ZTE springs back to profit, in rebound from US ban

But sales sag 20% as mainstay equipment and smartphones perform poorly

People walk pass the ZTE booth at the Mobile World Congress in Barcelona, Spain. The Chinese telecom giant reported a net profit of 862.6 million yuan ($128 million) for the first quarter on Monday. © Reuters

TAKASHI KAWAKAMI, Nikkei staff writer

April 30, 2019 01:05 JST

GUANGZHOU -- ZTE, China's second-largest supplier of telecommunications equipment, reported net profit of 862.6 million yuan ($128 million) for the first quarter on Monday, rebounding from the loss sustained a year ago due to U.S.-imposed trade restrictions.

The company attributed the profit jump to the absence of the loss incurred a year ago due to a U.S. supplier ban that has now been lifted.