Telecom giant ZTE releases profit forecast

China's second-largest telecom equipment and mobile phone maker ZTE Corp forecast net profits of between 500 million yuan to 750 million yuan ($82 million to $122 million) in the first nine months of 2013.

If the forecast is accurate it will mark a rebound from a loss for the same period a year earlier.

ZTE attributed the turnaround to improved gross profit margins and cost controls, according to a company filing to the Hong Kong stock change on Wednesday.

ZTE also disclosed its first half financial result on the same day.

Net profit in the first half of 2013, ending on June 30, was 310 million yuan, a year-on-year increase of 26.6 percent. However, revenue decreased by 11.9 percent to 37.6 billion yuan.

"Revenue fell because of a drop in sales of GSM and UMTS products in China, and declining demand for 2G devices," ZTE said in a statement sent to China Daily.

ZTE reported operating revenue of about 18.82 billion yuan from the domestic market in the first half, accounting for 50.1 percent of overall operating revenue.