Huawei Sales Stay on Track

Huawei Technologies Co. Ltd. appears poised to hit its aggressive 29 percent growth target for 2009, according to numbers reported by a tradeshow organizer yesterday.

The figures were part of a press release randomly issued on Wednesday by Fairtheworld Ltd., a China-based company that puts on virtual tradeshows. The release isn't tied to any particular event; rather, it just seems to be a vehicle for Fairtheworld to talk about Huawei's supposed awesomeness.

According to the release, Huawei's contract sales for the first half of 2009 were $15.7 billion, on track with the $30 billion Huawei was expecting for the full year. (See Huawei Predicts 29% Growth in 2009.)

It goes on to say Huawei's revenues for the past four quarters were $18.329 billion. The company's revenues tend to be 75 percent of its contract sales. (See Huawei Reports 2007 Revenues of $12.5B.)

A Light Reading query about the veracity of the numbers was forwarded to Huawei officials in China last night; at press time, Huawei hadn't responded.

— Craig Matsumoto, West Coast Editor, Light Reading

Pete Baldwin 12/5/2012 | 3:58:09 PM
re: Huawei Sales Stay on Track

Huawei has gotten back to us with basically a no-comment, saying they only report their numbers on an annual basis.  (Note that that's voluntary; Huawei is private and doesn't have to tell anybody anything.)

Maybe Huawei is using this tradeshow group as a way to "release" earnings without releasing earnings?  I still find that press release to be odd and really random.

agarcia75 12/5/2012 | 3:57:58 PM
re: Huawei Sales Stay on Track

There is no such thing as randomness regarding Huawei´s moves. This company is challenging the incumbents in the networking market and its performance is second after Cisco´s. The announcement represents a worrisome signal for its competitors, because if the numbers are true, the company will, in fact, exceed its growth forecast (3&4Q sales represent 60-65% of annual networking sales) in an environment of negative CAPEX growth. Under this situation, the competition is a zero-sum game in which someone losses what Huawei gains.

Regards, Andres.    

Pete Baldwin 12/5/2012 | 3:57:57 PM
re: Huawei Sales Stay on Track

Thanks for the comment, Andres.  It's true Huawei has become a force to be reckoned with.

"Randomness" referred to the press release itself, not to Huawei.  To reiterate: This was a release from some outside party, saying nothing other than "Gee, ain't Huawei awesome" without any particular context ... and Huawei WON'T CONFIRM IT. You might presume it's Huawei's way of sneaking out an earnings statement on the sly - but why? they're private; they can announce whatever they want.

Anyway - in inaccurate California slang (and elsewhere), "random" gets used to represent anything that seems to have happened for no logical reason -- like if you answer your cell phone and the guy on the line immediately asks for ice cream.  Maybe that release was a normal thing for FairTheWorld.com, but coming across my browser it just seemed.... random.

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