Just a little over a week after ZTE Corp. was slammed with a potentially catastrophic ban by U.S authorities, the company has released its financial statement for the first quarter of 2018. Surprisingly, the company still posted a 39 percent rise in first-quarter net profit which was attributed to improved sales in its telecom equipment and consumer businesses.

Unfortunately, the consumer business is about crumbling under the weight of the U.S sanctions which prevents any U.S company from selling made in American parts and software to the Chinese company. U.S. firms are estimated to provide 25 to 30 percent of components used in ZTE products such as smartphones and telecommunication network equipment. ZTE has responded, condemning the ban as unacceptable and that it threatened its existence.

Read Also: ZTE’s Recent Patent Filling is For Yet Another Smartphone With Two Display Notches

ZTE admits that it was pretty difficult to assess the impact of the U.S. sales ban on its latest financial result. Bu the financial report shows the company’s profit for January to March reached 1.69 Billion yuan ($267 million), up from 1.2 billion yuan in the same period last year. It is difficult to tell if ZTE will still record profits in subsequent quarters of the year. Already, the ban has led to a suspension in trading of ZTE’s mainland- and Hong Kong-listed shares and that suspension remains in effect s at the time of writing this article. Also, Chinese mutual fund managers have since cut the value of ZTE stock in their portfolios by 20 to 30 percent. We sincerely hope this could be resolved amicably soon. Even if the company survives the next few quarters, how long can it hold on until the ban elapses in seven years time?

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Taiwanese fabless chipmaker MediaTek has released its unaudited financial report for the first quarter of 2018 showing the company’s sales revenue for January, February and March. The chipmaker continues to struggle to regain its profitability as a result of a decline in sales especially since losing out completely in the flagship chip segment to rival chipmaker – Qualcomm.

The financial statement shows that the company recorded a cumulative income of NTD 49,654 million (~$1.7 million USD) for the three months. This is 11.46% lower than the NTD56,083 million which the company posted in Q1 2017. However, the company can take out some positives from the improved sales Month on Month recorded in March, compared to January and February 2018. In January 2018, the company recorded a total of NTD 16,835 million in revenue which is an 8.07% drop Year on Year. Revenue recorded in February declined drastically to NTD 12,708 million representing a 25.03% slump YoY. However, the company’s fortunes rebounded in March with a revenue of NTD 20,110 million which is still 3.40% lower than the company’s March 2017 revenue. But the revenue in March represented a 58.24% Month on Month (MoM) increase in sales over February 2018.

Read Also: Report: Helio P60 Chipset Will Steer MediaTek’s Q2 2018 Sales

MediaTek’s revenue is expected to continue improving this month, especially since its latest Helio P60 midrange chip is getting featured on more and more smartphones. Analysts believe the Helio P60 and perhaps the P70 will play key roles in boosting the company’s revenue in the second quarter.

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