updated 06:09 pm EDT, Sun October 14, 2012
Slowing economy doesn't help phone maker under scrutiny
Chinese telecommunications equipment manufacturer ZTE will report a loss as large as $279.2 million for the first nine months of 2012. This according to a preliminary results announcement ZTE made on the Hong Kong Stock Exchange on Sunday. ZTE's revenues have been hurt by a soft economy, and the company's fortunes have not been helped by its ongoing troubles with legislators and regulators in both the United States and the European Union.
ZTE's preliminary results announcement predicts that its loss will be between $263.3 and $279.2 million. Operating revenue for the company for the quarter ending September 30 is down 13 percent year-over-year. The company also reported lower overall gross profit margins for the nine months ended September 30.
ZTE's report also noted that the company was currently under investigation by the US Department of Commerce and Department of Justice over its dealings with Iran. The report states that ZTE is cooperating with the investigation, but that its operating results were adversely affected by the Iranian market.