Welcome!

Mobile IoT Authors: Elizabeth White, Liz McMillan, Scott Allen, Peter Silva, AppDynamics Blog

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
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
On Dice.com, the number of job postings asking for skill in Amazon Web Services increased 76 percent between June 2015 and June 2016. Salesforce.com saw its own skill mentions increase 37 percent, while DevOps and Cloud rose 35 percent and 28 percent, respectively. Even as they expand their presence in the cloud, companies are also looking for tech professionals who can manage projects, crunch data, and figure out how to make systems run more autonomously. Mentions of ‘data science’ as a skill ...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices 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 opportuni...
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...