ZTE estimates that its first quarter profit doubled or even tripled, as the vendor made progress with its strategic refocus.
The company said it expects to report a net profit for the quarter of between 425 million yuan and 637 million yuan ($68.4 million - $102.6 million). This would be an increase of between 107.3% and 210.7% year-on-year.
ZTE has been refocusing its efforts around higher-margin contracts, and as a result expects its gross profit margins to improve during the quarter.
Net profit for the company's principal business is expected to be 583 million yuan, which compares to a loss before exceptional items of 615 million yuan in the first quarter of last year.
Revenue from China's 4G rollouts contributed to the turnaround, ZTE added. The company said it is “optimistic about the company’s business prospects as global 4G network deployments accelerate and demand for 4G mobile devices increase.”
An over-reliance on low-margin contracts led to ZTE reporting its first ever annual net loss during 2012. But a refocus on major markets and partners helped the company swing back to profit in 2013 despite a 10% decline in revenue.