ZTE 9-month revenue up 26.5% to RMB 58.29 billion; profit fell 21.5%

Operating revenue of ZTE, telecom equipment and solutions
provider in China, increased to RMB 58.29 billion for the nine months ended
September 30, 2011, clocking an increase of 26.5 per cent year-on-year.

ZTE posted net profit of RMB 1.07 billion, a year-on-year
decline of 21.5 per cent. The decrease is mainly attributable to increased
financial expenses, ZTE said
in a statement.

The company’s revenue from terminal sales increased 53.4
percent year-on-year, driven by growth in sales of 3G and CDMA terminals, and
GSM handsets and data cards. ZTE is the fifth largest handset maker in the

Revenue from telecom software systems, services and other
products grew 28 percent as a result of an increase in fixed terminals and
services sales.

The company reported year-on-year growth of 15 percent in
carrier network revenue. This increase is attributed to increased sales of
ZTE’s wireline products, optical communications systems, domestic sales of
GSM/UMTS system equipment and international sales of its CDMA system equipment.

ZTE is strengthening its position in the TD-LTE sector in
the first three quarters of 2011. It clinched new partnerships with Hutchison
(Sweden), Softbank (Japan) and operators in India and Saudi Arabia.

ZTE also has further developed its partnerships with
multinational operators such as France Telecom and MTN Group in the GSM/UMTS

ZTE secured a record-high market share of 12.5 per cent for
the period in the PTN field, maintaining its position as the global leader in
optical product manufacturing.

ZTE also obtained a 16.3 percent share of the high-end data
product market among China’s telecommunications operators, moving into the No.
3 spot domestically. This is attributed to an increase in sales of the
company’s high-end data products such as the M6000/T8000.

In the first three quarters of 2011, ZTE’s terminal product
sales continued to grow, and it is now ranked as the No. 5 handset manufacturer
in the world. Its flagship products such as the Blade, Skate and other
smartphones have enhanced the company brand.

To date, more than 5 million ZTE Blade phones have been sold
worldwide. Based on the Blade’s success, ZTE launched the Skate, a
next-generation 4.3-inch, large-screen smartphone in September. The Skate is
available in China, Hong Kong and selected European countries.

 The results missed an average forecast of 416 million
yuan as per five analysts polled by Thomson Reuters .
ZTE gets over half of its revenues from overseas markets, such as Europe and
emerging Asia, with a weak euro contributing less to its profits since the
company reports its financials in yuan, which has been strong.

By Telecomlead.com Team
[email protected]