HONG KONG (Reuters) – China’s ZTE Corp reported on Monday a first-quarter profit of 862.6 million yuan ($128.2 million), as expected, up from 276 million yuan in the preceding three months, as it recovered from last year’s US sanctions.
The world’s fourth-largest telecommunications equipment maker by market share also forecast a net profit of 1.2-1.8 billion yuan for the first half of 2019.
The quarterly profit was towards the lower end of the company’s forecast range of 800 million to 1.2 billion yuan.
It reported a net loss of 5.4 billion yuan for the corresponding quarter a year earlier, which booked the impact of a crippling US supplier ban that has now been lifted.
Revenue dropped 19.34 percent to 22.2 billion yuan in January-March, from 28.88 billion yuan a year earlier.
ZTE was forced to stop most business between April and July last year due to US sanctions.
The sanctions were lifted after ZTE paid $1.4 billion in penalties. The company reported its worst half-year loss of 7.8 billion yuan in August.
($1 = 6.7314 Chinese yuan renminbi)
(Reporting by Sijia Jiang; Editing by Louise Heavens and Mark Potter)