Telecom equipment vendor ZTE on Tuesday said its revenue in nine months of 2013 dipped 10 percent to $8.96 billion (RMB 54.66 billion).
However, ZTE operational strategy to improve cash flow has assisted the Chinese company to post a 132 percent growth in nine-month net profit to RMB 552 million.
ZTE forecasts the company will post a full-year net profit in 2013, after a loss in 2012. It exercised stringent control over selling, general and administrative expenses, resulting in strong improvement in cash flow in the third-quarter. The positive operational cash flow reported in the third quarter followed a sequence of negative cash flow in the July-September periods in 2009 to 2012, said ZTE in a statement.
The 10 percent drop in revenue is due to sluggish market conditions. NSN, one of the rivals of ZTE, will announce its financial report on 29 October.
ZTE observed that several telecom service providers focused on 4G networks and the construction of broadband networks, and their ancillary transmission networks. The company says there was also progress in the development of emerging sectors such as cloud computing and the Internet of Things.
The future is bright for ZTE in China, its home market. It says TD-LTE network construction will drive investment opportunities for solution providers, while the ongoing implementation of the Broadband China strategy would provide policy support for the development of high-speed broadband infrastructure in China.
China Mobile has given a significant chunk of LTE orders to ZTE and Huawei, another Chinese telecom equipment vendor.
ZTE did not share specific details about its handset and enterprise business.
picture source: everychina.com