Huawei Technology Co Ltd (SHE:002502) reported a 19% increase in revenues for the first half of fiscal year 2014 (1HFY14). In a statement released on Monday, the company also mentioned that its operating margins for the first six months of the year were 18.3%.
The company said revenues for the period were 135.8 billion yuan ($21.88 billion), which met its expectations as it continues to investment in LTE networks across the globe. Furthermore, the company credited growth in software and services as a reason for the boost in its carrier network business.
In a brief statement on the results, Huawei’s Chief Financial Officer Cathy Meng said that the company is seeing results in the enterprise business. As a brand, Huawei is also getting strong visibility in consumer markets, especially because of its extensive smartphone line. “Our flagship smartphone, the Ascend P7, is being sold in more than 70 countries and regions”, Meng said.
The company’s surging smartphone business has also become an issue for the industry leader Samsung Electronics Ltd (F) (SSNLF). Samsung reported estimates earlier this month, for its second quarter of fiscal 2014 (2QFY14), which showed declining profits.
Although currency fluctuations have been cited as the main reason for Samsung’s decline, Huawei and other Chinese smart phone makers like Lenovo Group Limited (ADR) (LNVGY) are also eating away at its market share. Huawei is putting up a serious challenge to Samsung through its high-end phones, which are at the same price-point as Samsung’s mid-range product line.
Huawei has set out plans to achieve $70 billion in revenues by 2018, and also expects to have 5G networks and 10Gbps broadband connections by then. Regarding 2014, Meng said: “We are confident that in 2014 we will achieve sustainable growth, robust operations, and healthy financials.”
Source: http://www.bidnessetc.com/22965-huawei-reports-solid-results-for-first-half-of-2014/
