Telecom network vendor ZTE said its profit will double in the first quarter of 2014 from the same period last year. ZTE is bullish about global 4G network deployments and 4G smartphones.
ZTE said net profit will be between RMB 425 million and RMB 637 million in the first quarter, a year-on-year increase of between 107.3 percent o 210.7 percent, according to ZTE’s preliminary results announcement filed to the Hong Kong stock exchange today.
The company did not reveal its revenue details.
ZTE expects to post significant increase in both first quarter gross profit and gross profit margins, as the company continued to focus on servicing higher-margin contracts.
Operating revenue from 4G infrastructure systems in China as a percentage of overall revenue increased, while gross profit margins for international projects improved, said ZTE.
The profitability of ZTE’s principal business posted a relatively significant increase. It is expected that net profit after extraordinary items will be over RMB 583 million in the first quarter, compared to a loss of RMB 615 million a year earlier.
