Huawei reports full-year 2009 financial results

Huawei also reported an increased net profit of RMB18.3bn ($2.7bn) and net profit margin of 12.2%. The financial results were independently audited by international accounting firm KPMG.

Huawei's overall growth eased during a year in which overall capital expenditures by telecom network operators declined. Despite the challenging macro-economic environment, Huawei was able to record a strong performance in 2009 because of its customer-centric innovation strategy, which enables delivery of sophisticated, high-quality and scalable network solutions that better meet the business challenges of operators.

For instance, Huawei's 'Single-RAN' wireless solution, which integrates multiple network systems into one single platform, has been embraced by 30 operators globally.

"Operators are looking to Huawei because of our unique value proposition of rapidly delivering robust solutions that address the business challenges of our customers through innovation. Our solutions improve network quality, reduce network maintenance expenditure and protect our customer's return on investments by 'future-proofing' their networks. It is why Huawei is now a partner-of choice for 45 of the world's top 50 operators - up from 36 in 2008,"

said Yi Xiang, President for Middle East, Huawei.

"We see our business momentum continuing in 2010 and expect year-on-year revenue growth of 20% driven by increased deployments of mobile and fixed broadband networks, further take-up of customized smart devices, and higher demand for professional managed services. In the Middle East where we have experienced a 20% growth, our major strategy, innovation and technology is based on our focus to support our customers' needs, demands and challenges. The growth of mobile broadband and evolution to LTE are based on our SingleRAN solution which, as an industry first, provides a uniquely convergent solution for all foreseeable primary network needs," Yi Xiang added.

Comprehensive initiatives to improve process efficiency and manage costs in 2009 saw total expense ratio (total operating expenses and other income as a percentage of revenue) decline 1.4% year-over-year.

Huawei will continue to improve its operational efficiency by adopting professional best practices through implementation of organization transformation programs such as 'Integrated Financial Services' with IBM and 'Lead to Cash' with Accenture. Additionally, Huawei is moving towards a more decentralized structure that empowers employees, particularly those who serve customers directly, with greater flexibility to better respond to customer requirements.