Z-Com, a Taiwan-based maker of broadband wireless Internet-access devices and provider of wireless/mobile data solutions, aims to land orders from China Mobile, China's largest mobile telecom carrier, to account for 30% of its Wi-Fi hot-spot equipment procurements in 2013, Z-Com said at a June 4 investors conference.
Z-Com, through its China-based subsidiary Nanjing Z-Com Wireless, has been a main supplier of Wi-Fi hot-spot equipment and access point (AP) devices for China Mobile, used to off-load TD-SCDMA data traffic, company president John Hsieh said. China Mobile takes up about 90% of equipment shipped in the China market, Hsieh indicated.
In addition to indoor Wi-Fi hot-spot equipment and AP devices, China Mobile has been establishing outdoor AP devices in rural areas in China to serve as wireless last-mile connections with the main fixed-line Internet network, Z-Com said. Z-Com has cooperated with ZDC, a joint venture established by Nanjing Z-Com Wireless, to begin shipments of last-mile solutions, including outdoor AP devices, wireless controllers and terminal wireless routers, to China Mobile.
Currently, 49.4% of Z-Com's consolidated revenues come from Wi-Fi hot-spot equipment and AP devices used by mobile telecom carriers, 21.6% from consumer WLAN products, 16.2% from wireless last-mile solution products and 12.8% from devices for Internet of Things applications.
Z-Com recorded consolidated revenues of NT$372 million (US$12.5 million), gross margin of 19.84%, net loss of NT$33 million and net loss per share of NT$0.47 for the first quarter of 2013.
Z-Com will be listed on the local over-the-counter (OTC) stock market at a tentative price of NT$16 per share on June 25.
Article translated by Adam Hwang
