Shenzhen, China-based ZTE Group today reported a net profit of $16 million for the first quarter. That’s up 39.68 percent from $11.4 million in the same period last year. Revenue rose 13.59 percent to $1.9 billion from $1.7 billion compared with the same period last year.
According to a press release, investments in telecom equipment in the domestic market remained stable, with mobile network construction and optical communication equipment accounting for a major share of the capital expenditure of carriers. In the international market, the impact of the financial crisis was waning, and ZTE said it was finding more opportunities as some equipment manufacturers left the mainstream market.
By product category, ZTE’s business segment of carriers’ networks reported 0.9 percent growth compared with the same period last year, driven mainly by revenue from the sales of optical communication products and wireline switch and access products.
The terminal segment reported sales growth of 41.8 percent year-over-year, which it attributes mainly to growth in the sales of high-end products such as 3G handsets. Revenue from telecommunications software systems, services and other products also grew by 40.8 percent, reflecting mainly growth in revenue from enterprise network products and servicing products.