10/25/2012 11:10:20 AM
ZTE posts first ever quarterly loss
ZTE has made its first ever quarterly loss, RMB1.95bn (£193m), as it blamed a global slowdown in network investment and a delay in projects.
The manufacturer said one bright spot was its handset performance, with sales up 15.36%. However, ZTE has already launched a plan to turnaround its business, cutting costs and spending on research and development, consolidating underperforming products and restructuring the business.
Sales across the business were RMB60.733bn (£6.02bn), up 5.01% on last year. While handset sales increased, driven by a rise in demand for 3G handsets, and software systems revenue also rose by 23.29%, sales from network spend were down 5.21%.
Editor: Graeme Neill