ZTE Boasts LTE Momentum

ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763) published its audited first-half financials today, a few weeks after providing headline sales and profit numbers in its interim report, and took the opportunity to boast of significant success in the Long Term Evolution (LTE) and mobile device markets. (See ZTE Profit Drops 12.4% in H1.)

The company says it won 23 LTE contracts during the first six months of this year, including the world's first dual-mode LTE network (TDD and FDD), with more than half of those deals being struck in Europe, North America, Japan and "other developed regions." (See ZTE Wins HSPA/LTE Deal at DiGi , ZTE Combines LTE TDD and WiMax at P1, ZTE Scores LTE TDD/FDD Deal , E-Plus to Trial LTE With ZTE and MWC 2011: 3G Austria Dumps NSN for ZTE.)

The vendor has also boosted its terminals (handsets and data cards) business, with year-on-year growth of nearly 44 percent to 11.2 billion Yuan Renminbi (US$1.75 billion), while revenues from "telecommunication software systems, services and other products" increased 42.3 percent to RMB 5.6 billion ($878 million). (See ZTE Ramps Global Device Shipments.)

ZTE also claims to have made market-share gains in the fixed broadband access and packet transport markets, though it didn't provide sales details for these specific product lines. And having reported a 21.5 percent growth in total revenues for the first six months of the year, ZTE expects to grow further during the second half of 2011 as the three main Chinese carriers (which still account for 44 percent of all sales) are expected to "speed up their capital expenditure," while the vendor expects mobile broadband network rollout and demand for smart wireless terminals to drive international growth.

— Ray Le Maistre, International Managing Editor, Light Reading

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