Chinese vendor plans to cut jobs and close offices in overseas markets following a dip into the red in the first nine months of 2012.
ZTE is set to report a net loss for the first nine months of 2012--despite a year-on-year increase in revenues--and is planning cost-cutting measures to claw its way back to profitability.
The equipment vendor, which has historically reported slim profit margins, announced Sunday that it expects to report a net loss of between 1.65 billion and 1.75 billion Yuan Renminbi (U.S. $263 million to $279 million) for the nine months to the end of September, compared with a profit of just more than RMB 1 billion ($159 million) during the same period in 2011.
The news sent ZTE's share price into a sharp decline on the Hong Kong stock exchange, where it sunk 15.8% to HK $10.56.
Join us for a roundup of the top stories on InformationWeek.com for the week of December 14, 2014. Be here for the show and for the incredible Friday Afternoon Conversation that runs beside the program.