China TechFaith Wireless Communication Technology Limited (CNTF) today announced unaudited financial results for the second quarter ended June 30, 2011. Even with financials are below estimate, company has enough room to grow.
Yesterday, TechFaith Wireless Technology announced that it will launch a new mobile social media solution in China called “17Talk”, along with “17Store”, through its subsidiary TechFaith Software China Limited (TechSoft), a joint venture company with QUALCOMM Incorporated. 17Talk is an innovative social media solution based on a user’s friends stored as contacts in his or her mobile phonebook. 17Talk facilitates easy peer to peer contact, text chatting in groups, photo exchange, voice communication, and plans to support video communication. 17Talk has the ability to bypass a mobile phone user’s network and platform restrictions, allowing iPhone and Android users, Google’s Gtalk, and MSN users to take advantage of free communication.
For the second quarter of 2011, TechFaith reported net revenue of US$82.8 million, a 26% increase compared to US$65.5 million in the second quarter of 2010, and a 5% increase compared to US$78.7 million in the first quarter of 2011. Gross margin for the second quarter of 2011 was 26% compared to 32% in the first quarter of 2011 and 24% in the second quarter of 2010, reflecting higher unit shipments of products from the Company’s ODP (Original Developed Product) business in the second quarter of 2011, the margin for which tend to be lower than the Company’s corporate average gross margin. Income from operations for the second quarter of 2011 was US$10.0 million, an 18% increase compared to US$8.5 million in the same quarter last year, and a 37% decrease compared to US$15.8 million in the previous quarter. Net income attributed to TechFaith for the second quarter of 2011 was US$7.3million or US$0.14 per basic and diluted weighted average outstanding ADS, compared to US$7.5 million or US$0.16 per basic weighted average outstanding ADS and US$0.11 per diluted weighted average outstanding ADS in the second quarter of 2010, compared to US$13.8 million or US$0.26 per basic and diluted weighted average outstanding ADS in the first quarter of 2011.
China Techfaith Wireless Communication Technology Limited
Building 1 No 13 YongChang North Road
Beijing Economic-Technological Development Area
Phone: 86 10 5822 8888
Fax: 86 10 5822 8200
TechFaith (NASDAQ: CNTF) is a China-based company with global operations focused on opportunities in mobile phones and the fast growing PC and online gaming markets.