ZTE posts first net loss
27 March 2013 | Kavit Majithia
China-based ZTE has posted its first ever annual net loss, of 2.84 billion Yuan ($460 million), as the company struggles with project delays and decreasing margins in emerging markets.
It posted a loss after reporting favourable results, posting a net profit of 2.06 billion Yuan in 2011, but the company did flag early this year it expected to post a loss. It actually predicted a higher loss, of up to 2.9 billion Yuan, as the company feels the effect of low operator spend on equipment.
In Q4 2012 the company’s net loss stood at 1.1 billion Yuan, compared with a net profit of 991.6 million Yuan at the same period a year before.