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ZTE posts FY loss on lower revenues, margins
2013-03-27 17:40:00| Telecompaper Headlines
(Telecompaper) ZTE reported annual revenue down 2.4 percent in 2012 to CNY 84.2 billion, hurt by delays in some network contracts and lower sales of feature phones. In its home market China, revenues were stable at CNY 39.6 billion, while sales abroad fell 4.5 percent to CNY 44.7 billion. Revenues from carrier network equipment fell 10.6 percent to CNY 41.6 billion, and sales of end-user devices dropped 4.1 percent to CNY 25.8 billion. In software, services and other products, where ZTE has been looking to expand in the government and enterprise segments, the group grew revenues 31.1 percent last year to CNY 16.8 billion. The gross margin declined, hurt by a number of low-margin contracts in China, Africa and South America, the company said. The operating result moved to a loss of CNY 143 million from a profit of CNY 3.94 billion a year earlier, and in line with its earlier profit warning, the company recorded a net loss of CNY 2.84 billion for the year, versus a profit of CNY 2.06 billion in 2011. Operating cash flow moved to a positive CNY 1.87 billion, from a negative CNY 1.81 billion in 2011, and the group posted its first positive free cash flow in three years.
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Category:Telecommunications