Penalty in the US made ZTE suffered a loss in the 4th quarter

The Chinese company ZTE has been accused by US authorities of violating the sanctions against Iran and North Korea, that the outcome of the court led to a large fine. As a result, the company showed losses on the results of the last quarter of 2016, and as a whole the annual period for it ended in the red. Amount of the fine amounted to 892 million dollars, and shown on Q4 loss – 750 million. In the event that ZTE will not change their actions in relation to the sanctions regime, it will be another penalty – $ 300 million.

In the third quarter of 2016 the company made a profit of 158 million dollars in the black were the first two quarters. Following the results of 2016, ZTE expected to receive 557 million dollars in profits that was to give almost 20% growth in comparison with 2015. However, the actual result was in the red by 343 million dollars. However, the company does not see any reason to see the situation very negatively. Quarterly growth grew by 24.6% during the year in terms of revenue, whereas a year earlier it was only 1%. The reaction on the stock exchange to post a loss was also in favor of ZTE – the end of the day its shares showed an increase of 13.9%.

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