The Beijing, China-based company said it expects third-quarter growth to increase sequentially by 10% to $23m, compared with its earlier forecast of a 10% to 15% growth rate. It said net income will be $11m.
It cut its full-year revenue forecast to $90m from a previous range of $90m to $100m, and the Nasdaq-quoted company now predicts that net income for the year will $0.91 to $0.93 per ADS.
China TechFaith also blamed continued delay in the introduction of 3G in China for softness in the market. While it previously expected to recognize limited revenues from 3G toward the end of 2005, it said it now expects this design activity in 2006.
CEO Defu Dong said he is still positive about the company’s growth prospects and its goal remains to become the largest handset provider in the world. He said the company plans to launch in 2006 a Linux CDMA 1X Smart Phone and a WCDMA Smart Phone. He said there is also a significant market opportunity in Windows CE-based Smart Phones it plans to launch its first in China next year.
