ZTE Reports Losses, Plans Closures
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.