China TechFaith Wireless (CNTF) announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2007.
Net revenues for the fourth quarter of 2007 were US$45.7 million, representing a 56.7% increase from US$29.1 million for the same period in 2006. Net revenues for the quarter increased by 18.8% sequentially, from US$38.4 million in the third quarter of 2007.
Gross profit was US$14.3 million for the quarter, an increase of US$6.2 million, or 75.6%, compared to US$8.2 million for the same period last year. Net revenues for fiscal year 2007 were US$143.4 million, representing a 77.5% increase from US$80.8 million for fiscal year 2006. Revenues from the ODP business for fiscal year 2007 were US$109.6 million, and design fees and royalty income for fiscal year 2007 were US$33.8 million.
As part of the company's Sarbanes Oxley compliance, they have conducted an internal control assessment and have identified certain unnamed internal control deficiencies including material weaknesses. The company reports it is working to remedy these issues and already have action plans and remediation deadlines in place. The final results of the assessment of internal controls will be disclosed in its 2007 20-F release.
