TechFaith Q3 2015 net revenues plummet YoY

China TechFaith Wireless Communication Technology Limited (NASDAQ: CNTF) said it has announced its unaudited condensed consolidated financial results for the quarter ended September 30, 2015.

The company also announced the appointment of Hongwei Zhao to the company´s board of directors, effective immediately. Zhao replaces Tom Zhang as an independent director of the company.

For the third quarter of 2015, TechFaith reported total net revenues of USD7.6 million compared to USD23.6 million in the second quarter of 2015 and USD22.1 million in the third quarter of 2014.

The company incurred a USD2.35 million inventory obsolescence charge in the third quarter of 2015 in relation to the company´s mobile handset business, which negatively impacted its gross margin and net income. As a result, gross margin for the third quarter of 2015 was negative 6.7 percent compared to 11.9 percent in the second quarter of 2015 and 7.7 percent in the third quarter of 2014.

Net loss attributed to TechFaith for the third quarter of 2015 was USD5.4 million, or USD0.10 per basic and diluted weighted average outstanding American Depositary Share (ADS), compared to a net loss of USD1.8 million, or USD0.03 per basic and diluted weighted average outstanding ADS, in the second quarter of 2015 and a net loss of USD4.6 million, or USD0.09 per basic and diluted weighted average outstanding ADS, in the third quarter of 2014.

TechFaith is a developer, owner and operator of commercial real estate properties across China as well as a China-based mobile solutions provider for the global mobile handsets market.