Welcome!

.NET Authors: ITinvolve Blog, Srinivasan Sundara Rajan, Sematext Blog, Aditya Banerjee, Jayaram Krishnaswamy

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 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 ...
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP and chief architect at BSQUARE Corporation; Seth Proctor, CTO of NuoDB, Inc.; and Andris Gailitis, C...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The 3rd International Internet of @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 - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immediate and actionable interpretation of events as they happen. Another aspect concerns how to deliver ...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science from the University of California, Berkeley.
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness, and in-car entertainment and this excitement will bleed into other areas. On the commercial side, m...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.