ZTE Warns of Profit Plunge

ZTE, a leading provider of network equipment, said its gross profit in the first half of 2012 will be 60% to 80% lower than in the same period last year. The Shenzhen-based company gave three reasons, one of which was: "While the company sustained growth in overall income for the reporting period, it fell short of the company’s targeted growth rate as certain domestic carrier network contracts were not recognised in the results for the current reporting period given the postponement of the tender activities of such carriers. Meanwhile, there was a decline in the overall gross profit margin of the company compared to the same period last year." source: ZTE statement