Click here to close now.

Welcome!

Symbian Authors: Jack Newton, Kevin Benedict, Matthew Lobas, Shelly Palmer, RealWire News Distribution

News Feed Item

TechFaith Reports Third Quarter 2012 Financial Results

BEIJING, Nov. 21, 2012 /PRNewswire/ -- China TechFaith Wireless Communication Technology Limited (NASDAQ:CNTF) ("TechFaith" or the "Company") today announced its unaudited financial results for the third quarter ended September 30, 2012.

For the third quarter of 2012, TechFaith reported revenue of US$31.5 million compared to US$32.4 million in the second quarter of 2012 and US$80.6 million in the third quarter of 2011. This is in line with the Company's prior guidance for third quarter 2012 revenue to be in the range of US$30.0 million to US$35.0 million. Gross profit for the third quarter of 2012 was US$7.2 million compared to US$7.3 million in the second quarter of 2012. Gross margin for the third quarter increased slightly to 22.8% compared to 22.6% in the previous quarter. Net income attributed to TechFaith for the third quarter of 2012 was US$0.9 million or US$0.02 per basic and diluted weighted average outstanding ADS, compared to a net loss of US$0.7 million or US$0.01 loss per basic and diluted weighted average outstanding ADS in the second quarter of 2012.

Miss Ouyang Yuping, TechFaith's Chief Financial Officer, said, "The third quarter developed as expected with a favorable mixed product shipment. Our operating expenses were reduced to US$5.1 million in the third quarter of 2012 from US$8.3 million in the second quarter of 2012. We had lower bad debt expense in the third quarter and lower selling and marketing expenses compared to the previous quarter. While we are starting to see some stability, we remain cautious, given the continued challenging economic environment and uncertain macro demand picture."

Mr. Deyou Dong, President and Chief Operating Officer of TechFaith, said, "We remain focused on developing unique mobile devices targeting certain niche and enterprise segments, which is important given the positive impact on TechFaith's revenue and margins. Our sales team continues to work closely with both local and regional customers to provide tailored solutions. As just one example, during the third quarter of 2012, we benefitted from shipments of our TITAN model to the European and Southeast Asian market."

Mr. Defu Dong, Chairman and Chief Executive Officer of TechFaith, said, "We have enhanced the integration among our applications, software and hardware to better target current market opportunities. We also continue to develop our motion games, mobile games and Disney theme games. We have extensive intellectual property in this area. Our focus on intellectual property helps differentiate our products in a crowded market and helps us add value to customer-tailored solutions. We are also working to further grow our user base in the Internet segment as it provides even greater opportunities for our strategy. We believe this will bring us added synergies and eventual business growth."

Fourth Quarter of 2012 Outlook

The below forecast is TechFaith's current and preliminary view, which is subject to change. TechFaith currently expects total revenue for the fourth quarter of 2012 to be in the range of US$30.0 million to US$35.0 million.

Investor Conference Call / Webcast Details

TechFaith will hold a conference call on Wednesday, November 21, 2012 at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Wednesday, November 21, 2012 in Beijing). The dial-in is +1-617-614-3453 or +1-800-510-9691, with passcode 67589141. A live webcast of the conference call will also be available on TechFaith's website at www.techfaithwireless.com.

A replay of the call will be available approximately 2 hours after the conclusion of the live call by telephone at +1-617-801-6888, with passcode 11634361. A webcast replay will also be available at www.techfaithwireless.com.

About TechFaith

TechFaith (NASDAQ: CNTF) has three primary businesses. The Company is a leading global mobile solutions provider for the global mobile handsets market (previously called the ODP (Original Developed Product) business)). The Company is a leading developer of specialized mobile phones for differentiated market segments, including the rapidly growing smartphone market targeting wireless mobile phone network operators and end users; the Company also serves sports enthusiasts with a tailored line under the Jungle brand and the teen market under licensed brands. Under the Company's 17FOX brand, the Company has built a leading intellectual property based motion gaming business ranging from Bluetooth-enabled motion gaming controllers and software to a planned proprietary set-top motion game box. For more information, please visit www.techfaithwireless.com, www.17vee.com and www.798game.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident," "outlook" and similar statements. Among other things, the business outlook and strategic and operational plans of TechFaith and management quotations contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. TechFaith does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of U.S. Dollars, except share and per share/ADS data and unless otherwise stated)



Three Months Ended


Three Months Ended


Nine Months Ended

June 30,


September 30,


September 30,


2012


2012

2011


2012

2011









Revenues:








ODP

$13,470


$13,311

$52,348


$45,726

$162,073

Brand name phone sales

11,785


11,329

17,168


38,649

48,261

Game

7,151


6,909

11,131


22,256

31,779

Total net revenues

$32,406


$31,549

$80,647


$106,631

$242,113









Cost of revenues:








ODP

$13,661


$12,222

$44,423


$43,394

$129,929

Brand name phone sales

7,680


7,783

10,379


25,310

29,364

Game

3,746


4,337

6,731


12,569

16,663

Total cost of revenues

$25,087


$24,342

$61,533


$81,273

$175,956









Gross Profit

$7,319


$7,207

$19,114


$25,358

$66,157









Operating expenses:








General and administrative

$1,512


$669

$3,126


$3,637

$14,464

Research and development

2,179


2,192

3,687


7,333

9,721

Selling and marketing

4,626


1,545

4,425


11,527

9,544

Impairment of intangible assets

-


702

-


702

-

Impairment of goodwill

-


-

606


-

606

Total operating expenses

$8,317


$5,108

$11,844


$23,199

$34,335









Government subsidy income

-


99

111


188

188

Other operating income

269


281

175


649

1,258









(Loss) income from operations

$(729)


$2,479

$7,556


$2,996

$33,268









Interest income

635


523

362


1,604

977

Investment income

-


-

-


-

883

Other income (expenses)

4


(313)

3


(309)

4

Change in fair value of put option

-


(90)

-


(90)

-

(Loss) income before income taxes

$(90)


$2,599

$7,921


$4,201

$35,132

Income tax expenses

(278)


(1,518)

(4,249)


(3,488)

(8,783)

Net (loss) income

$(368)


$1,081

$3,672


$713

$26,349

Less: net income attributable to the noncontrolling interest

(346)


(205)

(395)


(964)

(1,907)

Net income(loss) attributable to TechFaith

$(714)


$876

$3,277


$(251)

$24,442









Net (loss) income attributable to TechFaith per share








  Basic

$(0.00)


$0.00

$0.00


$(0.00)

$0.03

  Diluted

$(0.00)


$0.00

$0.00


$(0.00)

$0.03









Net income (loss) attribute to TechFaith per ADS








  Basic

$(0.01)


$0.02

$0.06


$(0.00)

$0.46

  Diluted

$(0.01)


$0.02

$0.06


$(0.00)

$0.46









Net income

$(368)


$1,081

$3,672


$713

$26,349

Other comprehensive income (loss), net of tax








Foreign currency translation adjustment

(3,093)


4,008

3,634


642

9,066

Comprehensive income (loss)

(3,461)


5,089

7,306


1,355

35,415









Less: Comprehensive income attributable to noncontrolling interest

(159)


(482)

(395)


(1,043)

(1,907)

Comprehensive income(loss) attributable to TechFaith

$(3,620)


$4,607

$6,911


$312

$33,508









Weighted average shares
outstanding








  Basic

794,003,193


794,003,193

794,003,193


794,003,193

794,003,193

  Diluted

794,003,193


794,003,193

794,003,193


794,003,193

794,003,193

 

CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands of U.S. Dollars)














September 30,
2012


June 30,
2012


December 31,
2011







Assets






Current assets:






Cash and cash equivalents

$265,044


$252,033


$250,637

Restricted cash

-


26


-

Accounts receivable

4,552


2,246


6,715

Inventories

6,486


8,771


7,984

Prepaid expenses and other current assets

20,528


14,520


17,560

Deferred tax assets-current

226


222


207

Total current assets

$296,836


$277,818


$283,103







Plant, machinery and equipment, net

$44,214


$44,926


$48,977

Land use rights, net

10,607


10,547


10,755

Construction in progress

26,688


22,757


21,002

Acquired intangible assets, net

6,306


7,563


2,327

Goodwill

1,242


1,242


1,242

Deferred tax assets-noncurrent

1


1


3

Total assets

$385,894


$364,854


$367,409







Liabilities and shareholders' equity






Current liabilities:












Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to China Techfaith Wireless Communication Technology Limited, $nil, $nil and $nil as of September 30, 2012, June 30, 2012 and December 31, 2011 respectively)

10,176


9,414


8,792

Accrued expenses and other current liabilities(including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to China Techfaith Wireless Communication Technology Limited, $684, $831 and $837 as of as of September 30, 2012, Jun 30, 2012 and December 31, 2011 respectively)

14,364


15,639


21,721

Advance from customers(including advance from customers of the consolidated variable interest entities without recourse to China Techfaith Wireless Communication Technology Limited, $217 and $212 and $202 as of September 30, 2012, June 30, 2012 and December 31, 2011 respectively)

9,324


8,681


8,492

Deferred revenue(including deferred revenue of the consolidated variable interest entities without recourse to China Techfaith Wireless Communication Technology Limited, $nil, $nil and $nil as of September 30, 2012, June 30, 2012 and December 31, 2011 respectively)

4,584


2,111


219

Income tax payable (including income tax payable of consolidated variable interest entities without recourse to China Techfaith Wireless Communication Technology Limited, $21, $23 and $21 as of September 30, 2012, June 30, 2012 and December 31, 2011 respectively)

660


439


1,804

Short-term loan (including short-term loan of the consolidated variable interest entities without recourse to China Techfaith Wireless Communication Technology Limited, $nil, $nil and $nil as of September 30, 2012, June 30, 2012 and December 31, 2011 respectively)

15,350


5,350


-

Total current liabilities

$54,458


$41,634


$41,028







Long-term loan

290


290


290

Deferred tax liability-noncurrent

81


89


106







Total liabilities

$54,829


$42,013


$41,424







Shareholders' equity






Paid in capital

$16


$16


$16

Additional paid-in capital

142,549


142,268


141,667

Accumulated other comprehensive income

44,149


40,418


43,597

Statutory reserve

22,631


22,631


22,631

Retained earnings

97,021


96,145


97,272

Total Techfaith shareholders' equity

$306,366


$301,478


$305,183

Noncontrolling interest

$24,699


$21,363


$20,802

Total shareholders' equity

$331,065


$322,841


$325,985

Total liabilities and shareholders' equity

$385,894


$364,854


$367,409

SOURCE China TechFaith Wireless Technology Limited

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
The recent trends like cloud computing, social, mobile and Internet of Things are forcing enterprises to modernize in order to compete in the competitive globalized markets. However, enterprises are approaching newer technologies with a more silo-ed way, gaining only sub optimal benefits. The Modern Enterprise model is presented as a newer way to think of enterprise IT, which takes a more holistic approach to embracing modern technologies.
One of the biggest impacts of the Internet of Things is and will continue to be on data; specifically data volume, management and usage. Companies are scrambling to adapt to this new and unpredictable data reality with legacy infrastructure that cannot handle the speed and volume of data. In his session at @ThingsExpo, Don DeLoach, CEO and president of Infobright, will discuss how companies need to rethink their data infrastructure to participate in the IoT, including: Data storage: Understanding the kinds of data: structured, unstructured, big/small? Analytics: What kinds and how responsiv...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
The Workspace-as-a-Service (WaaS) market will grow to $6.4B by 2018. In his session at 16th Cloud Expo, Seth Bostock, CEO of IndependenceIT, will begin by walking the audience through the evolution of Workspace as-a-Service, where it is now vs. where it going. To look beyond the desktop we must understand exactly what WaaS is, who the users are, and where it is going in the future. IT departments, ISVs and service providers must look to workflow and automation capabilities to adapt to growing demand and the rapidly changing workspace model.
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. He discussed opportunities and challenges ahead for the IoT from a market and technical point of vie...
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, a...
Grow your business with enterprise wearable apps using SAP Platforms and Google Glass. SAP and Google just launched the SAP and Google Glass Challenge, an opportunity for you to innovate and develop the best Enterprise Wearable App using SAP Platforms and Google Glass and gain valuable market exposure. In his session at @ThingsExpo, Brian McPhail, Senior Director of Business Development, ISVs & Digital Commerce at SAP, outlined the timeline of the SAP Google Glass Challenge and the opportunity for developers, start-ups, and companies of all sizes to engage with SAP today.
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo – to be held June 9-11, 2015, at the Javits Center in New York City, NY – is now accepting Hackathon proposals. Hackathon sponsorship benefits include general brand exposure and increasing engagement with the developer ecosystem. At Cloud Expo 2014 Silicon Valley, IBM held the Bluemix Developer Playground on November 5 and ElasticBox held the DevOps Hackathon on November 6. Both events took place on the expo floor. The Bluemix Developer Playground, for developers of all levels, highlighted the ease of use of...
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise behind this presentation will provide attendees with a leading edge view of rapidly emerging IoT oppor...
For years, we’ve relied too heavily on individual network functions or simplistic cloud controllers. However, they are no longer enough for today’s modern cloud data center. Businesses need a comprehensive platform architecture in order to deliver a complete networking suite for IoT environment based on OpenStack. In his session at @ThingsExpo, Dhiraj Sehgal from PLUMgrid will discuss what a holistic networking solution should really entail, and how to build a complete platform that is scalable, secure, agile and automated.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
Hadoop as a Service (as offered by handful of niche vendors now) is a cloud computing solution that makes medium and large-scale data processing accessible, easy, fast and inexpensive. In his session at Big Data Expo, Kumar Ramamurthy, Vice President and Chief Technologist, EIM & Big Data, at Virtusa, will discuss how this is achieved by eliminating the operational challenges of running Hadoop, so one can focus on business growth. The fragmented Hadoop distribution world and various PaaS solutions that provide a Hadoop flavor either make choices for customers very flexible in the name of opti...
In the consumer IoT, everything is new, and the IT world of bits and bytes holds sway. But industrial and commercial realms encompass operational technology (OT) that has been around for 25 or 50 years. This grittier, pre-IP, more hands-on world has much to gain from Industrial IoT (IIoT) applications and principles. But adding sensors and wireless connectivity won’t work in environments that demand unwavering reliability and performance. In his session at @ThingsExpo, Ron Sege, CEO of Echelon, will discuss how as enterprise IT embraces other IoT-related technology trends, enterprises with i...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...