ZTE grew its net profit for the first quarter by nearly 16% to 950 million yuan ($146.7 million) amid a tight infrastructure market.
The Chinese vendor recorded operating revenue of 21.86 billion yuan, up 4.09% year-on-year. ZTE has set targets of achieving 44% profit growth in 2016 and doubling revenue by 2020 to over 200 billion yuan.
In its core carrier networks business, ZTE said it achieved continued growth in traditional businesses including LTE and fiber. The company is focused on developing emerging technologies including pre5G/5G equipment, Big Video, SDN and NFV and the IoT.
In the enterprise segment, ZTE won a series of Smart City 2.0 contracts and developed its smart rail transport business. In consumer equipment, ZTE increased its market share in the network video communications and TV set top box product segments.
“Looking towards the next quarterly announcement, ‘multiple connections and ultra-broadband’ will become the new trademarks of the M-ICT era,” ZTE said in a statement.
“Network operators will benefit from ZTE’s increased value on smart network to support operators’ transformation from telecommunications operators to information carriers... Concurrently, ZTE will continue to increase internal managerial efficiencies, especially in talent acquisition to advance core R&D to advance its M-ICT strategy journey ”