Nationz Scales Up Production of TD-LTE Chips
CCTIME, 4/20/12
In a public filing released today, Chinese security and telecommunications chip manufacturer Nationz Technologies (300077.SZ) announced that it has begun large-scale production and small-scale shipments of multi-mode (TD-LTE/FDD-LTE/TD-SCDMA/HSPA+) multi-band (1.4GHz-2.7GHz) TD-LTE radio chips. The company has also completed design for multi-mode, multi-band data card/Wi-Fi/CPE terminal solutions and products in partnership with LTE baseband chip companies, and will provide these to TD-LTE terminal manufacturers for use in products to be reviewed in the second phase of China Mobile's (NYSE: CHL; 0941.HK) laboratory testing of TD-LTE products, and for large-scale production for the commercial trial phase of TD-LTE testing.
Nationz also announced its Q1 2012 performance figures. The company had operating revenues of RMB 121.7 mln, a PoP decline of 28.76%. Net profits were RMB 22.1 mln, a 47.51% decline. Declines were due primarily to a 47% drop in USB key security controllers in Q1, as well as a relatively sharp decline in sales prices forced by heightened industry competition. While sales in other product lines saw an upswing during the same period, they made little contribution to revenues during Q1 and will require Nationz to foster market demand moving forward.
Sales revenues for Nationz' mobile payment products increased 368% PoP. In particular, the Shenzhen Unicom "Shouji Shenzhen Tong" RFID-SIM payment service currently has more than 500,000 users and is growing at a rate of roughly 2,000 new subscribers per month. Shenzhen is China's largest NFC mobile payment market by service users.
Nationz has developed a fast, low-cost upgrade solution for wireless IC card readers allowing existing 13.56 MHz antennae to be quickly and easily upgraded to support communications in both the 13.56 MHz and 2.4 GHz bands, addressing the current lack of support for 2.4 GHz communications and helping to promote the standard. Nationz will build on its experience with commercial applications of its technologies in the Shouji Shenzhen Tong service in seeking to copy and promote the model in other markets around the country.
Keywords: China Mobile wireless mobile payment FDD-LTE multi-mode CHL TD-LTE TD-SCDMA USB 0941.HK Nationz 300077.SZ Q1 2012 contactless payment 4G profit revenue chipmaker
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