Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (105363)	3/31/2014 6:41:41 PM
From: TobagoJack	Respond to of 219802

huawei seems to be going from strength to strength despite usa/nsa embargo online.wsj.com Huawei Forecasts Revenue Surge The Huawei logo outside the company's Wuhan, China office. Reuters SHENZHEN, China—Huawei Technologies Co. expects its revenue to rise to 435.7 billion yuan ($70 billion) in 2018 from 239.03 billion yuan last year, as global telecommunications carriers shift to faster fourth-generation mobile networks and corporate clients upgrade their private networks. The Chinese company, the world's second-largest telecom-gear supplier after Sweden's Ericsson, ERIC-B.SK +0.94% said Monday that its net profit rose 34% last year, helped by stronger demand in China for smartphones and telecom networking equipment. Huawei's revenue and earnings have climbed steadily in recent years, even though many global telecom operators have been reluctant to increase spending on networking equipment. And China, which accounts for one-third of Huawei's revenue, is a significant growth engine for the company. Huawei's revenue in China rose 14% last year from 2012, as smartphone sales increased. Revenue from the company's enterprise business, which helps corporate clients build their internal communication networks, increased roughly 30%, Huawei executives said. Chinese telecom carriers' recent shift to 4G mobile-network technology has also created more demand for Huawei's upgrades. While the results confirm Huawei's strong performance, the closely held company doesn't disclose the profitability of each business unit, which makes defining the drivers of its earnings growth more opaque. Chief Financial Officer Cathy Meng said Monday that the company plans to disclose more detailed earnings information in the future, but she declined to say when. Huawei said its net profit rose 35% to 21 billion yuan last year from 15.6 billion yuan in 2012. Operating profit rose 41% to 29.13 billion yuan from 20.66 billion yuan, while revenue increased 8.6% to 239.03 billion yuan from 220.2 billion yuan. Huawei said it spent 30.7 billion yuan last year on research and development, or about 13% of its revenue, up 3.4% from the 29.7 billion yuan it spent in 2012. This year, Huawei expects its revenue to rise 10%. It forecasts an 8% rise in revenue from its mainstay telecom-network-equipment business, while it predicts revenue from the enterprise business to rise more than 30%. Revenue from Huawei's consumer business, which includes smartphones, will likely increase more than 15%, the company said. Over the next five years, Huawei expects that the deployment of 4G network technology world-wide will boost demand for its networking gear as well as the sales of its 4G-compatible mobile devices. Huawei also expects stronger demand for its equipment for data centers. The latest results and forecasts come while Huawei is in the spotlight because of recent media reports that the U.S. National Security Agency allegedly spied on the Chinese company in 2009. German weekly news magazine Der Spiegel reported in March that the NSA accessed Huawei's email archive, including messages sent by company founder and Chief Executive Ren Zhengfei. If the NSA had, in fact, hacked into Huawei's internal communication, the agency wouldn't find anything usual, acting Chief Executive Eric Xu said Monday. "There are so many discussions outside Huawei, but internally we maintain a calm, business-as-usual atmosphere," Mr. Xu said. The report on the NSA's alleged spying on Huawei further complicated the existing cybersecurity debates surrounding the company. In 2012, a U.S. congressional report recommended that U.S. telecom carriers avoid using Huawei's equipment, saying that the Chinese company's gear could be used by Beijing to spy on Americans. Although Huawei has repeatedly denied such allegations, the company has been effectively shut out of the U.S. telecom-equipment market. On Monday, Mr. Xu again rejected allegations by U.S. lawmakers that the Chinese government could use Huawei's gear for spying on other countries. "As a business organization, no one would be so unwise to do such a thing," he said. Mr. Xu said there has been no evidence to substantiate any of the claims made against Huawei, and the allegations are based on anxiety about the future rather than facts. Still, he added, Huawei will continue to address such anxiety. Write to Juro Osawa at juro.osawa@wsj.com Corrections & Amplifications Huawei's revenue for 2013 is 239.03 billion yuan. An earlier version of this article incorrectly referred to the figure as 245.8 billion yuan.