China Techfaith Wireless (ticker: CNTF) said today that it will report at the low end of previously announced Q3 2005 guidance. The mobile handset designer cited softness in the Chinese handset market due to the fast growth of the domestic black market for cheaper, unauthorized GSM/GPRS handsets and the continued delay in the introduction of 3G. Details:
The company provided the following guidance during management's Q2 2005 earnings results conference call:
Q3 2005 Guidance
- Revenue to grow 10 - 15% quarter on quarter.
- Net margin to be around 45%.
- Number of revenue contributing models to be 40 - 50.
FY 2005 Guidance
- Revenue of $90 - $100 million.
- Net margin of around 45%.
Today's Revised Q3 Guidance (Quote From Company Press Release)
Based on preliminary information, the Company expects revenues for the third quarter 2005 will increase to approximately US$23 million or approximately 10% over the second quarter of 2005, with net income of approximately US$11 million for the third quarter of 2005. The Company previously expected revenue in the third quarter would grow 10% to 15% over the second quarter.
Assuming current business trends for the remainder of 2005, the Company now expects that revenues for the full year 2005 will be approximately US$90 million, with net income of approximately US$0.91 to US$0.93 per ADS. The Company previously expected revenue for the full year 2005 would be approximately US$90 million to US$100 million.
Comment: You can access the full press release here.