ZTE announces 2011 financials: turnover up, profits down, political scandals tricky
ZTE's annual earnings report is out and it's a mixed bag for the Chinese company with aspirations to go west. Revenues grew 23 percent to 86.25 billion RMB ($13.7 billion) but net profit fell a hefty 36.6 percent to 2.06 billion RMB ($327 million). More than half of ZTE's operating revenue came from overseas as the company moves into the global space and, while some of that cash came from its smartphone business, much more poured in from the infrastructure arm that supplies LTE equipment to networks. At the same time, ZTE is having to deal with accusations that it sold $131 million worth of snooping gear to Iran to monitor its own citizens, forcing the company to limit its operations there -- although it insists this won't have any impact on its future income.