Chinese telecom device maker ZTE published its performance results for the first three quarters of 2013.
ZTE's operating revenue was CNY54.659 billion during the first three quarter of 2013, a year-on-year decrease of 10%; its net profit was CNY552 million, a year-on-year increase of 132.44%; and its basic earnings per share were CNY0.16.
In addition, ZTE predicted that the company will make up the deficits and gain surpluses in 2013. In 2012, ZTE made net losses of CNY2.84 billion.
ZTE said that the profit increase was mainly due to the enhanced control of contract profitability and restricted signing of low gross margin contracts. Therefore, the company's gross margin is expected to improve for the entire year. At the same time, ZTE improved cost management and its expenses expect to see obvious decreases compared with the same period of last year.
However, since the issuance date for China's 4G licenses has not yet been decided, Chinese carriers' procurement schedules of 4G devices still has uncertainties. This will also bring uncertainties to ZTE's sales and earnings for the rest of 2013.
