by Staff Writers
Hong Kong (AFP) Oct 15, 2012
Shares in Chinese telecom firm ZTE, accused by US lawmakers of posing a security threat, tumbled 15.9 percent in Hong Kong on Monday after it released a third-quarter profit warning.
The stock closed at HK$10.56 a day after it projected a net loss between 1.9 billion yuan ($303 million) and 2.0 billion yuan for the three months to September 30, while the benchmark Hang Seng Index ended flat.
Operating revenue fell 13 percent in the same time period due to the "effect of delayed progress on certain international projects", ZTE said in a filing to the Hong Kong stock exchange late Sunday.
In Shenzhen, where ZTE is also listed, the stock closed down 10 percent, its daily limit, at 9.45 yuan ($1.50).
"We see ZTE's disappointing (third-quarter) performance as not solely due to company-specific issues," British bank Barclays said in a report, according to Dow Jones Newswires.
The bank said it believed the poor network operating environment would also apply to other Chinese companies in the sector, warning that the "worse may not be over yet".
ZTE said Wednesday that US network giant Cisco Systems had ended a 2005 strategic cooperation agreement, after it was accused by US lawmakers of doing business with Iran and posing a security threat.
The US congressional investigation said ZTE and another Chinese telecom firm, Huawei, should be barred from US contracts and acquisitions.
The report by the House Intelligence Committee, officially released last Monday, said the two firms "cannot be trusted" to be free of influence from Beijing and could be used to undermine US security.
Beijing has urged Washington to "set aside prejudices" in response to the probe findings.
Space Technology News - Applications and Research
Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.
U.N.: 6 billion cellphone subscriptions
United Nations, N.Y. (UPI) Oct 12, 2012
About 6 billion people had cellphone subscriptions at the end of 2011, but there were still a billion who did not, a United Nations agency report said. The number of people with mobile phones is increasing rapidly, with the International Telecommunications Union report indicating double-digit growth in cellphone subscriptions in developing countries over the last year, the Chicago Tribu ... read more
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|