China Techfaith Wireless

[Press Release] TechFaith Reports First Quarter 2012 Financial Results

22 May 2012 12:39:00 GMT

China TechFaith Wireless Communication Technology Limited (CNTF) ("TechFaith" or the "Company") today announced unaudited financial results for the first quarter ended March 31, 2012.

For the first quarter of 2012, TechFaith reported net revenue of US$42.7 million compared to US$81.7 million in the fourth quarter of 2011 and US$78.7 million in the first quarter of 2011. This is in line with the Company's prior guidance which stated that revenue in the first quarter of 2012 would be in the range of US$41 million to US$45 million. The revenue decline is primarily due to the material impact of seasonality, higher competition and lower demand levels for mobile phones in China. Gross profit for the first quarter of 2012 was US$10.8 million, compared to US$19.1 million in the fourth quarter of 2011 and US$25.3 million in the first quarter of 2011. Gross margin for the first quarter of 2012 was 25.4%, compared to 23.4% in the fourth quarter of 2011 and 32.1% in the first quarter of 2011. The decline in gross margin on a sequential and year-over-year basis is attributed to lower revenue and increased unit costs. Net loss attributed to TechFaith for the first quarter of 2012 was US$0.4 million, or a US$0.01 loss per basic and diluted weighted average outstanding ADS, compared to net income of US$2.7 million, or US$0.05 per basic and diluted weighted average outstanding ADS in the fourth quarter of 2011, and net income of US$13.8 million or US$0.26 per basic and diluted weighted average outstanding ADS in the first quarter of 2011.

Ms. Ouyang Yuping, TechFaith's Chief Financial Officer, said, "We had an extremely challenging quarter for our business as lower demand in our Original Developed Product (ODP) segment, combined with our fixed operating costs structure, resulted in a net loss for the quarter. Our operating structure is able to support revenues considerably higher than US$100 million per quarter, which results in absorption issues with the current lower revenue levels. We are working to better align our resources to the current business environment, including potential cost reduction measures. "

Mr. Deyou Dong, President and Chief Operating Officer of TechFaith, said "Our focus is on continuing to develop commercially attractive mobile phones and phones targeting niche segments, like our ruggedized outdoor smart phones. We will continue to work to expand our sales volumes through our unique ruggedized smart phones and our branded mobile phones business which can contribute to our long-term strategy."

Mr. Defu Dong, Chairman and Chief Executive Officer of TechFaith, said, "For our game business, we intend to focus on strengthening and building up our customer base. We have successfully navigated business cycles before and are confident we can adjust our business to current demand levels."

Second Quarter of 2012 Outlook

The below forecast is TechFaith's current and preliminary view, which is subject to change. TechFaith currently expects total revenue for the second quarter of 2012 to be in the range of US$32.0 million to US$36.0 million.

Investor Conference Call / Webcast Details

TechFaith will hold a conference call on Tuesday, May 22, 2012 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Tuesday, May 22, 2012 in Beijing). The dial-in phone number is +1-617-213-8055 or +1-866-578-5771. The conference call passcode is 17104542. A live webcast of the conference call will also be available on TechFaith's website at www.techfaithwireless.com.

A replay of the call will be available approximately 2 hours after the conclusion of the live call through 10 p.m. U.S. Eastern Time on May 29, 2012, (10 a.m., May 30, 2012 in Beijing) by telephone at +1-617-801-6888. To access the replay, use passcode 87571767. A webcast replay will also be available at http://www.techfaithwire....

About TechFaith

TechFaith (CNTF) has three primary businesses. The Company is a leading global ODP (Original Developed Product) provider for global mobile handsets market. Under its TecFace brand, the Company is a leading developer of specialized mobile phones for differentiated market segments, including the rapidly growing Smartphone market targeting users and Operators through its TecFace brand; Outdoor and Sports enthusiasts through its Jungle brand; and the Teen market through licensed brands. Under the Company's 17Vee brand, the Company has built a leading, intellectual property based somatic gaming business ranging from Bluetooth enabled somatic gaming controllers and software to a recently launched proprietary set-top somatic game box. For more information, please visit www.techfaithwireless.com, www.17vee.com and www.798game.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident," "outlook" and similar statements. Among other things, the business outlook and strategic and operational plans of TechFaith and management quotations contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. TechFaith does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

CONTACTS:

In China:
Jay Ji

China Techfaith Wireless Communication Technology Limited

Tel: 86-10-5822-8390

ir@techfaith.cn

In the U.S.:
David Pasquale

Global IR Partners
Tel: +1 914-337-8801

cntf@globalirpartners.com

[Press Release] TechFaith Reports Fourth Quarter and Full Year 2011 Financial Results

29 Feb 2012 12:06:00 GMT

China TechFaith Wireless Communication Technology Limited (NASDAQ: CNTF) ("TechFaith" or the "Company") today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2011.

For the fourth quarter of 2011, TechFaith reported net revenue of US$81.7 million, a 6.2% increase compared to US$76.9 million in the fourth quarter of 2010 due to increased sales volume in the branded mobile phone segment and higher revenue from the Company's motion gaming business. Gross profit for the fourth quarter of 2011 was US$19.1 million, an 11.2% decrease compared to US$21.5 million in the same quarter last year, due to a materials cost increase combined with a higher inflation rate in China. As a result, gross margin for the fourth quarter of 2011 was 23.4% compared to 27.9% in the same quarter in 2010. Operating expense for the fourth quarter of 2011 was US$15.9 million compared to US$10.2 million in the fourth quarter of 2010, due to increased sales and marketing expenses in support of higher branded mobile phone sales and the Company's motion gaming business. Net income attributed to TechFaith for the fourth quarter of 2011 was US$2.7 million or US$0.05 per basic and diluted weighted average outstanding ADS, compared to US$8.9 million or US$0.17 per basic and diluted weighted average outstanding ADS in the fourth quarter of 2010.

For the full year ended December 31, 2011, TechFaith reported net revenue of US$323.8 million, a 19.1% increase compared to US$271.9 million for the full year 2010, led by growth in the Company's branded mobile sales and motion gaming business. Gross profit for the full year 2011 was US$85.2 million, a 27.0% increase compared to US$67.1 million for the full year 2010. Gross margin for the full year 2011 was 26.3% compared to 24.7% for the full year 2010. Operating expense for the full 2011 was US$50.2 million compared to US$32.3 million for the full year 2010, led by higher sales and marketing expenses in support of higher branded mobile phone sales and its motion gaming business. Net income for the full year 2011 was US$27.1 million or US$0.51 per basic and diluted weighted average outstanding ADS, compared to net income of US$27.8 million or US$0.57 and US$0.50 per basic and diluted weighted average outstanding ADS for the full year 2010.

Mr. Defu Dong, Chairman and chief executive officer of TechFaith, said, "TechFaith achieved nearly 20% revenue growth in 2011, as our branded smartphones, mobile phones and ODP (Original Developed Products) helped differentiate us in a challenging global marketplace. We saw pressure on our business throughout the year and expect this to continue in 2012, as the global economic environment has created nearly constant headwinds with weakness in the key end markets we serve."

Ms. Ouyang Yuping, TechFaith's chief financial officer, said, "We continue to focus on business opportunities in the ODP, branded mobile phone and gaming markets. We are working to put the appropriate resources in place to support the areas of our business that have the highest potential, while also actively managing our operating expenses. Our strong balance sheet gives us the continued ability to support the long-term business initiatives and strategy central to our long-term success, despite continued expected near-term market weakness."

Mr. Deyou Dong, President and chief operating officer of TechFaith, said, "We have made considerable headway in our efforts to establish TechFaith as a globally recognized brand. Our success is evidenced by the geographic mix of our revenue 2011, with shipments of our phones to diverse markets including China, South East Asia, Europe, Latin America and Japan. We continue to gain attention due to the value prospect we offer with tailored phones and compelling enterprise solutions. Our history of design expertise allows us to move quickly and to deliver the technically sound, tailored solutions that customers are seeking."

First Quarter 2012 Outlook

The following forecast reflects the expected material impact of seasonality in the first quarter of 2012. The forecast is TechFaith's current and preliminary view, which is subject to change. TechFaith currently expects total revenue for its ODP, branded and gaming businesses to be in the range of US$41 million to US$45 million in the first quarter of 2012. The anticipated decline from the fourth quarter of 2011 and recent revenue levels is driven primarily by the expected material impact of seasonality in the first quarter, combined with higher competition and expected lower overall demand for its ODP and branded mobile phone business.

Investor Conference Call / Webcast Details

TechFaith will hold a conference call on Wednesday, February 29, 2012 at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Wednesday, February 29, 2012 in Beijing). The dial-in phone number is +1-617-786-2962 or +1-800-901-5213. The conference call passcode is 26631902. A live webcast of the conference call will also be available on TechFaith's website at www.techfaithwireless.com.

A replay of the call will be available approximately 2 hours after the conclusion of the live call through 10:00 p.m. U.S. Eastern Time on March 6, 2012, (11:00 a.m., March 7, 2012 in Beijing) by telephone at +1-617-801-6888. To access the replay, use passcode 23416986. A webcast replay will also be available at http://www.techfaithwireless.com.

About TechFaith

TechFaith (NASDAQ: CNTF) has three primary businesses. The Company is a leading global ODP (Original Developed Product) provider for global mobile handsets market. Under its TecFace brand, the Company is a leading developer of specialized mobile phones for differentiated market segments, including the rapidly growing Smartphone market targeting users and Operators through its TecFace brand; Outdoor and Sports enthusiasts through its Jungle brand; and the Teen market through licensed brands. Under the Company's 17Vee brand, the Company has built a leading, intellectual property based somatic gaming business ranging from Bluetooth enabled somatic gaming controllers and software to a recently launched proprietary set-top somatic game box. For more information, please visit www.techfaithwireless.com, www.17vee.com and www.798game.com.

Safe Harbor Statement

CONTACTS:
In China: Jay Ji China Techfaith Wireless Communication Technology Limited Tel: 86-10-5822-8390 ir@techfaith.cn	In the U.S.: David Pasquale Global IR Partners Tel: +1 914-337-8801 cntf@globalirpartners.com

CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands of U.S. Dollars, except share and per share/ADS data and unless otherwise stated)

	Three Months Ended		Three Months Ended		Twelve Months Ended
September 30		December 31		December 31
	2011		2011	2010		2011	2010
				(As adjusted)(1)
Revenues:
ODP	$52,348		$50,711	$55,982		$212,784	$222,549
Brand name phone sales	17,168		19,274	14,366		67,535	38,462
Game	11,131		11,702	6,527		43,481	10,866
Total net revenues	$80,647		$81,687	$76,875		$323,800	$271,877

Cost of revenues:
ODP	$44,423		$45,062	$45,646		$174,991	$180,517
Brand name phone sales	10,379		11,916	7,706		41,280	22,066
Game	6,731		5,630	2,067		22,293	2,202
Total cost of revenues	$61,533		$62,608	$55,419		$238,564	$204,785

Gross Profit	$19,114		$19,079	$21,456		$85,236	$67,092

Operating expenses:
General and administrative	$3,233		$4,453	$5,591		$19,089	$14,711
Research and development	3,687		3,820	2,853		13,541	11,613
Selling and marketing	4,425		7,652	1,771		17,196	6,084
Impairment of goodwill	606		-	-		606	-
Exchange gain	(107)		(69)	(65)		(241)	(85)
Total operating expenses	$11,844		$15,856	$10,150		$50,191	$32,323

Government subsidy income	111		36	8		224	159
Other operating income	175		683	767		2,824	1,109

Income from operations	$7,556		$3,942	$12,081		$38,093	$36,037

Interest expense	-		-	-		-	(1)
Interest income	362		388	252		1,365	882
Investment income	-		-	142		-	142
Other income (expenses), net	3		(83)	(120)		(79)	(101)
Change in fair value of derivatives embedded in Convertible notes	-		-	-		-	1,280
Change in fair value of put option	-		(150)	(30)		-(150)	(123)
Income before income taxes	$7,921		$4,097	$12,325		$39,229	$38,116
Income tax expenses	(4,249)		(636)	(2,812)		(9,419)	(9,458)
Net income	$3,672		$3,461	$9,513		$29,810	$28,658
Less: net (income) loss attributable to the non-controlling interests	(395)		(776)	(659)		(2,683)	(818)
Net income attributable to TechFaith	$3,277		$2,685	$8,854		$27,127	$27,840

Net income attributable to TechFaith per share
Basic	$0.00		$0.00	$0.01		$0.03	$0.04
Diluted	$0.00		$0.00	$0.01		$0.03	$0.03

Net income attribute to TechFaith per ADS
Basic	$0.06		$0.05	$0.17		$0.51	$0.57
Diluted	$0.06		$0.05	$0.17		$0.51	$0.50

Weighted average shares outstanding
Basic	794,003,193		794,003,193	794,003,193		794,003,193	732,784,822
Diluted	794,003,193		794,003,193	794,003,193		794,003,193	795,843,605

CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands of U.S. Dollars)

	December 31, 2011	September 30, 2011	December 31, 2010

Assets
Current assets:
Cash and cash equivalents	$250,637	$236,297	$198,536
Accounts receivable, net	6,715	9,070	19,241
Amounts due from a related party	-	4,960	8,061
Inventories	7,984	12,466	17,745
Prepaid expenses and other current assets	17,560	9,864	7,997
Deferred tax assets-current	207	179	163
Total current assets	$283,103	$272,836	$251,743

Plant, machinery and equipment, net	$48,977	$48,130	$41,832
Land use right	10,755	8,304	-
Construction in progress	21,002	15,679	2,576
Acquired intangible assets, net	2,327	2,493	2,799
Goodwill	1,242	1,242	1,848
Deferred tax assets-noncurrent	3	-	-
Other Assets	-	-	3,155
Total assets	$367,409	$348,684	$303,953

Liabilities and shareholders' equity
Current liabilities:

Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to China Techfaith Wireless Communication Technology Limited, $nil, $nil and $nil as of December 31, 2010, September 30, 2011 and December, 2011 respectively)	8,792	7,520	7,819
Amounts due to related parties	-	48	46
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to China Techfaith Wireless Communication Technology Limited, $1,272，$841 and $837 as of December 31, 2010, September 30, 2011 and December 31, 2011 respectively)	21,721	17,958	15,195
Advance from customers (including advance from customers of the consolidated variable interest entities without recourse to China Techfaith Wireless Communication Technology Limited, $339, $208 and $202 as of December 31, 2010，September 30, 2011 and December 31, 2011 respectively)	8,492	8,390	7,450
Deferred revenue	219	307	291
Income tax payable (including income tax payable of consolidated variable interest entities without recourse to China Techfaith Wireless Communication Technology Limited, $1,282, $19 and $21 as of December 31, 2010, September 30, 2011 and December 30, 2011 respectively)	1,804	4,094	3,175
Total current liabilities	$41,028	$38,317	$33,976

Long-term loan	290	290	290
Deferred tax liability-non-current	106	114	140

Total liabilities	$41,424	$38,721	$34,406

Shareholders' equity
Paid in capital	$16	$16	$16
Additional paid-in capital	141,667	141,236	139,495
Accumulated other comprehensive income	43,597	40,164	31,098
Statutory reserve	22,631	16,679	16,679
Retained earnings	97,272	100,539	76,097
Total Techfaith shareholders' equity	$305,183	$298,634	$263,385
Noncontrolling interest	$20,802	$11,329	$6,162
Total shareholders' equity	$325,985	$309,963	$269,547
Total liabilities and shareholders' equity	$367,409	$348,684	$303,953

(1) The Company subsequently reconsidered the accounting of the issuance of the Convertible Notes ("Notes") in 2009 and decided to restate its 2009 financial statement to reflect a more proper accounting treatment. Previously, we first allocated a portion of the proceeds to the embedded derivatives at fair value, and then allocated the remaining proceeds to the debt host. Since the fair value of embedded derivatives exceeded the net proceeds of the Notes, a debit amount of US$3.2 million for the debt host was recorded at issuance date. We then accreted the residual amount (the residual amount of the debt host after deducting the embedded derivatives) to the amount due on the redemption of the Notes over the life of the debt instrument assuming no conversion on redemption. Subsequently, to reflect a more proper accounting treatment, we recognized the embedded derivatives at its fair value of US$12.8 million and recognized the difference between that amount and the amount of the net proceeds as a loss upon the issuance of the Notes. As a result, for the three months period ended December 31, 2010, the interest expenses in relation to the Notes was $nil. And for the twelve months period ended December 31, 2010, the interest expense in relation to the Notes was adjusted from US$730,817.0 to US$829.0.

SOURCE China TechFaith Wireless Technology Limited

Source: PR Newswire (February 29, 2012 - 6:30 AM EST)

[Press Release] TechFaith 3Q11 Revenue Exceeds High-End of Prior Guidance

21 Nov 2011 13:38:00 GMT

China TechFaith Wireless Communication Technology Limited (NASDAQ: CNTF - News) ("TechFaith" or the "Company") today announced unaudited financial results for the third quarter ended September 30, 2011 .

For the third quarter of 2011, TechFaith reported net revenue of US$80.6 million , a 17% increase compared to US$68.6 million in the third quarter of 2010, and a 3% decrease compared to US$82.8 million in the second quarter of 2011. Gross margin for the third quarter of 2011 was 24%, which remained the same as in the third quarter of 2010, as compared to 26% in the second quarter of 2011. The decrease in the gross margin from the second quarter of 2011 is attributed to a change in TechFaith's product mix, as the Company had lower sales of GSM feature phones from its ODP business during the third quarter of 2011.

Net income attributed to TechFaith for the third quarter of 2011 was US$3.3 million or US$0.06 per basic and diluted weighted average outstanding ADS, compared to US$4.5 million or US$0.09 per basic and diluted weighted average outstanding ADS in the third quarter of 2010, compared to US$7.3 million or US$0.14 per basic and diluted weighted average outstanding ADS in the second quarter of 2011. The decrease in net income from the second quarter is the result of lower gross margins (as discussed above) and higher income tax expense attributed to the change in the Company's estimated annual effective tax rate.

Ms. Ouyang Yuping, TechFaith's CFO, said, "We were able to achieve revenue above the high-end of our prior guidance in a weaker global economic environment and under the increased pricing pressure in several of the markets we serve. Higher demand levels for Android-based mobile phones and continued developments in our branded mobile phone business and motion gaming business helped us to partially offset the market pressure. We are pleased that we were able to keep our gross margin relatively stable at 24% despite such uncertain market conditions. This performance reflects the success of our higher margin branded mobile phone and motion gaming businesses. In addition, we remained focused on cost control and operating efficiencies, which helped us to further strengthen our balance sheet due to the continued healthy cash flow from our operations. We ended the third quarter of 2011 with US$4.46 per ADS in cash and cash equivalents compared to US$4.17 per ADS at the end of the second quarter of 2011."

Mr. Deyou Dong , President and COO of TechFaith, said, "We are pleased with the continued success we are having in various markets worldwide. Our ability to tailor mobile solutions in the enterprise and branded market is a competitive advantage for TechFaith, which led to additional orders for our leading Android-based smartphone models in South East Asia , Latin America , Japan and domestic China market. We further strengthened our product line-up with the launching of several innovative new models, including Titan, Tracker, PAD, Qphone and Eagle, in the third quarter of 2011. All are Android-based 3G smartphones. Additionally, we have leveraged the success of our TecFace-branded mobile phone business beyond China and extended into the international market with the well-received launching of new products and stronger marketing support. Our efforts have positioned TechFaith for long-term business success."

Fourth Quarter of 2011 Outlook

The fourth quarter 2011 outlook reflects TechFaith's current and preliminary view, which is subject to change. Based on current market conditions, the Company expects its revenue for the fourth quarter of 2011 to be in the range of US$78 million to US$81 million , with gross margin levels similar to those for the third quarter of 2011.

Mr. Defu Dong , Chairman and CEO of TechFaith, added, "We entered the fourth quarter in a very solid financial position which can help us navigate our course among continued market volatility. We continue to build momentum with customers in our mobile solutions business, branded mobile phone business and motion gaming business. We believe that our efforts would more readily translate to growth in our financial results when the broader market environment improves. We will remain conservative in our outlook and approach and maintain strict cost controls in light of the uncertain global economic environment. At the same time, we will continue to invest in the research and development and sales and marketing efforts that are critical to the support of our customers and brands while focusing on profitability. Strategic investments made in our business today will, we expect, fuel our growth when the market situation improves, as has happened in previous market cycles."

Investor Conference Call / Webcast Details

TechFaith will hold a conference call on Monday, November 21, 2011 at 8:00 a.m. U.S. Eastern Time ( 9:00 p.m. Monday, November 21, 2011 in Beijing ). The dial-in phone number is +1-617-786-2960 or +1-800-884-5695, with conference passcode 77232985. A live webcast of the conference call will also be available on TechFaith's website at www.techfaithwireless.com.

A replay of the call will be available approximately 2 hours after the conclusion of the live call by telephone at +1-617-801-6888, with passcode 15800415. A webcast replay will also be available at www.techfaithwireless.com.

About TechFaith

TechFaith (NASDAQ: CNTF - News) has three primary businesses. The Company is a leading global mobile solutions provider for global mobile handsets market (Which previous called ODP (Original Developed Product) business)). Under its TecFace brand, the Company is a leading developer of specialized mobile phones for differentiated market segments, including the rapidly growing Smartphone market targeting users and Operators through its TecFace brand; Outdoor and Sports enthusiasts through its Jungle brand; and the Teen market through licensed brands. Under the Company's 17Vee brand, the Company has built a leading, intellectual property based motion gaming business ranging from Bluetooth enabled motion gaming controllers and software. For more information, please visit www.techfaithwireless.com, www.tecface.com and www.17vee.com.

Safe Harbor Statement

CONTACTS:
In China: Jay Ji China TechFaith Wireless Communication Technology Limited Tel: 86-10-5822-8390 ir@techfaith.cn	In the U.S.: David Pasquale Global IR Partners Tel: +1 914-337-8801 cntf@globalirpartners.com


CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands of U.S. Dollars, except share and per share/ADS data and unless otherwise stated)

	Three Months Ended		Three Months Ended		Nine Months Ended
June 30		September 30		September 30
	2011		2011	2010		2011	2010
				(As adjusted) (1)			(As adjusted) (1)
Revenues:
ODP	$55,917		$52,348	$55,793		$162,073	$166,567
Brand name phone sales	16,179		17,168	11,252		48,261	24,096
Game	10,690		11,131	1,548		31,779	4,339
Total net revenues	$82,786		$80,647	$68,593		$242,113	$195,002

Cost of revenues:
ODP	$45,141		$44,423	$45,753		$129,929	$134,871
Brand name phone sales	10,086		10,379	6,454		29,364	14,360
Game	5,811		6,731	23		16,663	135
Total cost of revenues	$61,038		$61,533	$52,230		$175,956	$149,366

Gross Profit	$21,748		$19,114	$16,363		$66,157	$45,636

Operating expenses:
General and administrative	$6,964		$3,233	$2,980		$14,636	$9,120
Research and development	2,755		3,687	3,001		9,721	8,760
Selling and marketing	2,767		4,425	1,441		9,544	4,313
Impairment of goodwill	-		606	-		606	-
Exchange gain	(69)		(107)	(40)		(172)	(20)
Total operating expenses	$12,417		$11,844	$7,382		$34,335	$22,173

Government subsidy income	77		111	-		188	151
Other operating income	545		175	168		1,258	342

Income from operations	$9,953		$7,556	$9,149		$33,268	$23,956

Interest expense	-		-	(1)		-	(1)
Interest income	338		362	240		977	630
Investment income	-		-	-		883	-
Other income	-		3	-		4	19
Change in fair value of derivatives embedded in Convertible notes	-		-	(3,329)		-	1,280
Change in fair value of put option	-		-	(30)		-	(93)
Income before income taxes	$10,291		$7,921	$6,029		$35,132	$25,791
Income tax expenses	(2,367)		(4,249)	(2,538)		(8,783)	(6,646)
Net income	$7,924		$3,672	$3,491		$26,349	$19,145
Less: net ( income ) loss attributable to the noncontrolling interest	(586)		(395)	964		(1,907)	(159)
Net income attributable to TechFaith	$7,338		$3,277	$4,455		$24,442	$18,986

Net income attributable to TechFaith per share
Basic	$0.01		$0.00	$0.01		$0.03	$0.03
Diluted	$0.01		$0.00	$0.01		$0.03	$0.02

Net income attribute to TechFaith per ADS
Basic	$0.14		$0.06	$0.09		$0.46	$0.40
Diluted	$0.14		$0.06	$0.09		$0.46	$0.34

Weighted average shares outstanding
Basic	794,003,193		794,003,193	734,884,532		794,003,193	712,154,456
Diluted	794,003,193		794,003,193	734,889,995		794,003,193	784,340,131

CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands of U.S. Dollars)

	September 30, 2011	June 30, 2011	December 31, 2010
			(As adjusted) (1)
Assets
Current assets:
Cash and cash equivalents	$236,297	$220,546	$198,536
Accounts receivable	9,070	12,028	19,241
Amounts due from a related party	4,960	3,345	8,061
Inventories	12,466	16,211	17,745
Prepaid expenses and other current assets	9,864	10,336	7,997
Deferred tax assets-current	179	165	163
Total current assets	$272,836	$262,631	$251,743

Plant, machinery and equipment, net	$48,130	$48,303	$41,832
Land use right	8,304	8,236	-
Construction in progress	15,679	15,471	2,576
Acquired intangible assets, net	2,493	2,591	2,799
Goodwill	1,242	1,848	1,848
Other Assets	-	-	3,155
Total assets	$348,684	$339,080	$303,953

Liabilities and shareholders ' equity
Current liabilities:

Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to China TechFaith Wireless Communication Technology Limited, $nil, $nil and $nil as of December 31, 2010, June 30, 2011 and September 30, 2011 respectively)	7,520	9,020	7,819
Amounts due to related parties	48	47	46
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to China TechFaith Wireless Communication Technology Limited, $1,272 , $832 and $841 as of December 31, 2010, June 30, 2011 and September 30, 2011 respectively)	17,958	18,825	15,195
Advance from customers (including advance from customers of the consolidated variable interest entities without recourse to China TechFaith Wireless Communication Technology Limited, $339, $199 and $208 as of December 31, 2010 , June 30, 2011 and September 30, 2011 respectively)	8,390	8,895	7,450
Deferred revenue	307	307	291
Income tax payable (including income tax payable of consolidated variable interest entities without recourse to China TechFaith Wireless Communication Technology Limited, $1,282, $22 and $19 as of December 31, 2010, June 30, 2011 and September 30, 2011 respectively)	4,094	2,519	3,175
Total current liabilities	$38,317	$39,613	$33,976

Long-term loan	290	290	290
Deferred tax liability-noncurrent	114	123	140

Total liabilities	$38,721	$40,026	$34,406

Shareholders ' equity
Paid in capital	$16	$16	$16
Additional paid-in capital	141,236	140,893	139,495
Accumulated other comprehensive income	40,164	36,530	31,098
Statutory reserve	16,679	16,679	16,679
Retained earnings	100,539	97,262	76,097
Total TechFaith shareholders ' equity	$298,634	$291,380	$263,385
Noncontrolling interest	$11,329	$7,674	$6,162
Total shareholders ' equity	$309,963	$299,054	$269,547
Total liabilities and shareholders ' equity	$348,684	$339,080	$303,953

(1) The Company subsequently reconsidered the accounting of the issuance of the Notes in 2009 and decided to restate its 2009 financial statement to reflect a more proper accounting treatment. Previously, we first allocated a portion of the proceeds to the embedded derivatives at fair value, and then allocated the remaining proceeds to the debt host. Since the fair value of embedded derivatives exceeded the net proceeds of the Notes, a debit amount of US$3.2 million for the debt host was recorded at issuance date. We then accreted the residual amount (the residual amount of the debt host after deducting the embedded derivatives) to the amount due on the redemption of the Notes over the life of the debt instrument assuming no conversion on redemption. Subsequently, to reflect a more proper accounting treatment, we have recognized the embedded derivatives at their fair value of US$12.8 million and recognized the difference between that amount and the amount of the net proceeds as a loss upon the issuance of the Notes. As a result, for the three months periods ended September 30, 2010, the interest expense in relation to the Notes was adjusted from US $200,541.0 to US$553.0 a nd the net income was adjusted from US$4.3 million to US $4 .5 million. And for the nine months periods ended September 30, 2010, the interest expense in relation to the Notes was adjusted from US$ 730,817.0 to US$829.0 and the net income was adjusted from US$ 18.4 million to US $19.0 million.

[Press Release] TechFaith Reports 1Q2011 Revenue Increases 29% Compared to 1Q2010; Gross Margin

24 May 2011 11:35:00 GMT

BEIJING, May 24, 2011 /PRNewswire-Asia/ -- China TechFaith Wireless Communication Technology Limited (NASDAQ: CNTF) ("TechFaith" or the "Company") today announced unaudited financial results for the first quarter ended March 31, 2011.

For the first quarter of 2011, TechFaith reported net revenue of US$78.7 million, a 29% increase compared to US$60.9 million in the first quarter of 2010, and a 2% increase compared to US$76.9 million in the fourth quarter of 2010. Gross margin for the first quarter of 2011 improved to 32% compared to 22% in the same quarter last year and 28% in the previous quarter.

Income from operations for the first quarter of 2011 was US$15.8 million, a 151% increase compared to US$6.3 million in the same quarter last year, and a 31% increase compared to US$12.1 million in the previous quarter. Net income attributed to TechFaith for the first quarter of 2011 was US$13.8 million or US$0.26 per basic and diluted weighted average outstanding ADS, compared to US$7.1 million or US$0.15 per basic weighted average outstanding ADS and US$0.07 per diluted weighted average outstanding ADS in the first quarter of 2010, compared to US$8.9 million or US$0.17 per basic and diluted weighted average outstanding ADS in the fourth quarter of 2010.

TechFaith has restated the 2009 financial statements as a result of the Company's application of a more appropriate accounting treatment in relation to its 8% senior secured convertible promissory notes (the "Notes") issued to affiliates of IDGVC Partners in 2009. TechFaith will explain the background and details of the accounting treatment in the Company's annual report on Form 20-F for 2010 to be filed with the Commission. As a result of the restatement, the financial results for the first three quarters of 2010 were adjusted: the interest expense in relation to the Notes was adjusted from US$265,000 to US$56.0 and the net income for the three months period ended March 31, 2010 was adjusted from US$6.9 million to US$7.1 million. The Notes were subsequently converted into ordinary shares in the Company and one of the Company's subsidiaries in September 2010, pursuant to the original conversion terms. The Company does not expect the restatement and adjustment will have any impact to the Company's future financial results and positions.

Ms Ouyang Yuping, TechFaith's CFO, said "This was another strong quarter for us. Our gross margin of 32% reflects the continued success in our sales of higher margin products to our ODP customers, growth in our branded mobile phone business and growth in our gaming business. Continued success in our brand name phone sales business was led by strong demand from customers in the China market. Importantly, we continue to strengthen our financial position in order to securely support the Company's future growth opportunities in the domestic China market and worldwide. We ended the first quarter of 2011 with approximately US$4.06 per ADS in cash and cash equivalents."

Mr. Deyou Dong, President and COO of TechFaith in charge of the Company's mobile phone business, said, "Demand for our mobile phone products remains strong based on our innovative offerings, quality performance, functionality and total value offered by TechFaith. We plan to launch an additional six models in the second quarter of 2011, of which the majority will be smartphones as we leverage continued demand for Android-based solutions. We are also seeing increased traction in our traditional ODP mobile phone business, with recent wins in the area of mobile solutions for corporate clients in the China market, the U.S. market and the Latin American market. This directly reflects our sales and marketing strategy. Overall, we are well positioned in the market, which has substantial growth potential, given our capabilities to tailor hardware and software solutions to meet customers' specific needs."

Mr. Defu Dong, Chairman and CEO of TechFaith, added, "We have achieved continued progress in our mobile phone business and our motion gaming business, with new hardware offerings and our recent announcement of three major content licensing agreements. We have a powerful, clear business vision, under which our mobile phone business focuses on mobile solutions providing business and brand name phone sales business; and our gaming business focuses on the motion gaming line. For the motion gaming business, we have achieved further significant growth led by our unique products which differentiate TechFaith. Sales of our motion gaming devices were also much higher, as we have reached unit sales approximately 40,000 to 50,000 per month. We expect the sales of motion gaming devices to further increase as we will launch our 17Vee motion gaming console box in the second quarter of 2011. We have had positive responses in the pre-launch phase of our 17Vee motion gaming box. We expect the growth in our motion gaming business, together with the continued development in our mobile phone businesses, will help drive further growth in 2011."

Second Quarter 2011 Outlook

The below forecast reflects TechFaith's current and preliminary view, which is subjected to change. TechFaith currently expects revenue for the second quarter of 2011 to be in the range of US$82.0 million to US$84.0 million, with gross margin levels similar to the first quarter of 2011.

Investor Conference Call / Webcast Details

TechFaith will hold a conference call on Tuesday, May 24, 2011 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Tuesday, May 24, 2011 in Beijing). The dial-in phone number is +1-617-614-3450. The conference call passcode is 46471106. A live webcast of the conference call will also be available on TechFaith's website at www.techfaithwireless.com.

A replay of the call will be available approximately 2 hours after the conclusion of the live call through 10:00 a.m. U.S. Eastern Time on May 31, 2011, (10:00 p.m., May 31, 2011 in Beijing) by telephone at +1-617-801-6888. To access the replay, use passcode 40284375. A webcast replay will also be available at http://www.techfaithwireless.com.

About TechFaith

TechFaith (NASDAQ: CNTF) has three primary businesses. Under the TechFaith umbrella, the Company is a leading global mobile solutions provider for global mobile handsets market (Which previous called ODP (Original Developed Product) business)). Under its TecFace brand, the Company is a leading developer of specialized mobile phones for differentiated market segments, including the rapidly growing Smartphone market targeting users and Operators through its QIGI brand; Outdoor and Sports enthusiasts through its Jungle brand; and the Teen market through licensed brands. Under the Company's 17Vee brand, the Company has built a leading, intellectual property based motion gaming business ranging from Bluetooth enabled motion gaming controllers and software to a recently launched proprietary set-top motion game box. For more information, please visit www.techfaithwireless.com, www.17vee.com and www.798game.com.

Safe Harbor Statement


CONTACTS:
In China: Jay Ji China TechFaith Wireless Communication Technology Limited Tel: 86-10-5822-8390 ir@techfaith.cn	In the U.S.: David Pasquale Global IR Partners Tel: +1 914-337-8801 cntf@globalirpartners.com


CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. Dollars, except share and per share/ADS data and unless otherwise stated)

		Three Months Ended
	March 31		December 31
		2011	2010	2010
			(As adjusted)⁽¹⁾
Revenues:
ODP		$53,808	$54,438	$55,982
Brand name phone sales		14,914	5,211	14,366
Game		9,958	1,257	6,527
Total net revenues		78,680	60,906	76,875

Cost of revenues:
ODP		40,365	44,259	45,646
Brand name phone sales		8,899	3,154	7,706
Game		4,121	70	2,067
Total cost of revenues		53,385	47,483	55,419

Gross Profit		25,295	13,423	21,456

Operating expenses:
General and administrative		4,443	2,947	5,526
Research and development		3,279	2,995	2,853
Selling and marketing		2,352	1,289	1,771
Total operating expenses		10,074	7,231	10,150

Government subsidy income		538	100	8
Other operating income		-	5	767

Income from operations		15,759	6,297	12,081

Interest expense		-	-	-
Interest income		277	184	252
Investment income		883	-	142
Other income (expense), net		1	-	(120)
Change in fair value of derivatives embedded in convertible notes		-	3,343	-
Change in fair value of put option		-	(33)	(30)
Income before income taxes		16,920	9,791	12,325
Income tax expenses		(2,167)	(1,933)	(2,812)
Net income		14,753	7,858	9,513
Less: net income attributable to the noncontrolling interest		(926)	(806)	(659)
Net income attributable to TechFaith		$13,827	$7,052	$8,854

Net income attributable to TechFaith per share
Basic		$0.02	$0.01	$0.01
Diluted		$0.02	$0.00	$0.01

Net income attribute to TechFaith per ADS
Basic		$0.26	$0.15	$0.17
Diluted		$0.26	$0.07	$0.17

Weighted average shares outstanding
Basic		794,003,193	685,868,082	794,003,193
Diluted		794,003,193	811,983,427	794,003,193


CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. Dollars)


	March 31, 2011	March 31, 2010	December 31, 2010
		(As adjusted)⁽¹⁾	(As adjusted)⁽¹⁾
Assets
Current assets:
Cash and cash equivalents	$214,732	$162,421	$198,536
Accounts receivable	17,275	17,740	19,241
Notes receivable	52	-	-
Amounts due from a related party	5,926	2,622	8,061
Inventories	17,493	24,178	17,745
Prepaid expenses and other current assets	16,597	13,666	7,997
Deferred tax assets-current	160	-	163
Total current assets	272,235	220,627	251,743

Plant, machinery and equipment, net	42,209	20,245	41,832
Construction in progress	3,444	23,965	2,576
Acquired intangible assets, net	2,688	3,235	2,799
Goodwill	1,848	1,848	1,848
Other asset	-	-	3,155
Total assets	322,424	269,920	303,953

Liabilities and equity
Current liabilities:

Current portion of long term payable	-	687	-

Accounts payable(including accounts payable of the consolidated variable interest entities without recourse to China TechFaith Wireless Communication Technology Limited, $12, $nil and $nil as of March 31, 2010, December 31, 2010 and March 31, 2011, respectively)	9,358	9,952	7,819

Amounts due to related parties	46	701	46

Accrued expenses and other current liabilities(including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to China TechFaith Wireless Communication Technology Limited, $800, $1,272and $856 as of March 31, 2010, December 31, 2010 and March 31, 2011, respectively)	15,056	10,408	15,195

Advance from customers(including advance from customers of the consolidated variable interest entities without recourse to China TechFaith Wireless Communication Technology Limited, $379, $339 and $174 as of March 31, 2010, December 31, 2010 and March 31, 2011, respectively)	8,623	5,494	7,450

Deferred revenue (including deferred revenue of the consolidated variable interest entities without recourse to China TechFaith Wireless Communication Technology Limited, $10, $nil and $nil as of March 31, 2010, December 31, 2010 and March 31, 2011, respectively)	298	1,031	291

Income tax payable (including income tax payable of consolidated variable interest entities without recourse to China TechFaith Wireless Communication Technology Limited, $732, $1,282 and $167 as of March 31, 2010, December 31, 2010 and March 31, 2011, respectively)	2,332	2,221	3,175
Total current liabilities	35,713	30,494	33,976

Convertible notes and embedded derivatives	-	14,686	-
Long-term loan	290	-	290
Deferred tax liability-noncurrent	131	170	140

Total liabilities	36,134	45,350	34,406

Equity
Ordinary shares	16	14	16
Additional paid-in capital	139,495	126,292	139,495
Accumulated other comprehensive income	33,088	23,801	31,098
Statutory reserve	16,679	10,993	16,679
Retained earnings	89,924	60,995	76,097
Total TechFaith shareholders' equity	279,202	222,095	263,385
Noncontrolling interest	7,088	2,475	6,162
Total equity	286,290	224,570	269,547
Total liabilities and equity	$322,424	$269,920	$303,953

Note:
(1) The Company subsequently reconsidered the accounting of the issuance of the Notes in 2009 and decided to restate its 2009 financial statement to reflect a more proper accounting treatment. Previously, we first allocated a portion of the proceeds to the embedded derivatives at fair value, and then allocated the remaining proceeds to the debt host. Since the fair value of embedded derivatives exceeded the net proceeds of the Notes, a debit amount of US$3.2 million for the debt host was recorded at issuance date. We then accreted the residual amount (the residual amount of the debt host after deducting the embedded derivatives) to the amount due on the redemption of the Notes over the life of the debt instrument assuming no conversion on redemption. Subsequently, to reflect a more proper accounting treatment, we have recognized the embedded derivatives at their fair value of US$12.8 million and recognized the difference between that amount and the amount of the net proceeds as a loss upon the issuance of the Notes. As a result, the interest expense in relation to the Notes was adjusted from US$265,000 to US$56.0 and the net income for the three months period ended March 31, 2010 was adjusted from US$6.9 million to US$7.1 million.

SOURCE China TechFaith Wireless Communication Technology Limited

[Press Release] TechFaith Reports Fourth Quarter and Full Year 2010 Financial Results

02 Mar 2011 11:00:00 GMT

BEIJING, Mar. 2, 2011 /PRNewswire-Asia/ -- China TechFaith Wireless Communication Technology Limited (Nasdaq: CNTF) ("TechFaith" or the Company) today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2010.

Highlights:

4Q10 revenue increased 29% from 4Q09 to US$76.9 million.
4Q10 income from operations increased 317% from 4Q09 to US$12.1 million.
4Q10 net income increased by 187% from 4Q09 to US$8.9 million, representing US$0.17 per basic and diluted weighted average outstanding ADS for 4Q10 compared to US$0.07 and US$0.07, respectively, for 4Q09.
FY10 revenue increased by 29% from FY09 to US$271.9 million.
FY10 net income increased by 333% from FY09 to US$27.3 million, representing US$0.56 and US$0.50 per basic and diluted weighted average outstanding ADS for FY10 compared to US$0.15 and US$0.14, respectively, for FY09.

For the fourth quarter of 2010, TechFaith reported net revenue of US$76.9 million, a 29% increase compared to US$59.8 million in the fourth quarter of 2009, due to strong growth of QIGI branded mobile sales, and strong growth in the Company's gaming business. Gross profit for the fourth quarter of 2010 was US$21.5 million, a 124% increase compared to US$9.6 million in the same quarter last year, due to the strong growth in the Company's QIGI branded mobile phone sales and its gaming business, both of which are higher gross margin businesses. As a result, gross margin for the fourth quarter of 2010 was 28.0% compared to 16.1% in the same quarter of 2009. Income from operations for the fourth quarter of 2010 was US$12.1 million -- a Company record level -- representing a 317% increase compared to US$2.9 million in the fourth quarter of 2009, due the above noted growth in the Company's higher gross margin businesses. Net income attributed to TechFaith for the fourth quarter of 2010 was US$8.9 million or US$0.17 per basic and diluted weighted average outstanding ADS, compared to US$3.1 million or US$0.07 per basic and diluted weighted average outstanding ADS in the fourth quarter of 2009.

For the full year ended December 31, 2010, TechFaith reported net revenue of US$271.9 million, a 29% increase compared to US$211.1 million for the full year 2009, due to strong growth in QIGI branded mobile sales, and strong growth in the Company's gaming business, along with the Company's stabilized ODP business. Gross profit for the full year 2010 was US$67.1 million, a 76% increase compared to US$38.2 million for the full year 2009, due to the strong growth in the Company's QIGI branded mobile phone sales and its gaming business, both of which are higher gross margin businesses. Gross margin for the full year 2010 was 24.7% compared to 18.1% for the full year 2009. Income from operations for the full year 2010 was US$36.0 million, a 161% increase compared to US$13.8 million for the full year 2009, due the above noted growth in the Company's higher gross margin businesses. Net income for the full year 2010 was US$27.3 million or US$0.56 and US$0.50 per basic and diluted weighted average outstanding ADS, compared to net income of US$6.3 million or US$0.15 and US$0.14 per basic and diluted weighted average outstanding ADS for the full year 2009.

Ms. Ouyang Yuping, TechFaith's CFO, said, "TechFaith delivered an impressive fourth quarter, marking the end of a very strong 2010, with record net revenue and net income levels. For the fourth quarter, we remained focused on driving improvements in gross margin and profitability by developing and selling higher gross margin products. Growth was led by our ODP business, and our QIGI branded mobile phone business. Our gaming business continues to expand and is becoming much more meaningful to our overall corporate performance. TechFaith remains in a position of operating strength with continued growth expected in each of our businesses, along with a continued strong balance sheet with approximately US$3.75 per ADS in cash and cash equivalents."

Mr. Deyou Dong, President and COO of TechFaith in charge of the Company's mobile phone business, said, "We are pleased with the success of our mobile phone business. We continue to gain traction by supporting strong customer demand for our customized ODP mobile phones, QIGI branded phones for enterprise users and Disney phones for the consumer market. Of note, we are also seeing growth in diverse markets for our Android based smartphones, including China, India, Latin America, Europe and the United States."

Mr. Defu Dong, Chairman and CEO of TechFaith, said, "We entered 2011 with high confidence and high expectations for TechFaith's business. Our efforts throughout 2010 helped deliver impressive revenue growth and profitability, as our focused team continues to execute on a defined strategy. In the mobile phone business, we continue our strategy of developing and promoting customized products with higher gross margins to target local operators, branders, distributors and enterprise users. Our planned production capacity expansion is in-line with the anticipated growth for our ODP and branding businesses. We also have a lot to be excited about in our motion gaming business. Our motion gaming business is expected to achieve fast growth by leveraging a whole new concept and unique business model supported by strong intellectual property rights, motion game publishing and the development of PC online motion games. Expected developments for 2011 include the launch of a proprietary software package able to convert existing games into motion games; and the launch of new motion gaming controllers, a gaming console box and a satellite television box. Overall, we are very positive in our business outlook and growth prospects for 2011."

First Quarter 2011 Outlook

The below forecast reflects typical seasonality in the first quarter and is TechFaith's current and preliminary view, which is subjected to change. TechFaith currently expects continued growth in its ODP, branded and gaming businesses, with total revenue in the first quarter of 2011 to be in the range of US$78.0 million to US$81.0 million.

Investor Conference Call / Webcast Details

TechFaith will hold a conference call on Wednesday, March 2, 2011 at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Wednesday, March 2, 2011 in Beijing). The dial-in phone number is +1-617-597-5393 or +1-866-356-4123. The conference call passcode is 60534096. A live webcast of the conference call will also be available on TechFaith's website at www.techfaithwireless.com.

A replay of the call will be available approximately 2 hours after the conclusion of the live call through 10:00 a.m. U.S. Eastern Time on March 9, 2011, (11:00 p.m., March 9, 2011 in Beijing) by telephone at +1-617-801-6888. To access the replay, use passcode 37525388. A webcast replay will also be available at http://www.techfaithwireless.com.

About TechFaith (NASDAQ:CNTF)

TechFaith (NASDAQ: CNTF) is a China-based original developed product ("ODP") provider focused on the original design and sales of mobile phone products. TechFaith aims to become a branded mobile phone specialist in differentiated market segments in the China market. TechFaith is also striving to build a leading PC and online gaming business through its wholly-owned subsidiary, 798 Entertainment Limited.

TechFaith engages in the development and production of middle to high end handsets and tailor made handsets. TechFaith's original developed products include: (1) multimedia phones and dual mode dual card handsets of multiple wireless technology combination such as GSM/GSM, GSM/CDMA, GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and Pocket PC phones; and (3) handsets with interactive online gaming and professional game terminals with phone functionality.
With the capability of developing Middleware Application MMI/UI software on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and 3.5G(HSDPA) communication technologies, TechFaith is able to provide Middleware Application MMI/UI software packages that fulfill the specifications of handset brand owners and carriers in the global market. For more information, please visit www.techfaithwireless.com.
TechFaith is aiming to become a branded mobile phone specialist for differentiated market segments in the China market under TechFace, such as under its wholly-owned subsidiary brand name QIGI for smartphone business which targets enterprise users and operator tailored market, under Glomate brand, selling other brand names for girls and teenagers, under the Jungle brand name to target the market of outdoor sports enthusiasts.
TechFaith is targeting motion, the mobile and online PC gaming markets through its websites www.17wee.com, www.798uu.com and www.798game.com with gaming content developed internally, co-developed and licensed from third parties.

Safe Harbor Statement


CONTACTS:
In China: Jay Ji China Techfaith Wireless Communication Technology Limited Tel: 86-10-5822-8390 ir@techfaith.cn	In the U.S.: David Pasquale Global IR Partners Tel: +1 914-337-8801 cntf@globalirpartners.com


CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands of U.S. Dollars, except share and per share/ADS data and unless otherwise stated)

	Three Months Ended		Three Months Ended		Year Ended
September 30		December 31		December 31
	2010		2009	2010		2009	2010

Revenues:
ODP	$55,793		$59,273	$55,982		$210,588	$222,549
Brand name phone sales	11,252		-	14,366		-	38,462
Game	1,548		488	6,527		488	10,866
Total net revenues	68,593		59,761	76,875		211,076	271,877

Cost of revenues:
ODP	45,753		50,060	45,646		172,801	180,517
Brand name phone sales	6,454		-	7,706		-	22,066
Game	23		64	2,067		64	2,202
Total cost of revenues	52,230		50,124	55,419		172,865	204,785

Gross Profit	16,363		9,637	21,456		38,211	67,092

Operating expenses:
General and administrative	2,980		2,947	5,591		9,625	14,711
Research and development	3,001		3,199	2,853		12,040	11,613
Selling and marketing	1,441		828	1,771		3,241	6,084
Exchange gain	(40)		(8)	(65)		(25)	(85)
Total operating expenses	7,382		6,966	10,150		24,881	32,323

Government subsidy income	-		207	8		481	159
Other operating income	168		-	767		-	1,109
Income from operations	9,149		2,878	12,081		13,811	36,037

Interest expense	(201)		(366)	-		(623)	(731)
Interest income	240		169	252		667	882
Investment income	-		-	142		-	142
Other income (expense), net	-		171	(120)		115	(101)
Change in fair value of derivatives embedded in Convertible notes	(3,329)		1,831	-		(5,270)	1,280
Change in fair value of put option	(30)		(27)	(30)		(84)	(123)
Income before income taxes	5,829		4,656	12,325		8,616	37,386
Income tax expenses	(2,538)		(1,215)	(2,812)		(3,642)	(9,458)
Net income	3,291		3,441	9,513		4,974	27,928
Less: net (income) loss attributable to the noncontrolling interest	1,015		(329)	(659)		1,363	(631)
Net income attributable to TechFaith	$4,306		$3,112	$8,854		$6,337	$27,297

Net income attributable to TechFaith per share
Basic	$0.01		$0.00	$0.01		$0.01	$0.04
Diluted	$0.01		$0.00	$0.01		$0.01	$0.03

Net income attribute to TechFaith per " ADS
Basic	$0.09		$0.07	$0.17		$0.15	$0.56
Diluted	$0.09		$0.07	$0.17		$0.14	$0.50

Weighted average shares outstanding
Basic	734,884,532		650,043,806	794,003,193		650,057,866	732,784,822
Diluted	734,889,995		776,158,621	794,003,193		720,889,120	795,843,605


CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands of U.S. Dollars)


	December 31, 2009	September 30, 2010	December 31, 2010
Assets
Current assets:
Cash	$130,544	$179,433	$198,536
Accounts receivable	28,992	19,137	19,241
Amount due from a related party	9,941	10,644	8,061
Inventories	22,937	21,258	17,745
Prepaid expenses and other current assets	12,420	7,685	7,997
Deferred tax assets-current	-	-	163
Total current assets	204,834	238,157	251,743

Plant, machinery and equipment, net	20,902	19,663	41,832
Construction in progress	23,680	24,564	2,576
Acquired intangible assets, net	645	2,930	2,799
Goodwill	606	1,848	1,848
Long-term investment	-	-	3,155
Total assets	$250,667	$287,162	$303,953

Liabilities and equity
Current liabilities:

Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to China Techfaith Wireless Communication Technology Limited, $30, $nil and $nil as of December 31, 2009, September 30, 2010 and December 31, 2010, respectively)	$10,514	$7,664	$7,819
Amounts due to related parties	266	44	46
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to China Techfaith Wireless Communication Technology Limited, $223, $963 and $1,272 as of December 31, 2009, September 30, 2010 and December 31, 2010, respectively)	11,283	11,674	15,195
Advance from customers (including advance from customers of the consolidated variable interest entities without recourse to China Techfaith Wireless Communication Technology Limited, $178, $365 and $339 as of December 31, 2009, September 30, 2010 and December 31, 2010, respectively)	4,720	7,453	7,450
Deferred revenue	755	283	291
Income tax payable (including income tax payable of consolidated variable interest entities without recourse to China Techfaith Wireless Communication Technology Limited, $25, $1,219 and $1,282 as of December 31, 2009, September 30, 2010 and December 31, 2010, respectively)	1,162	2,723	3,175
Total current liabilities	28,700	29,841	33,976

Convertible notes and embedded derivatives	15,441	-	-
Long-term loan	-	290	290
Deferred tax liability-noncurrent	-	149	140

Total liabilities	44,141	30,280	34,406

Equity
Ordinary shares of par value $0.00002	13	16	16
Additional paid-in capital	113,657	138,116	138,116
Treasury stock, at cost	(199)	-	-
Accumulated other comprehensive income	23,863	28,074	31,097
Statutory reserve	10,993	10,993	16,679
Retained earnings	55,866	74,309	77,477
Total TechFaith shareholders' equity	204,193	251,508	263,385
Noncontrolling interest	2,333	5,374	6,162
Total equity	206,526	256,882	269,547
Total liabilities and equity	$250,667	$287,162	$303,953

SOURCE China TechFaith Wireless Communication Technology Limited

Source: PR Newswire (March 2, 2011 - 6:00 AM EST)

[Press Release] TechFaith 3Q10 Revenue Exceeds High-End of Prior Guidance

23 Nov 2010 11:00:00 GMT

- 3Q10 Revenue Increases 30% to US$68.6 Million Compared to 3Q09

- 3Q10 Gross Margin of 24% Compared to 19% in 3Q09

Nov. 23, 2010 (PR Newswire) --

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BEIJING, Nov. 23, 2010 /PRNewswire-Asia/ -- China TechFaith Wireless Communication Technology Limited (Nasdaq: CNTF) ("TechFaith" or the Company) today announced its unaudited financial results for the third quarter ended September 30, 2010.

For the third quarter of 2010, TechFaith reported net revenue of US$ 68.6 million (RMB 464.3 million), a 30% increase compared to US$ 52.8 million (RMB 360.7 million) in the third quarter of last year. Gross margin for the third quarter of 2010 was 24% compared to 19% in the same quarter last year. Income from operations for the third quarter of 2010 was US$ 9.0 million (RMB 60.9 million), a 61% increase compared to US$ 5.6 million (RMB38.3 million) in the same quarter last year. Net income attributed to TechFaith for the third quarter of 2010 was US$ 4.3 million (RMB 29.1 million), compared to a loss of US$ 3.4 million (RMB 23.2 million) in the same quarter last year. Third quarter of 2010 results reflect the non-cash impact of a US$ 3.3 million loss due to IDG's conversion in the quarter of US$ 6.25 million convertible bonds into TechFaith ordinary shares and the remaining US$3.75 million into shares of TechFaith's gaming subsidiary 798 Entertainment, compared to a US$9.2 million non-cash loss in the same quarter last year as a result of change in fair value of derivatives associated with the convertible note.

Ms. Ouyang Yuping TechFaith's CFO, said, "Revenue in the third quarter exceeded our prior guidance and reached another record level for TechFaith. In addition to the higher revenue levels, the successful implementation of our business strategy is resulting in a more stable gross margin. Continued growth in our branding business, QIGI, was led by strong demand for existing phone models, along with initial shipments of two new high end smartphone models into the China market. TechFaith remains in a position of operating strength with continued growth expected in each of our operating units, along with a continued strong balance sheet with approximately US$3.70 per ADS in cash and cash equivalents."

Mr. Deyou Dong, President and COO of TechFaith in charge of the company's mobile business said, "Our focus in the mobile business has been on market expansion and profitable unit growth. To achieve this we have cooperated with global leading brands, built our enterprise business and acquired the QIGI branded phone business. In the case of QIGI, total shipment volume increased 20% in the third quarter of 2010 compared to the second quarter of 2010. This improvement was driven by growth in the domestic smartphone market and demand from enterprise mobile phones users. QIGI's fast growth is in line with our expectations and we expect our branded mobile phone business to become one of our major business segments. To support the expected growth, we recently announced the planned addition of a major 10 million-unit capacity smartphone production line. As for our ODP business, we expect continued stability in revenue and gross margin to continue from the China, India, South East Asia, Middle East and Latin America Markets."

798 Entertainment Management Change

The Company announced the appointment of Mr. Tony Kong as the CEO of 798 Entertainment. Mr. Kong, who joined TechFaith four years ago, has served as director in the sales department, and President of 17Wee. His performance and strong experience in the motion gaming business are expected to help drive growth and further success in the gaming business. Mr. Defu Dong, Chairman and CEO of TechFaith, will continue to serve as the Chairman for 798 Entertainment.

Mr. Tony Kong, CEO of 798 Entertainment, said, "We continue to make progress in our gaming business. We are particularly excited about our Motion and Mobile games, where our 17Wee unit is generating positive market feedback because it is clearly differentiated and gives us a competitive edge. Awareness was rapidly built during the China Tennis Open as 17Wee was one of the official sponsors, and produced a virtual tennis competition in conjunction with the live event. Various motion gaming accessories, including the 17Phone, have been launched to enhance the game experience, which is more entertaining and healthier."

Fourth Quarter 2010 Outlook

The below forecast reflects TechFaith's current and preliminary view, which is subjected to change. TechFaith currently expects revenue for the fourth quarter of 2010 to be in the range of US$ 74.0 million to US$ 77.0 million, with gross margin levels similar to the third quarter of 2010.

Looking forward, Mr. Defu Dong, Chairman and CEO of TechFaith added: "We expect further sequential growth based on the strength of our core ODP, branding and expanding gaming business, with increased business momentum in 2011."

Investor Conference Call / Webcast Details

TechFaith will hold a conference call on Tuesday, November 23, 2010 at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Tuesday, November 23, 2010 in Beijing). The dial-in phone number is +1-857-350-1671. The conference call passcode is 50236591. A live webcast of the conference call will also be available on TechFaith's website at www.techfaithwireless.com.

A replay of the call will be available approximately 2 hours after the conclusion of the live call through 10:00 a.m. U.S. Eastern Time on November 30, 2010, (11:00 p.m., November 30, 2010 in Beijing) by telephone at +1-617-801-6888. To access the replay, use passcode 40022705. A webcast replay will also be available at http://www.techfaithwireless.com.

About us

TechFaith engages in the development and production of middle to high end handsets and tailor made handsets. TechFaith's original developed products include: (1) multimedia phones and dual mode dual card handsets of multiple wireless technology combination such as GSM/GSM, GSM/CDMA, GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and Pocket PC phones; and (3) handsets with interactive online gaming and professional game terminals with phone functionality.
With the capability of developing Middleware Application MMI/UI software on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and 3.5G(HSDPA) communication technologies, TechFaith is able to provide Middleware Application MMI/UI software packages that fulfill the specifications of handset brand owners and carriers in the global market. For more information, please visit www.techfaithwireless.com.
TechFaith is aiming to become a branded mobile phone specialist for differentiated market segments in the China market, such as under its wholly-owned subsidiary brand name QIGI for smartphone business which targets enterprise users and operator tailored market, under Glomate brand, selling other brand names for girls and teenagers, under the TechFace brand name to target the market of outdoor sports enthusiasts.
TechFaith is targeting motion, the mobile and online PC gaming markets through its websites www.17wee.com, www.798uu.com and www.798game.com with gaming content developed internally, co-developed and licensed from third parties.

Safe Harbor Statement

CONTACTS:
In China:
Jay Ji
China TechFaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
ir@techfaith.cn

In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
cntf@globalirpartners.com


CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands of U.S. Dollars, except share and per share/ADS data and unless otherwise stated)

	Three Months Ended	Three Months Ended		Nine Months Ended
	June 30	September 30		September 30
	2010	2009	2010		2009	2010

Revenues:
ODP	$56,336	$52,799	$55,793		$151,315	$166,567
Brand name phone sales	7,633	-	11,252		-	24,096
Game	1,534	-	1,548		-	4,339
Total net revenues	$65,503	$52,799	$68,593		$151,315	$195,002

Cost of revenues:
ODP	$44,859	$42,519	$45,753		$122,741	$134,871
Brand name phone sales	4,752	-	6,454		-	14,360
Game	42	-	23		-	135
Total cost of revenues	$49,653	$42,519	$52,230		$122,741	$149,366

Gross Profit	$15,850	$10,280	$16,363		$28,574	$45,636

Operating expenses:
General and administrative	$3,193	$1,459	$2,980		$6,678	$9,120
Research and development	2,764	2,556	3,001		8,841	8,760
Selling and marketing	1,583	987	1,441		2,413	4,313
Exchange loss (gain)	20	(52)	(40)		(17)	(20)
Total operating expenses	$7,560	$4,950	$7,382		$17,915	$22,173

Government subsidy income	51	257	-		274	151

Income from operations	$8,341	$5,587	$8,981		$10,933	$23,614

Interest expense	(265)	(165)	(201)		(257)	(731)
Interest income	206	165	240		498	630
Other income (expense), net	188	(94)	168		(56)	361
Change in fair value of derivatives embedded in Convertible notes	1,266	(9,214)	(3,329)		(7,101)	1,280
Change in fair value of put option	(30)	(39)	(30)		(57)	(93)
Income (loss) before income taxes	$9,706	($3,760)	$5,829		$3,960	$25,061
Income tax benefits (expenses)	(2,175)	(1,314)	(2,538)		(2,427)	(6,646)
Net (loss) income	$7,531	($5,074)	$3,291		$1,533	$18,415
Less: net income (loss) attributable to the noncontrolling interest	(249)	1,674	1,015		1,692	28
Net income (loss) attributable to TechFaith	$7,282	($3,400)	$4,306		$3,225	$18,443

Net income (loss) attributable to TechFaith per share
Basic	$0.01	($0.01)	$0.01		$0.01	$0.03
Diluted	$0.01	($0.01)	$0.01		$0.01	$0.02

Net income (loss) attributable to TechFaith per ADS
Basic	$0.15	($0.08)	$0.09		$0.07	$0.39
Diluted(1)	$0.11	($0.08)	$0.09		$0.07	$0.34

Weighted average shares outstanding
Basic	715,172,111	650,116,398	734,884,532		650,062,159	712,154,456
Diluted	841,286,432	650,116,398	734,889,995		650,066,429	784,340,131

(1) The company reconsidered the relevant accounting guidelines and modified its calculation method of diluted earnings per ADS. The company applied the same calculation method retrospectively into historical periods when such information is presented


CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands of U.S. Dollars)

	September 30, 2009	June 30, 2010	September 30, 2010

Assets
Current assets:
Cash and cash equivalents	$128,937	$170,879	$179,433
Restricted cash	81	-	-
Accounts receivable	24,175	17,613	19,137
Amounts due from a related party	7,041	4,103	10,644
Inventories	26,192	22,218	21,258
Prepaid expenses and other current assets	15,292	14,104	7,685
Deferred tax assets-current	127	-	-
Total current assets	$201,845	$228,917	$238,157

Plant, machinery and equipment, net	$21,616	$19,666	$19,663
Construction in progress	23,548	24,195	24,564
Acquired intangible assets, net	665	3,075	2,930
Deferred tax assets-noncurrent	75	-	-
Goodwill	619	1,848	1,848
Total assets	$248,368	$277,701	$287,162

Liabilities and equity
Current liabilities:
Current portion of long term payable	$916	$687	$-
Accounts payable (including accounts payable of the consolidated variable interest entities without recourse to China TechFaith Wireless Communication Technology Limited, $nil, $nil and $nil as of September 30, 2009, June 30, 2010 and September 30 2010, respectively)	5,817	9,727	7,664
Amounts due to related parties	153	43	44
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated variable interest entities without recourse to China TechFaith Wireless Communication Technology Limited, $97, $595 and $963 as of September 30, 2009, June 30, 2010 and September 30, 2010 respectively)	9,409	9,277	11,674
Advance from customers (including advance from customers of the consolidated variable interest entities without recourse to China TechFaith Wireless Communication Technology Limited, $222, $338 and $365 as of September 30, 2009, June 30, 2010 and September 30, 2010, respectively)	9,977	7,351	7,453
Deferred revenue	945	889	283
Income tax payable (including income tax payable of consolidated variable interest entities without recourse to China TechFaith Wireless Communication Technology Limited, $nil, $797 and $1,219 as of September 30, 2009, June 30, 2010 and September 30, 2010, respectively)	1,453	2,366	2,723
Total current liabilities	$28,670	$30,340	$29,841

Convertible notes and embedded derivatives	16,907	11,362	-
Long-term loan	-	-	290
Deferred tax liability-noncurrent	-	157	149

Total liabilities	$45,577	$41,859	$30,280

Equity
Paid in capital	$13	$14	$16
Additional paid-in capital	114,275	126,292	138,116
Accumulated other comprehensive income	23,881	25,219	28,074
Statutory reserve	8,542	10,993	10,993
Retained earnings	55,205	70,003	74,309
Total TechFaith shareholders' equity	$201,916	$232,521	$251,508
Noncontrolling interest	$875	$3,321	$5,374
Total equity	$202,791	$235,842	$256,882
Total liabilities and equity	$248,368	$277,701	$287,162

SOURCE China TechFaith Wireless Communication Technology Limited

Source: PR Newswire (November 23, 2010 - 6:00 AM EST)

[Press Release] TechFaith Management to Invest US$105 million n Games Subsidiary

05 Oct 2010 10:00:00 GMT

BEIJING, Oct. 5 /PRNewswire-Asia/ -- China TechFaith Wireless Communication Technology Limited (Nasdaq:CNTF - News) ("TechFaith") today announced that 132 TechFaith employees, including directors and senior managers (the "Investors"), will invest a total of RMB 50 million in the company's games subsidiary, 798 Entertainment Limited ("798 Entertainment"). After the investment, 798 Entertainment will have a total market valuation of US$105 million; the Investors will own approximately 7.0% of the 798 Entertainment, while TechFaith will own 63.0%, Infiniti Capital Limited will own 21.8% and IDG-Accel China Growth Fund II L.P. and IDG-Accel China Investors II L.P. (the "IDG Funds") together will own 8.2%.

Mr. Defu Dong, Chairman and CEO of TechFaith and CEO of 798 Entertainment, said, "This investment reflects the high optimism and confidence our management team has in our games business strategy and future success. In addition, this direct investment in 798 Entertainment by our employees will further motivate our employees to achieve higher performance levels, as they will directly benefit from the success of 798 Entertainment."

Mr. Dong added, "With our games business now divided into three branches, we have a streamlined, focused operational structure: 798 Game focuses on the development of PC online games and publishing; 798 Anytime Online (formerly called 798 Mobile) focuses on the development of mobile phone games and 17 Wee focuses on the motion game business. All three are building and developing a catalog of games titles and working on some exciting innovations. Our goal is to build a strong catalog of games titles in each of the three above areas. This will give us the necessary platform to attract the sizeable universe of gamers needed to drive games revenue growth and profitability on a sustained basis."

About TechFaith

TechFaith (Nasdaq:CNTF - News) is a China-based original developed product ("ODP") provider focused on the original design and sales of mobile phone products. TechFaith aims to become a branded mobile phone specialist in differentiated market segments in the China market. TechFaith is also striving to build a leading PC and online gaming business through its wholly-owned subsidiary, 798 Entertainment Limited.

TechFaith engages in the development and production of mid- to high-end handsets and tailor made handsets. TechFaith's original developed products include: (1) multimedia phones and dual mode dual card handsets of multiple wireless technology combinations, such as GSM/GSM, GSM/CDMA, GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and Pocket PC phones; and (3) handsets with interactive online gaming and professional game terminals with phone functionality.
With the capability of developing Middleware Application MMI/UI software on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and 3.5G(HSDPA) communication technologies, TechFaith is able to provide Middleware Application MMI/UI software packages that fulfill the specifications of handset brand owners and carriers in the global market. For more information, please visit www.techfaithwireless.com.
TechFaith is aiming to become a branded mobile phone specialist for differentiated market segments in the China market, such as under its wholly-owned subsidiary brand name QIGI for smartphone business which targets enterprise users and operator tailored market, under Glomate brand, selling other brand names for girls and teenagers, under the TechFace brand name to target the market of outdoor sports enthusiasts.
TechFaith is targeting both the mobile and online PC gaming markets through its websites www.798uu.com and www.798game.com with gaming content developed internally, co-developed and licensed from third parties.

Safe Harbor Statement


CONTACTS:
In China: Jay Ji China Techfaith Wireless Communication Technology Limited Tel: 86-10-5822-8390 ir@techfaith.cn	In the U.S.: David Pasquale Global IR Partners Tel: +1 914-337-8801 cntf@globalirpartners.com

[Press Release] China Techfaith 2Q profit rises 62 percent

18 Aug 2010 11:00:00 GMT

SAN FRANCISCO (AP) -- China Techfaith Wireless Communication Technology Ltd. said Tuesday that its second-quarter profit climbed 62 percent as the Chinese cell phone designer's product sales rose.

The Beijing-based company's American depositary shares rose 17 cents, or 5.3 percent, to $3.38 in after-hours trading. The stock had finished regular trading up 14 cents, or 4.6 percent, at $3.21.

For the April-June quarter, China Techfaith said it earned $7.3 million, or 13 cents per ADS, compared with $4.5 million, or 10 cents per ADS, in the year-ago quarter.

Revenue rose nearly 32 percent year-over-year to $65.5 million. The company sold 691,000 mobile products in the quarter, helped by demand in Europe, China, India and Southeast Asia.

For the current quarter, China Techfaith predicted revenue of $66 million to $68 million.

[Press Release] TechFaith Reports Second Quarter 2010 Financial Results

17 Aug 2010 20:00:00 GMT

BEIJING--(Marketwire - 08/17/10) - China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith" or the "Company") today announced its unaudited financial results for the second quarter ended June 30, 2010.

For the second quarter of 2010, TechFaith reported net revenue of US$65.5 million (RMB447.0 million), a 7.6% increase compared to US$60.9 million (RMB415.8 million) in the first quarter of 2010 and a 31.5% increase compared to US$49.8 million (RMB340.1 million) in the second quarter of last year. Gross margin for the second quarter of 2010 improved to 24.2% compared to 22.0% in the previous quarter and 19.0% in the same quarter last year. Income from operations for the second quarter of 2010 was US$8.3 million (RMB56.6 million), a 31.7% increase compared to US$6.3 million (RMB43.0 million) in the previous quarter and a 277.3% increase compared to US$2.2 million (RMB14.9 million) in the same quarter last year. Net income attributable to TechFaith for the second quarter of 2010 was US$7.3 million (RMB49.8 million), a 5.8% increase compared to US$6.9 million (RMB47.1million) in the first quarter of 2010 and a 62.2% increase compared to US$4.5 million (RMB30.7 million) in the same quarter of last year.

Ouyang Yuping, TechFaith's CFO, said, "Results in the second quarter exceeded prior guidance and reached another record level for TechFaith. We continue to successfully execute on our business strategy, as evidenced by the higher revenue, continued improvement in gross margin, and cash flow generation. Our original developed products ('ODP') business revenue also broke our prior company record, reaching US$56.3 million (RMB384.2 million). Revenue from our branding business increased 46.5% from US$5.2million (RMB35.5 million) to US$7.6 million (RMB51.9 million) compared to the first quarter, as we continue to benefit from the successful integration of the business and demand for existing enterprise mobile phone users and enthusiasm for pending launches. Revenue from TechFaith's gaming business increased 22.0% from US$1.3 million (RMB8.9million) to US$1.5 million (RMB10.2 million) compared to the first quarter."

Mr. Deyou Dong, who as COO of TechFaith is in charge of the company's mobile business, said, "We achieved further success in our ODP business, with total sales improving to 691,000 units in the second quarter. The improvement has been driven by strong demand in China, India, South East Asia and Europe. Our branding business has also achieved excellent results, especially with QIGI, which maintained higher gross margins due to its enterprise user targeted products, including smartphones. Both the branding business and the ODP business are now equally important for TechFaith, while we believe the branding business can create more business opportunities longer-term."

Mr. Defu Dong, Chairman and CEO of TechFaith, commented, "We have achieved a return to more reasonable and stable growth in our business, with many promising growth initiatives well underway. And while our ODP business and branding businesses are performing well we want to replicate that success in our gaming business given the large existing opportunities in PC online, mobile and motion games. We have already built a strong platform to grow off with our team working hard to build our catalog of gaming titles. This is central to our efforts to build a larger customer base among loyal game players. Fortunately, TechFaith is in a position of operating strength with continued growth expected in each of our operating units, along with a continued strong balance sheet with US$3.60 per ADS in cash and cash equivalents. Our goal remains to further increase value for our shareholders as we drive our company to achieve the growth and profitability levels each operating unit is capable of."

Third Quarter 2010 Outlook

The below forecast reflects TechFaith's current and preliminary view, which is subject to change.

TechFaith currently expects revenue to be in the range of US$66.0 million to US$68.0 million for the third quarter of 2010, with a gross margin and operating expense levels similar to the second quarter of 2010.

The Company expects its ODP business to grow sequentially and year over year, as it launches three new mobile phones targeting the global market, in addition to the Company's existing product families. Within the Company's branding business, sales are planned in the third quarter for the Barbie and Disney mobile phones through Glomate Mobile (Beijing) Co., Ltd. TechFaith also expects QIGI to achieve growth sequentially and year over year as it provides tailored content for its mobile phones. Additionally, TechFaith plans to launch its first model with outdoor specialized content by the end of 2010. Meanwhile, the Company expects continuing growth in its gaming business above levels achieved in the second quarter 2010.

Investor Conference Call / Webcast Details

TechFaith will hold a conference call on Tuesday, August 17, 2010 at 7:00 p.m. U.S. Eastern Time (7:00 a.m. Wednesday, August 18, 2010 in Beijing). The dial-in phone number is +1-617-614-3670. The conference call passcode is 39014903. A live webcast of the conference call will also be available on TechFaith's website at www.techfaithwireless.com.

A replay of the call will be available approximately 2 hours after the conclusion of the live call through 11:30 p.m. U.S. Eastern Time on August 24, 2010, (11:30 a.m., August 25, 2010 in Beijing) by telephone at +1-617-801-6888. To access the replay, use passcode 88471016. A webcast replay will also be available at www.techfaithwireless.com.

About us

TechFaith (NASDAQ:CNTF - News) is a China-based original developed product ("ODP") provider focused on the original design and sales of mobile phone products. TechFaith aims to become a branded mobile phone specialist in differentiated market segments in the China market. TechFaith is also striving to build a leading PC and online gaming business through its wholly-owned subsidiary, 798 Entertainment Limited.

 
--  TechFaith engages in the development and production of middle to high
    end handsets and tailor made handsets.  TechFaith's original developed
    products include: (1) multimedia phones and dual mode dual card
    handsets of multiple wireless technology combination such as GSM/GSM,
    GSM/CDMA, GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based
    smartphones and Pocket PC phones; and (3) handsets with interactive
    online gaming and professional game terminals with phone functionality.
--  With the capability of developing Middleware Application MMI/UI
    software on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA)
    and 3.5G(HSDPA) communication technologies, TechFaith is able to
    provide Middleware Application MMI/UI software packages that fulfill
    the specifications of handset brand owners and carriers in the global
    market. For more information, please visit www.techfaithwireless.com.
--  TechFaith is aiming to become a branded mobile phone specialist for
    differentiated market segments in the China market, such as under its
    wholly-owned subsidiary brand name QIGI for smartphone business which
    targets enterprise users and operator tailored market, under Glomate
    brand, selling other brand names for girls and teenagers, under the
    TechFace brand name to target the market of outdoor sports enthusiasts.
--  TechFaith is targeting both the mobile and online PC gaming markets
    through its websites www.798uu.com and www.798game.com with gaming
    content developed internally, co-developed and licensed from third
    parties.

Safe Harbor Statement

 
        CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED
        UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
  (In Thousands of U.S. Dollars, except share and per share/ADS data and
                         unless otherwise stated)


           Three Months
              Ended        Three Months Ended         Six Months Ended

             March 31            June 30                   June 30
               2010         2009         2010         2009         2010

           -----------  -----------  -----------  -----------  -----------

Revenues:
ODP        $    54,438  $    49,846  $    56,336  $    98,516  $   110,774
Brand name
 phone
 sales           5,211            -        7,633            -       12,844

Game             1,257            -        1,534            -        2,791
           -----------  -----------  -----------  -----------  -----------
Total net
 revenues  $    60,906  $    49,846  $    65,503  $    98,516  $   126,409

Cost of
 revenues:
ODP        $    44,259  $    40,366  $    44,859  $    80,222  $    89,118
Brand name
 phone
 sales           3,154            -        4,752            -        7,906
Game                70            -           42            -          112
           -----------  -----------  -----------  -----------  -----------
Total cost
 of
 revenues  $    47,483  $    40,366  $    49,653  $    80,222  $    97,136

Gross
 Profit    $    13,423  $     9,480  $    15,850  $    18,294  $    29,273

Operating
 expenses:
General
 and
 administ-
 rative    $     2,947  $     3,479  $     3,193  $     5,219  $     6,140
Research
 and
 develop-
 ment            2,995        3,189        2,764        6,285        5,759
Selling and
 marketing       1,289          624        1,583        1,426        2,872
Exchange
 loss                -           21           20           35           20
           -----------  -----------  -----------  -----------  -----------
Total
 operating
 expenses  $     7,231  $     7,313  $     7,560  $    12,965  $    14,791

Government
 subsidy
 income            100           12           51           17          151

Income
 from
 operatio-
 ns        $     6,292  $     2,179  $     8,341  $     5,346  $    14,633

Interest
 expenses         (265)         (62)        (265)         (92)        (530)
Interest
 income            184          156          206          333          390
Other
 income, net         5           38          188           38          193
Change in
 fair
 value of
 derivatives
 embedded in
 convertible
 notes           3,343        2,113        1,266        2,113        4,609
Change in
 fair value
 of put
 option            (33)           -          (30)         (18)         (63)
           -----------  -----------  -----------  -----------  -----------
Income
 before
 income
 taxes     $     9,526  $     4,424  $     9,706  $     7,720  $    19,232
Income tax
 benefits
 (expenses)     (1,933)         106       (2,175)      (1,113)      (4,108)
           -----------  -----------  -----------  -----------  -----------
Net income $     7,593  $     4,530  $     7,531  $     6,607  $    15,124
Less: net
 income
 (loss)
 attributable
 to the
 noncontr-
 olling
 interest         (738)         (26)        (249)          18         (987)
           -----------  -----------  -----------  -----------  -----------
Net income
 attribut-
 able to
 TechFaith $     6,855  $     4,504  $     7,282  $     6,625  $    14,137
           ===========  ===========  ===========  ===========  ===========

Net income
 attribut-
 able to
 TechFaith
 per share
  Basic    $      0.01  $      0.01  $      0.01  $      0.01  $      0.02
           ===========  ===========  ===========  ===========  ===========
  Diluted  $      0.01  $      0.01  $      0.01  $      0.01  $      0.02
           ===========  ===========  ===========  ===========  ===========

Net income
 attribute to
 TechFaith
 per ADS*
  Basic    $      0.15  $      0.10  $      0.15  $      0.15  $      0.30
           ===========  ===========  ===========  ===========  ===========
  Diluted  $      0.13  $      0.10  $      0.13  $      0.15  $      0.27
           ===========  ===========  ===========  ===========  ===========

Weighted
 average
 shares
 outstand-
 ing
  Basic    685,868,082  650,034,590  715,172,111  650,034,590  700,601,047
           ===========  ===========  ===========  ===========  ===========
  Diluted  811,983,427  679,148,185  841,286,432  664,671,776  826,715,923
           ===========  ===========  ===========  ===========  ===========





        CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED
              UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                      (In Thousands of U.S. Dollars)



                                           June 30,   March 31,  June 30,
                                             2009       2010       2010

                                           ---------- ---------- ----------
Assets
Current assets:
Cash and cash equivalents                  $  111,794 $  162,421 $  170,879
Restricted cash                                    81          -          -
Accounts receivable                            24,376     17,740     17,613
Notes receivable                                  693          -          -
Amounts due from a related party                7,144      2,622      4,103
Inventories                                    27,642     24,178     22,218
Prepaid expenses and other current assets      12,745     13,666     14,104
Deferred tax assets-current                        96          -          -
                                           ---------- ---------- ----------
Total current assets                       $  184,571 $  220,627 $  228,917
                                           ---------- ---------- ----------

Plant, machinery and equipment, net        $   22,589 $   20,245 $   19,666
Construction in progress                       23,498     23,965     24,195
Acquired intangible assets, net                   758      3,235      3,075
Deferred tax assets-noncurrent                    117          -          -
Goodwill                                          619      1,848      1,848
                                           ---------- ---------- ----------
Total assets                               $  232,152 $  269,920 $  277,701
                                           ========== ========== ==========

Liabilities and equity
Current liabilities:
Current portion of long term payable       $    1,028 $      687 $      687
Accounts payable                                6,042      9,952      9,727
Amounts due to related parties                    297        701         43
Accrued expenses and other current
 liabilities                                   11,726     10,408      9,277
Advance from customers                          6,771      5,494      7,351
Deferred revenue                                  773      1,031        889
Income tax payable                                149      2,221      2,366
                                           ---------- ---------- ----------
Total current liabilities                  $   26,786 $   30,494 $   30,340

Convertible notes and embedded derivatives      7,529     12,363     11,362
Deferred tax liability-noncurrent                   -        170        157
                                           ---------- ---------- ----------

Total liabilities                          $   34,315 $   43,027 $   41,859
                                           ---------- ---------- ----------


Equity
Paid in capital                            $       13 $       14 $       14
Additional paid-in capital                    105,848    126,292    126,292
Accumulated other comprehensive income         23,838     23,801     25,219
Statutory reserve                               8,542     10,993     10,993
Retained earnings                              58,605     62,721     70,003
                                           ---------- ---------- ----------
Total Techfaith shareholders' equity       $  196,846 $  223,821 $  232,521
                                           ---------- ---------- ----------
Noncontrolling interest                    $      991 $    3,072 $    3,321
                                           ---------- ---------- ----------
Total equity                               $  197,837 $  226,893 $  235,842
                                           ---------- ---------- ----------
Total liabilities and equity               $  232,152 $  269,920 $  277,701
                                           ========== ========== ==========

Contact:


 
CONTACTS:
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
ir@techfaith.cn
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
cntf@globalirpartners.com

[Press Release] TechFaith Reports Fourth Quarter and Full Year 2009 Financial Results

15 Mar 2010 20:00:00 GMT

BEIJING--(Marketwire - 03/15/10) - China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News)

Highlights:

 
--  Fourth quarter revenues increased by 13.3% from the third quarter of
    2009 and by 15.2% year-over-year to US$59.8 million.
--  Fourth quarter net income increased to US$3.1 million from a net loss
    US$3.4 million in the third quarter of 2009.
--  Full year 2009 revenue increased by 1.1% year-over-year to US$211.1
    million.
--  Full year 2009 operating expense reduced by 37.9% year-over-year to
    US$24.9 million.

China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith" or the "Company") today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2009.

For the fourth quarter of 2009, TechFaith reported net revenue of US$59.8 million, a 13.3% increase compared to US$52.8 million in the third quarter of 2009 and a 15.2% increase compared to US$51.9 million in the same period of last year. Gross profit for the fourth quarter of 2009 was US$9.6 million, a 6.8% decrease compared to US$10.3 million in the previous quarter, a 14.3% increase compared to US$8.4 million in the same period last year. Gross margin for the fourth quarter of 2009 was 16.1% compared to 19.5% in the previous quarter and 16.2% in the same quarter last year. The decline in gross profit and gross margin was primarily due to the change in our product mix in the fourth quarter of 2009, as a result of which we generated a higher percentage of sales from feature phone products with lower average selling prices and lower margins compared with our other products. Operating expense for the fourth quarter was US$7.0 million, compared to US$5.0 million in the third quarter of 2009 and US$8.2 million in the same quarter last year. We recorded a US$0.6 million allowance for bad debt in the fourth quarter of 2009, while we did not incur such allowance in the third quarter of 2009 and recorded an allowance at the amount of US$1.0 million in the fourth quarter of 2008. Operating income for the fourth quarter of 2009 was US$2.9 million compared to US$5.6 million in the third quarter of 2009 and US$1.0 million in the fourth quarter of last year. Net income for the fourth quarter of 2009 was US$3.1 million compared to net loss US$3.4 million in the third quarter of 2009 and net income US$0.8 million in the fourth quarter of last year. The net income for the fourth quarter of 2009 included a US$1.8 million non-cash gain as a result of change in fair value of the derivatives associated with a convertible debt issued in 2009.

For the full year ended December 31, 2009, TechFaith reported total revenue of US$211.1 million, a 1.1% increase compared to US$208.9 million for the full year 2008. Operating expense for the full year 2009 was US$24.9 million, a 37.9% decrease compared to US$40.1 million for the full year 2008. Income from operations for the full year 2009 was US$13.8 million, a 109.1% increase compared to US$6.6 million for the full year 2008. Net income for the full year 2009 was US$6.3 million, or US$0.15 and US$0.14 per basic and diluted weighted average outstanding ADS, compared to a net income of US$8.0 million, or US$0.18 per weighted average outstanding ADS (basic and diluted) for the full year 2008. The decline in net income reflects a non-cash charge of US$5.3 million as a result of change in fair value of the derivatives associated with a convertible debt issued in 2009.

Defu Dong, TechFaith's Chairman and CEO, said, "In 2009, we made considerable progress in our efforts to stabilize our core business, to establish our new mobile and online gaming businesses and to streamline our operating expenses. As a result of our efforts, revenues were stable in our original developed products ("ODP") business, with 6.5% growth in the Smartphone sales year over year and high sales of feature phones in the Latin American and European markets year over year. We gained traction with our differentiated ODP business model by promoting middle to high-end products at more competitive pricing. In addition, we had improved sales of 3G products in China and improved sales of GSM products in Latin America and Southeast Asia in 2009. We are effectively controlling our operating expenses through improved R&D efficiency and human resources management. We will continue to work on margin improvement in our core business and initiate new marketing initiatives to develop local brands and to provide customized product offerings for distributors and operators."

"We are pleased with the company's significant progress in our gaming business throughout 2009. The Company recognized revenue in mobile build-in game service and mobile game development contract of $0.5 million in the fourth quarter of 2009. In our PC online gaming business, we now have three games close to completion as most of the development work has been finalized. We currently expect to launch all three games in the first half year of 2010. This follows the official launch of our first MMORPG PC online game, Fairy Online, into open beta version at the end of January, which received a positive response from game players. We are also encouraged by the progress our team is making in implementing new technologies, such as motion sensor games. We expect to continue to make progress as we move from an entrepreneurial start-up to an established gaming company with a strong title catalog and new title development pipeline."

Mr. Dong further commented, "We will continue our focus on the ODP, branding and gaming businesses in 2010. In the ODP business, we will continue to provide middle to high-end product to our ODP business partners in China and overseas markets. For the branding business, we will use the QIGI brand to promote our smartphone brand in China and to promote fashionable mobile phone products under the Barbie brand name and potentially other brands. For our gaming business, we are targeting at total launching seven PC online games in 2010. We expect continuing progress and success in our mobile gaming business, and are optimistic given the positive potential impact on the company's profitability."

First Quarter 2010 Outlook

TechFaith currently expects revenue to be in the range of US$60 million to US$62 million for the first quarter of 2010. This forecast reflects TechFaith's current and preliminary view, which is subject to change.

Investor Conference Call / Webcast Details

TechFaith will hold a conference call on Monday, March 15, 2010 at 7:00 p.m. U.S. Eastern Time (7:00 a.m. March 16, 2010 in Beijing), is +1-617-786-2964. The conference call passcode is 76367891. A live webcast of the conference call will also be available on TechFaith's website at www.techfaithwireless.com.

A replay of the call will be available approximately 2 hours after the conclusion of the live call through 11:30 p.m. U.S. Eastern Time on March 22, 2010, (11:30 a.m., March 23, 2010 in Beijing) by telephone at +1-617-801-6888. To access the replay, use passcode 93952015. A webcast replay will also be available atwww.techfaithwireless.com.

About TechFaith

TechFaith (NASDAQ:CNTF - News) is a China-based original developed product provider focused on the original design and sales of mobile phone products. TechFaith is also striving to build a leading PC and online gaming business through its wholly-owned subsidiary, 798 Entertainment Limited. 798 Entertainment Limited currently engages in providing self-developed as well as co-developed and licensed cell phone contents.

 
--  TechFaith engages in the development and production of middle to high
    end handsets and tailor made handsets.  TechFaith's original developed
    products include: (1) multimedia phones and dual mode dual card
    handsets of multiple wireless technology combination such as GSM/GSM,
    GSM/CDMA, GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based
    smartphones and Pocket PC phones; and (3) handsets with interactive
    online gaming and professional game terminals with phone functionality.
--  With the capability of developing Middleware Application MMI/UI
    software on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA)
    and 3.5G(HSDPA) communication technologies, TechFaith is able to
    provide Middleware Application MMI/UI software packages that fulfill
    the specifications of handset brand owners and carriers in the global
    market. For more information, please visit www.techfaithwireless.com.
--  TechFaith is targeting both the mobile and online PC gaming markets
    through its websites www.798uu.com and www.798game.com with gaming
    content developed internally, co-developed and licensed from third
    parties.

Safe Harbor Statement

[Press Release] TechFaith Schedules 4Q 2009 Financial Results Conference Call

09 Feb 2010 12:00:00 GMT

BEIJING--(Marketwire - 02/09/10) - China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith") today announced that it will hold a conference call to discuss the Company's financial results for the fourth quarter 2009 and business outlook.

The dial-in number for the live audio call, which will begin on Monday, March 15, 2010 at 7:00 p.m. U.S. Eastern Time (7:00 a.m. March 16, 2010 in Beijing), is +1-617-786-2964. The conference call passcode is 76367891. A live webcast of the conference call will also be available on TechFaith's website at www.techfaithwireless.com.

About TechFaith

�
--  TechFaith engages in the development and production of middle to high
    end handsets and tailor made handsets.  TechFaith's original developed
    products include: (1) multimedia phones and dual mode dual card
    handsets of multiple wireless technology combination such as GSM/GSM,
    GSM/CDMA, GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based
    smartphones and Pocket PC phones; and (3) handsets with interactive
    online gaming and professional game terminals with phone functionality.
--  With the capability of developing Middleware Application MMI/UI
    software on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA)
    and 3.5G(HSDPA) communication technologies, TechFaith is able to
    provide Middleware Application MMI/UI software packages that fulfill
    the specifications of handset brand owners and carriers in the global
    market. For more information, please visit www.techfaithwireless.com.
--  TechFaith is targeting both the mobile and online PC gaming markets
    through its websites www.798uu.com and www.798game.com with gaming
    content developed internally, co-developed and licensed from third
    parties.

Safe Harbor Statement

Contact:


 
CONTACTS
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
ir@techfaith.cn
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
cntf@globalirpartners.com

[Press Release] TechFaith to Launch First MMORPG PC Online Game

26 Jan 2010 12:00:00 GMT

BEIJING--(Marketwire - 01/26/10) - China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith") today announced that its wholly-owned gaming subsidiary 798 Entertainment Limited plans to officially launch its first MMORPG PC online game, Fairy Online, into open beta version at 7:00 p.m. (Beijing Time) on January 28, 2010.

Fairy Online is a dazzling and innovative MMORPG based on the breakthrough 3D technology 'Cartoon Box.' The game is designed to give players a stunning visual experience, with the graphics competitive with if not better than the popular cartoons. The game also boasts countless creative features, such as random tasks, fast friend searching, an interactive community and graffiti brush. The combination of rich graphics and game features offers a first-class gaming experience. Equally important, Fairy Online was designed to offer a rich cultural experience, with content true to the ancient Chinese background.

Mr. Defu Dong, Chairman and CEO of TechFaith, commented, "This is a very important step forward for our gaming business. We have high expectations for Fairy Online based on the stunning production our team achieved and based on highly positive initial feedback from our closed beta test. Fairy Online will serve as a showcase for the technology, graphic and storytelling innovation that we strive to be known for in our gaming business. We are focused on building momentum in our gaming business. We intend to follow up Fairy Online with other rich PC online, mobile, and motion sensor games."

About TechFaith

�
--  TechFaith engages in the development and production of middle to high end
    handsets and tailor made handsets. TechFaith's original developed products
    include: (1) multimedia phones and dual mode dual card handsets of multiple
    wireless technology combination such as GSM/GSM, GSM/CDMA, GSM/WCDMA,
    GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and Pocket PC phones;
    and (3) handsets with interactive online gaming and professional game terminals
    with phone functionality.
--  With the capability of developing Middleware Application MMI/UI software on
    2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and 3.5G(HSDPA)
    communication technologies, TechFaith is able to provide Middleware Application
    MMI/UI software packages that fulfill the specifications of handset brand owners
    and carriers in the global market. For more information, please visit
    www.techfaithwireless.com.
--  TechFaith is targeting both the mobile and online PC gaming markets through
    its websites www.798uu.com and www.798game.com with gaming content developed
    internally, co-developed and licensed from third parties.

Safe Harbor Statement

Contact:


 
CONTACTS:
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
ir@techfaith.cn
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
cntf@globalirpartners.com

[Press Release] TechFaith and aigo Promote Next Generation Gaming Content

12 Jan 2010 12:00:00 GMT

BEIJING--(Marketwire - 01/12/10) - China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith") and Huaqi Information Digital Technology Co. Ltd. ("aigo"), a leading brand in consumer digital products marketed in China, today announced the joint promotion of next generation motion sensor game content. As part of the companies' strategy, they will promote six phones designed and manufactured by TechFaith with state-of-the-art motion sensor technology, tailored for interactive mobile gamers. The next generation motion sensor gaming content is expected to become available in the China market in the first half of 2010 on a dedicated online aigo motion sensor game content platform. TechFaith's wholly-owned subsidiary, 798 game, will provide the gaming content for the platform.

The six new mobile phones will target gamers that play sporting, exercise and motion-intensive games. Customers will be able to download games directly onto their mobile phones off of a dedicated website. Importantly, in addition to state-of-the-art motion sensor technology, the six new models all have remote controller functions for playing set-top-box games, along with chipsets supporting dual mode GSM and WCDMA. Approximately 300,000 total units of the six mobile phones are expected to ship in the China market in 2010.

Mr. Defu Dong, Chairman and CEO of TechFaith, said, "The convergence of mobile phones and gaming continues to move forward at a considerable pace. By launching dedicated mobile phones, tailored gaming content and rich online websites, we will provide better one stop service to our ODP customers to help them improve on the gross margin of traditional handsets with high value add, while establishing ourselves as one of the market's leaders."

Fei Kong, General Manager of Huaqi Mobile, a subsidiary of Huaqi Information Digital Technology Co. Ltd., said, "This is a great offering for the market and we are excited to have such a strong partner in our launch. We fully support TechFaith's vision of mobile phones as a gaming platform. We think this is a very significant business opportunity and feel we have the right product offering to get consumers excited. Designing state-of-the-art motion sensor technology into mobile phones is an ideal application that fits the aigo brand name very well."

About TechFaith

�
--  TechFaith engages in the development and production of middle to high end
    handsets and tailor made handsets. TechFaith's original developed products
    include: (1) multimedia phones and dual mode dual card handsets of multiple
    wireless technology combination such as GSM/GSM, GSM/CDMA, GSM/WCDMA,
    GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and Pocket PC phones;
    and (3) handsets with interactive online gaming and professional game terminals
    with phone functionality.
--  With the capability of developing Middleware Application MMI/UI software on
    2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and 3.5G(HSDPA)
    communication technologies, TechFaith is able to provide Middleware Application
    MMI/UI software packages that fulfill the specifications of handset brand owners
    and carriers in the global market. For more information, please visit
    www.techfaithwireless.com.
--  TechFaith is targeting both the mobile and online PC gaming markets through
    its websites www.798uu.com and www.798game.com with gaming content developed
    internally, co-developed and licensed from third parties.

About aigo

Founded in 1993, Huaqi Information Digital Technology Co. Ltd. currently employs over 1,900 employees in more than 17 nationwide branches in China and five overseas subsidiaries. This dedicated team has developed the "aigo" brand into a leader in many of China's technology markets.

The aigo product line includes:

�
--  aigo MP4 players
--  aigo RMVB-compatible MP5 players
--  aigo portable storage devices
--  aigo digital cameras
--  aigopen designated as the exclusive guide system for the Traveling Olympic
    Exhibition

Safe Harbor Statement

Contact:


 
For further information, please contact:
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
ir@techfaith.cn
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
cntf@globalirpartners.com
For aigo
Wu Guanting
Huaqi Information Digital Technology Co. Ltd
Tel:+ 86-10-62606290
wuguanting@huaqi.com

[Press Release] TechFaith Completes Acquisition of QiGi

05 Jan 2010 12:00:00 GMT

BEIJING--(Marketwire - 01/05/10) - China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith") today announced the completion of its acquisition of 100% of QiGi Future Technology Co., Ltd. (Beijing) ("QiGi") in an all-stock deal valued at US$12.0 million based on the closing price of TechFaith's ADSs on NASDAQ on July 28, 2009, which was US$2.40 per ADS. TechFaith has also agreed to provide a US$500,000 working capital line. Under terms of the agreement, the number of ordinary shares issued will be adjusted if QiGi does not achieve a net income of over US$8.0 million for the fiscal year of 2010 and over US$10.0 million for the fiscal year of 2011.

Mr. Defu Dong, Chairman and CEO of TechFaith, commented, "We expect this transaction to contribute to our business going forward as we continue to build momentum. We expect this important acquisition will help in the efforts of our branding business to target enterprise users and operator tailored customers. We believe the branding business will lead to other business opportunities for TechFaith over the long term and we are very optimistic about the future of QiGi as a key TechFaith brand."

About TechFaith

�
--  TechFaith engages in the development and production of middle to high end
    handsets and tailor made handsets. TechFaith's original developed products
    include: (1) multimedia phones and dual mode dual card handsets of multiple
    wireless technology combination such as GSM/GSM, GSM/CDMA, GSM/WCDMA,
    GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and Pocket PC phones;
    and (3) handsets with interactive online gaming and professional game terminals
    with phone functionality.
--  With the capability of developing Middleware Application MMI/UI software on
    2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and 3.5G(HSDPA)
    communication technologies, TechFaith is able to provide Middleware Application
    MMI/UI software packages that fulfill the specifications of handset brand owners
    and carriers in the global market. For more information, please visit
    www.techfaithwireless.com.
--  TechFaith is targeting both the mobile and online PC gaming markets through
    its websites www.798uu.com and www.798game.com with gaming content developed
    internally, co-developed and licensed from third parties.

Safe Harbor Statement

Contact:


 
CONTACTS:
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
ir@techfaith.cn
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
cntf@globalirpartners.com

[Press Release] TechFaith Further Penetrates International Market

22 Dec 2009 13:00:00 GMT

BEIJING--(Marketwire - 12/22/09) - China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith") today announced its further penetration of the international market with the shipment of an analog TV phone in significant volume to one of Mexico's leading cellphone network operators.

The high-end GSM phone features an analog TV function, creating a powerful communications and entertainment platform. Consumers can also use the mobile phone as a surveillance monitor. The model started shipping into Mexico in the third quarter. Based on positive operating and consumer feedback, TechFaith is optimistic that it will receive additional orders to cover major countries across Latin America.

Mr. Defu Dong, Chairman and CEO of TechFaith, commented, "This is a great phone offering consumers a power entertainment and communications platform at a reasonable price. We are very pleased with initial sales, demand for continued orders, and our further penetration of the important Latin American market. We expect to launch more innovative products into the Latin American market in the first half of 2010, given the considerable opportunity there for us to increase our ODP business."

About TechFaith

�
--  TechFaith engages in the development and production of middle to high
    end handsets and tailor made handsets.  TechFaith's original developed
    products include: (1) multimedia phones and dual mode dual card handsets of
    multiple wireless technology combination such as GSM/GSM, GSM/CDMA,
    GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and
    Pocket PC phones; and (3) handsets with interactive online gaming and
    professional game terminals with phone functionality.
--  With the capability of developing Middleware Application MMI/UI
    software on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and
    3.5G(HSDPA) communication technologies, TechFaith is able to provide
    Middleware Application MMI/UI software packages that fulfill the
    specifications of handset brand owners and carriers in the global market.
    For more information, please visit www.techfaithwireless.com.
--  TechFaith is targeting both the mobile and online PC gaming markets
    through its websites www.798uu.com and www.798game.com with gaming content
    developed internally, co-developed and licensed from third parties.

Safe Harbor Statement

Contact:


 
CONTACTS:
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
ir@techfaith.cn
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
cntf@globalirpartners.com

[Press Release] TechFaith Reports Third Quarter 2009 Financial Results

23 Nov 2009 21:00:00 GMT

    Revenue Beats Prior Guidance; Gross Margin Improves to 19.5%
    Operating Profit Increases by 156.4% Compared with the Previous Quarter
    Company Expects Continued Sequential Growth in the Fourth Quarter Led by
    Robust Feature Phone, Smartphone and Wireless Data Card Sales

China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith" or the "Company") today announced its unaudited financial results for the third quarter ended September 30, 2009.

For the third quarter of 2009, TechFaith reported net revenues of US$52.8 million, a 5.9% increase compared to US$49.8 million in the previous quarter. This is above the high end of the Company's prior guidance for third quarter of 2009 revenues, which was in the range of US$47 million to US$52 million. Gross profit for the third quarter of 2009 was US$10.3 million, an 8.4% increase compared to US$9.5 million in the previous quarter. Gross margin for the third quarter of 2009 was 19.5% compared to 19.0% in the previous quarter.

Operating expense for the quarter was US$5.0 million, a 32.3% decrease compared to US$7.3 million in the previous quarter and a 55.7% decrease compared to US$11.2 million in the third quarter of 2008.

Operating income for the third quarter of 2009 was US$5.6 million, a 156.4% increase compared to US$2.2 million in the second quarter of 2009 and an even larger increase over US$0.28 million in the third quarter of 2008.

Net loss attributable to TechFaith for the third quarter of 2009 was US$3.4 million. This compares to net income of US$4.5 million attributable to Techfaith in the second quarter of 2009, and compares to net income of US$0.45 million in the third quarter of 2008. The net loss attributable to TechFaith for the third quarter of 2009 included a US$9.2 million non-cash charge as a result of change in fair value of the derivatives associated with a convertible debt.

Defu Dong, TechFaith's Chairman and CEO, said, "In the third quarter we achieved better than expected results due to our team's execution on opportunities in our core original developed product business. Revenue growth in our smartphone business was led by our high-end models, which carry a higher average selling price in the domestic China market. Feature phone sales increased significantly due to the increased sales of our high-end GSM phones and dual mode WCDMA plus GSM phones and the continued sales of our 3G data cards in China. In the international market, we made further progress in selling our high-end GSM phones into Latin America and South East Asia, selling our dual-mode phones into Europe, and selling our 3G phones and data cards into South East Asia. We continue to expect even better performance from our original developed product business moving forward based on anticipated longer-term growth in China's 3G market and certain international markets, combined with the recovery already underway in the global mobile phone market."

"We continue to make considerable progress in our branded phone strategy, under which we will launch tailored models into specific market segments using our subsidiary's brand or a relevant licensed brand name. In line with our strategy, we announced at the end of Q3 2009 that TechFaith would set up a new company to license well-known international brands for high-end, brand-name mobile phones that target fashion-conscious and high-end mobile phone users, teenagers and sports fans. TechFaith also expects to close its acquisition of QiGi by early 2010. This is an important transaction for us in our efforts to target enterprise users and operator tailored customers. We believe the branding business will lead to other business opportunities for TechFaith over the long term with higher gross margins."

"TechFaith continues to make significant progress in its mobile and PC online gaming business. We continue to develop our own proprietary content for both mobile and PC online gamers, while also working with third party developers. Our approach has led to some very encouraging initial achievements, from securing investment backing earlier this year to the recently announced agreement with several Chinese mobile phone companies to build in our games with the service fee payments for the mobile phone games. As a result, we expect our mobile phone gaming business to realize initial revenues in the fourth quarter this year."

Fourth Quarter 2009 Outlook

TechFaith currently expects revenues to be in the range of US$52 million to US$55 million for the fourth quarter of 2009, including incremental revenues from the Company's mobile gaming business. The Company is targeting initial profitability of its mobile gaming business in the fourth quarter of 2009. This forecast reflects TechFaith's current and preliminary view, which is subject to change.

Conference Call

TechFaith will hold a call on Monday, November 23, 2009 at 7:00 p.m. U.S. Eastern Time (8:00 a.m. November 24, 2009 in Beijing), with dial in phone number +1-617-213-3523 and conference call passcode 97135492. A live webcast of the conference call will also be available on TechFaith's website at www.techfaithwireless.com.

A replay of the call will be available approximately one hour after the conclusion of the live call through 12:00 p.m. on November 30, 2009, U.S. Eastern Time (1:00 a.m. December 1, 2009 in Beijing) by telephone at +1-617-801-6888. To access the replay, use passcode 76917985. A webcast replay will also be available at www.techfaithwireless.com.

About TechFaith

� TechFaith engages in the development and production of middle to high end handsets and tailor made handsets. TechFaith's original developed products include: (1) multimedia phones and dual mode dual card handsets of multiple wireless technology combination such as GSM/GSM, GSM/CDMA, GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and Pocket PC phones; and (3) handsets with interactive online gaming and professional game terminals with phone functionality. With the capability of developing Middleware Application MMI/UI software on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and 3.5G(HSDPA) communication technologies, TechFaith is able to provide Middleware Application MMI/UI software packages that fulfill the specifications of handset brand owners and carriers in the global market. For more information, please visit www.techfaithwireless.com. TechFaith is targeting both the mobile and online PC gaming markets through its websites www.798uu.com and www.798game.com with gaming content developed internally, co-developed and licensed from third parties.

Safe Harbor Statement

� CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands of U.S. Dollars, except share and per share/ADS data and unless otherwise stated) Three Months Ended Nine Months Ended September 30 June 30 September 30 ------------------------ ----------- ------------------------ 2009 2008 2009 2009 2008 (As (As (1) adjusted)(2) (1) (1) adjusted)(2) ----------- ----------- ----------- ----------- ----------- Revenues: Handset design $ 998 $ 1,774 $ 1,657 $ 3,310 $ 11,955 Product sales 51,801 49,036 48,036 147,852 145,040 Wireless software and applications - - 153 153 - ----------- ----------- ----------- ----------- ----------- Total net revenues $ 52,799 $ 50,810 $ 49,846 $ 151,315 $ 156,995 Cost of revenues: Handset design $ 942 $ 1,908 $ 1,082 $ 2,832 $ 6,761 Product sales 41,577 39,576 39,284 119,909 117,252 Total cost of revenues $ 42,519 $ 41,484 $ 40,366 $ 122,741 $ 124,013 Gross Profit $ 10,280 $ 9,326 $ 9,480 $ 28,574 $ 32,982 Operating expenses: General and administ- rative $ 1,459 $ 6,143 $ 3,479 $ 6,678 $ 12,121 Research and development 2,556 3,462 3,189 8,841 15,583 Selling and marketing 987 1,676 624 2,413 3,829 Exchange loss (gain) (52) (100) 21 (17) 415 ----------- ----------- ----------- ----------- ----------- Total operating expenses $ 4,950 $ 11,181 $ 7,313 $ 17,915 $ 31,948 Government subsidy income 257 2,136 12 274 4,699 Income from operations $ 5,587 $ 281 $ 2,179 $ 10,933 $ 5,733 Interest expense (165) (5) (62) (257) (21) Interest income 165 405 156 498 1,321 Other income (expense), net (94) (196) 38 (56) (211) Change in fair value of derivatives associated with Convertible Debt (9,214) - 2,113 (7,101) - Change in fair value of put option (39) (201) - (57) (192) ----------- ----------- ----------- ----------- ----------- Income (Loss) before income taxes $ (3,760) $ 284 $ 4,424 $ 3,960 $ 6,630 Income tax benefit (expenses) (1,314) (21) 106 (2,427) (21) ----------- ----------- ----------- ----------- ----------- Net (loss) income $ (5,074) $ 263 $ 4,530 $ 1,533 $ 6,609 Less: net income (loss) attributable to the noncontrolling interest(2) 1,674 188 (26) 1,692 568 ----------- ----------- ----------- ----------- ----------- Net income (loss) attributable to Techfaith $ (3,400) $ 451 $ 4,504 $ 3,225 $ 7,177 =========== =========== =========== =========== =========== Net income (loss) attributable to Techfaith per share Basic $ (0.01) $ 0.00 $ 0.01 $ 0.01 $ 0.01 =========== =========== =========== =========== =========== Diluted $ (0.01) $ 0.00 $ 0.01 $ 0.01 $ 0.01 =========== =========== =========== =========== =========== Net income (loss) attributable to Techfaith per ADS* Basic $ (0.08) $ 0.01 $ 0.10 $ 0.07 $ 0.17 =========== =========== =========== =========== =========== Diluted $ (0.08) $ 0.01 $ 0.10 $ 0.07 $ 0.17 =========== =========== =========== =========== =========== Weighted average shares outstanding Basic 650,116,398 650,027,078 650,034,590 650,062,159 649,951,394 =========== =========== =========== =========== =========== Diluted 650,116,398 650,055,184 679,148,185 650,066,429 650,037,724 =========== =========== =========== =========== =========== Revenue Breakout 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 ------- ------- ------- ------- ------- ------- ------- Handset design Design fees $ 3,264 $ 4,656 $ 1,051 $ 6,517 $ 186 $ 645 $ 449 Royalty $ 534 $ 277 $ 166 $ 181 $ - $ 245 $ 102 Components sales related to design $ 731 $ 520 $ 544 $ 465 $ 469 $ 745 $ 446 Service income $ 35 $ 164 $ 13 $ 5 $ - $ 22 $ 1 Product sales Smart Phone $18,123 $26,979 $29,367 $25,483 $27,186 $23,061 $23,750 Feature phone $23,156 $22,774 $18,525 $17,880 $20,190 $16,038 $22,442 Wireless module $ 3,752 $ 1,220 $ 1,035 $ 1,324 $ 639 $ 8,937 $ 5,497 Other components $ - $ - $ 109 $ - $ - $ - $ 112 Wireless software and applications $ - $ - $ - $ - $ - $ 153 $ - ------- ------- ------- ------- ------- ------- ------- Total net revenues $49,595 $56,590 $50,810 $51,855 $48,670 $49,846 $52,799 ======= ======= ======= ======= ======= ======= ======= CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands of U.S. Dollars) September 30, September 30, 2009 2008 June 30, 2009 (As (1) adjusted)(2) (1) ------------- ------------ ------------- Assets Current assets: Cash and cash equivalents $ 128,937 $ 103,578 $ 111,794 Restricted cash 81 80 81 Accounts receivable 24,175 40,447 24,376 Amount due from related parties 7,041 5,609 7,144 Notes receivable - 101 693 Inventories 26,192 43,022 27,642 Prepaid expenses and other current assets 15,292 12,804 12,745 Deferred tax assets-current 127 - 96 ------------- ------------ ------------- Total current assets $ 201,845 $ 205,641 $ 184,571 ------------- ------------ ------------- Plant, machinery and equipment, net $ 21,616 $ 26,345 $ 22,589 Construction in progress 23,548 15,655 23,498 Acquired intangible assets, net 665 1,747 758 Deferred tax assets-noncurrent 75 - 117 Goodwill 619 606 619 ------------- ------------ ------------- Total assets $ 248,368 $ 249,994 $ 232,152 ============= ============ ============= Liabilities and shareholders' equity Current liabilities: Current portion of Long term payable $ 916 $ 1,185 $ 1,028 Accounts payable 5,817 40,569 6,042 Amount due to related parties 153 475 297 Accrued expenses and other current liabilities 9,409 8,874 11,726 Advance from customers 9,977 5,941 6,771 Deferred revenue 945 1,372 773 Income tax payable 1,453 171 149 ------------- ------------ ------------- Total current liabilities $ 28,670 $ 58,587 $ 26,786 Convertible debt 16,907 - 7,529 Total liabilities $ 45,577 $ 58,587 $ 34,315 ------------- ------------ ------------- Shareholders' equity Ordinary shares $ 13 $ 13 $ 13 Additional paid-in capital 114,275 110,513 105,848 Treasury stock - (4,628) - Accumulated other comprehensive income 23,881 24,719 23,838 Statutory reserve 8,542 6,813 8,542 Retained earnings 55,205 52,885 58,605 ------------- ------------ ------------- Total CNTF shareholders' equity $ 201,916 $ 190,315 $ 196,846 ------------- ------------ ------------- Noncontrolling interest (2) $ 875 $ 1,092 $ 991 ------------- ------------ ------------- Total shareholders' equity $ 202,791 $ 191,407 $ 197,837 ------------- ------------ ------------- Total liabilities and shareholders' equity $ 248,368 $ 249,994 $ 232,152 ============= ============ ============= (1) Effective January 1, 2009, the Company adopted the authoritative guidance issued by the FASB that changes the accounting and reporting for non-controlling interests, which was retrospectively applied. This guidance requires non-controlling interests to be separately presented as a component of stockholders' equity on the unaudited condensed consolidated financial statements (2) September 30, 2008 balances were extracted from the form 6-K for the quarters ended September 30, 2008, as adjusted resulting from the adoption of the authoritative guidance issued by the FASB that changes the accounting and reporting for non-controlling interests. * ADS: American depositary shares. 1 ADS is equal to 15 ordinary shares.

Contact:

CONTACTS:
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
ir@techfaith.cn
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
cntf@globalirpartners.com

[Press Release] TechFaith Schedules 3Q 2009 Financial Results Conference Call

20 Oct 2009 11:30:00 GMT

BEIJING--(Marketwire - 10/20/09) - China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith" or the "Company"), a China-based original developed product (ODP) provider focused on the original design and development of handsets and sales of finished products, today announced that it will hold a conference call to discuss the Company's financial results for the third quarter 2009 and business outlook.

The dial-in number for the live audio call, which will begin on Monday, November 23, 2009 at 7:00 p.m. U.S. Eastern Time (8:00 a.m. November 24, 2009 in Beijing), is +1-617-614-3523. The conference call passcode is 97135492. A live webcast of the conference call will also be available on TechFaith's website at www.techfaithwireless.com.

A replay of the call will be available approximately one hour after the conclusion of the live call through 12:00 p.m. U.S. Eastern Time on November 30, 2009 (1:00 a.m., December 1, 2009 in Beijing) by telephone at +1-617-801-6888. To access the replay, use passcode 76917985. A webcast replay will also be available at www.techfaithwireless.com.

About TechFaith

�
--  TechFaith engages in the development and production of middle to high
    end handsets and tailor made handsets.  TechFaith's original developed
    products include: (1) multimedia phones and dual mode dual card handsets of
    multiple wireless technology combination such as GSM/GSM, GSM/CDMA,
    GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and
    Pocket PC phones; and (3) handsets with interactive online gaming and
    professional game terminals with phone functionality.
--  With the capability of developing Middleware Application MMI/UI
    software on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and
    3.5G(HSDPA) communication technologies, TechFaith is able to provide
    Middleware Application MMI/UI software packages that fulfill the
    specifications of handset brand owners and carriers in the global market.
    For more information, please visit www.techfaithwireless.com.
--  TechFaith is targeting both the mobile and online PC gaming markets
    through its websites www.798uu.com and www.798game.com, respectively.
    Three massive multiplayer online role-playing games (MMORPGs) are planned
    to launch in 2009 for online PC users on www.798game.com.  16 titles are
    planned to launch for mobile gamers on the company's Chinese mobile games
    website www.798uu.com.

Safe Harbor Statement

Contact:


 
CONTACTS:
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
ir@techfaith.cn
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
cntf@globalirpartners.com

[Press Release] Chinese Mobile Phone Branding Companies Enter Agreements With TechFaith for Its

19 Oct 2009 11:24:00 GMT

BEIJING--(Marketwire - 10/19/09) - China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith") today announced its signing of agreements with Chinese mobile phone branding companies aigo, Doov, AMT, QiGi and Flyfot. Under the agreements, TechFaith, through its wholly-owned gaming subsidiary 798 Entertainment Limited ("798 Entertainment," formerly known as One Net Entertainment Limited), will provide game content services to these Chinese mobile phone branding companies. These mobile phone branding companies will build the game contents provided by 798 Entertainment into their mobile phones. In addition to the built-in games, mobile phone users can also download other 798 mobile phone games after purchasing such mobile phones. The mobile phone branding companies will pay service fees to 798 Entertainment. The mobile phone customers can play the built-in and other downloaded games free of charge, and will be charged additional fees when they purchase accessories for the games.

Mr. Defu Dong, Chairman and CEO of TechFaith, commented, "The agreements further confirmed our view that there will be an increasing convergence of mobile phone contents and handsets as mobile network operators and mobile handset branding companies seek to better differentiate themselves for a competitive advantage. We believe that with increasing 3G network penetration in China, mobile phone games will enter a period of fast development. Consumer demand for content-rich mobile handsets is driving the convergence trend, which we expect will result in a premium valuation being placed on contents. Given the considerable opportunity in content development, our gaming development teams will continue to focus on designing new games for our partners."

About TechFaith

�
--  TechFaith engages in the development and production of middle to high
    end handsets and tailor made handsets.  TechFaith's original developed
    products include: (1) multimedia phones and dual mode dual card handsets of
    multiple wireless technology combination such as GSM/GSM, GSM/CDMA,
    GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and
    Pocket PC phones; and (3) handsets with interactive online gaming and
    professional game terminals with phone functionality.

--  With the capability of developing Middleware Application MMI/UI software
    on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and
    3.5G(HSDPA) communication technologies, TechFaith is able to provide
    Middleware Application MMI/UI software packages that fulfill the
    specifications of handset brand owners and carriers in the global market.
    For more information, please visit www.techfaithwireless.com.

--  TechFaith is targeting both the mobile and online PC gaming markets
    through its websites www.798uu.com and www.798game.com, respectively.
    Three massive multiplayer online role-playing games (MMORPGs) are planned
    to launch in 2009 for online PC users on www.798game.com.  16 titles are
    planned to launch for mobile gamers on the company's Chinese mobile games
    website www.798uu.com.

Safe Harbor Statement

Contact:


 
CONTACTS:
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
ir@techfaith.cn
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
cntf@globalirpartners.com

[Press Release] TechFaith and Dmagicmobile Form Joint Venture to License Well-Known Brands

30 Sep 2009 12:59:00 GMT

BEIJING--(Marketwire - 09/30/09) - China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith") and D Magic Mobile (Shanghai) Incorporation ("Dmagicmobile") today announced the formation of a joint venture company in China. The joint venture will be called Glomate Mobile (Beijing) Co., Ltd. ("Glomate"). Glomate plans to license well-known, international bands through Dmagicmobile for high-end, brand-name mobile phones that target fashion-conscious and high-end mobile phone users, teenagers and sports fans. Initial product launches are scheduled for the fourth quarter 2009. TechFaith is a China-based original developed product provider focused on the original design and sales of cellphone products. Dmagicmobile is a cooperative licensee with a number of renowned international brands in the mobile telecommunications sector, including Barbie(TM).

Mr. Defu Dong, Chairman and CEO of TechFaith, said, "This is an important development for TechFaith. Our approach since founding the company has been to use dedicated resources able to focus on unique market opportunities. We have successfully applied this model to our existing business. In the mobile phone business, we continue to drive growth in our ODP business and will now add on the new, Glomate business. Our ODP business will continue to focus on domestic and international brand name companies, and operators with mid- to high-end product offerings with flexible customization. We expect Glomate, will give us a vehicle to even better differentiate our mobile phone offerings in the marketplace. Unlike in other markets, in China carriers do not subsidize most consumer purchases of mobile phones. Most consumers in China decide what phone they want to spend their money on and then buy it. With potentially several thousand mobile phones to pick from, a well-known brand is a powerful competitive differentiator. Similar to watches, clothes and other products, consumers will be able to buy a mobile phone with a brand that they identify with from a lifestyle, image or goal standpoint. A brand, therefore, can prove to be far more powerful than a new technology, as technological developments are typically commoditized and adopted by all mobile phone developers. As we move forward, we expect our Glomate business will bring us additional, higher gross margin business opportunities."

Mr. Samuel Pang, Dmagicmobile's President and CEO, commented: "Today's announcement represents a significant milestone. Our partnership with TechFaith is a natural extension of both companies' prior relationship and successful track records. Dmagicmobile understands the complexities of the branded market and what is involved in bringing a profitable, successful brand to market as a mobile phone. Our new joint venture will help both companies more effectively address this business opportunity. Glomate is a key element of our major business expansion as we expect it will attract more international brand owners wanting to address their interest in our sustainable cooperation. We look forward to leading the new company in its strategy to leverage the unique strengths of Techfaith and Dmagicmobile, and to bring successful profitable growth to both companies."

About TechFaith

TechFaith (NASDAQ:CNTF - News) is a China-based original developed product provider focused on the original design and sales of cellphone products. TechFaith is also striving to build a leading PC and online gaming business through its wholly-owned subsidiary, One Net Entertainment Limited. One Net Entertainment is leveraging an integrated model that combines self-developed as well as co-developed and licensed content. TechFaith employs approximately 500 professionals, of whom approximately 90% are engineers.

�
--  TechFaith engages in the development and production of middle to high
    end handsets and tailor made handsets.  TechFaith's original developed
    products include: (1) multimedia phones and dual mode dual card handsets of
    multiple wireless technology combination such as GSM/GSM, GSM/CDMA,
    GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and
    Pocket PC phones; and (3) handsets with interactive online gaming and
    professional game terminals with phone functionality.

--  With the capability of developing Middleware Application MMI/UI software
    on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and
    3.5G(HSDPA) communication technologies, TechFaith is able to provide
    Middleware Application MMI/UI software packages that fulfill the
    specifications of handset brand owners and carriers in the global market.
    For more information, please visit www.techfaithwireless.com.

--  TechFaith is targeting both the mobile and online PC gaming markets
    through its websites www.798uu.com and www.798game.com, respectively.
    Three massive multiplayer online role-playing games (MMORPGs) are planned
    to launch in 2009 for online PC users on www.798game.com.  16 titles are
    planned to launch for mobile gamers on the company's Chinese mobile games
    website www.798uu.com.

About Dmagicmobile

D Magic Mobile (Shanghai) Incorporation ("Dmagicmobile") is a wholly foreign-owned enterprise registered in Shanghai. As the cooperative partner of a number of renowned multinational corporations including Mattel, Inc (Barbie Brand), and several entertainment companies, Dmagicmobile specializes in the niche market segment. Supported by a team of over 100, Dmagicmobile provides comprehensive solutions of research and development, ID design, UI design, packaging solutions, product strategies, after-sale services and sales and marketing programs for the mobile telecommunications sector.

Safe Harbor Statement

Contact:


 
CONTACTS:
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
ir@techfaith.cn
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
cntf@globalirpartners.com
Terence Lam
D Magic Mobile (Shanghai) Incorporation
pr@dmagicmobile.com

[Press Release] TechFaith to Present at Susquehanna Financial Group's Third Annual Beijing

15 Sep 2009 12:00:00 GMT

BEIJING, CHINA--(Marketwire - 09/15/09) - China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith"), a China-based original developed product (ODP) provider focused on the original design and development of handsets and sales of finished products, today announced that it is scheduled to present at Susquehanna Financial Group's Third Annual Beijing Management Summit. The conference presentation is scheduled for 8am on Thursday, September 17 at the Grand Hyatt Hotel, Beijing. Mr. Defu Dong, Chairman and CEO of TechFaith, will be presenting.

About TechFaith

TechFaith (NASDAQ:CNTF - News) is a China-based original developed product provider focused on the original design and development of handsets and sales of finished products. TechFaith is also striving to build a leading PC and online gaming business through its wholly-owned subsidiary, One Net Entertainment Limited. One Net Entertainment is leveraging an integrated model that combines self-developed as well as co-developed and licensed content. TechFaith employs approximately 500 professionals, of whom approximately 90% are engineers.

ï¿½
--  TechFaith engages in the development and production of middle to high
    end handsets and tailor made handsets.  TechFaith's original developed
    products include: (1) multimedia phones and dual mode dual card handsets of
    multiple wireless technology combination such as GSM/GSM, GSM/CDMA,
    GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and
    Pocket PC phones; and (3) handsets with interactive online gaming and
    professional game terminals with phone functionality.

--  With the capability of developing Middleware Application MMI/UI software
    on 2G/2.5G (GSM/GPRS, CDMA1X), 3G (EV-DO, WCDMA/UMTS, TD-SCDMA) and 3.5G
    (HSDPA) communication technologies, TechFaith is able to provide Middleware
    Application MMI/UI software packages that fulfill the specifications of
    handset brand owners and carriers in the global market. For more
    information, please visit www.techfaithwireless.com

--  TechFaith is targeting both the mobile and online PC gaming markets
    through its websites www.798uu.com and www.798game.com, respectively.
    Three massive multiplayer online role-playing games (MMORPGs) are planned
    to launch in 2009 for online PC users on www.798game.com.  16 titles are
    available for mobile gamers on the company's Chinese mobile games website
    www.798uu.com

Safe Harbor Statement

This announcement may contain forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "scheduled," "will," "expects," "anticipates, "future," "intends," "plans," "believes," "estimates," "confident," "outlook" and similar statements. Among other things, the business outlook and strategic and operational plans of TechFaith contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. TechFaith does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Contact:


 
CONTACTS:
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
ir@techfaith.cn
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
cntf@globalirpartners.com

[Press Release] TechFaith Reports Second Quarter 2009 Financial Results

17 Aug 2009 20:00:00 GMT

BEIJING--(Marketwire - 08/17/09) - China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith" or the "Company") today announced its unaudited financial results for the second quarter of 2009 ended June 30, 2009. The Company also announced it has signed a non-binding letter of intent to acquire, with TechFaith stock and cash as consideration, 100% of the Chinese branded mobile phone company QiGi, which is to be valued at US$12.5 million. In addition, the Company announced the resignation of Mr. Wilson Cai from his position as Deputy CEO of TechFaith and from the Company's board of directors citing personal health reasons.

For the second quarter of 2009, TechFaith reported total net revenues of US$49.8 million, a 2.4% increase compared to US$48.7 million in the previous quarter. Gross profit for the second quarter of 2009 was US$9.5 million, a 7.6% increase compared to US$8.8 million in the previous quarter. Gross margin for the second quarter of 2009 was 19.0% compared to 18.1% in the previous quarter. Revenue from product sales remained the same as the previous quarter while revenue from handset design increased about US$1 million from the previous quarter. Operating expense for the quarter was US$7.3 million, a 29.4% increase compared to US$5.7 million in the previous quarter. The operating expenses for the quarter included bad debt provision of US$1.8 million compared to the reversal of bad debt provision of US$0.2 million in the previous quarter.

Net income attributable to Techfaith for the second quarter of 2009 was US$4.5 million, or US$0.10 per weighted average outstanding ADS (basic and diluted), an improvement of 112.4% compared to net income of US$2.1 million, or US$0.05 per weighted average outstanding ADS (basic and diluted) in the previous quarter.

The net income attributable to Techfaith for the second quarter of 2009 included a US$2.1 million gain as a result of change in fair value of the derivatives associated with the convertible debt that was issued to IDGVC Partners in June 2009.

Defu Dong, TechFaith's Chairman and CEO, said, "Results came at the high end of prior guidance in what is not typically a seasonally strong quarter. We continue to gain traction in our core business areas as we further improve and build on our long-term strategy by leveraging our Original Developed Product ("ODP") business. Demand in our core ODP cellphone business is being led by the domestic China 3G market, especially the EVDO and HSDPA data card business, and the WCDMA feature phone sales. While growth in the 3G rollout has been strong for the past few quarters, based on forecasts, we expect an easing in Q3, with a resumption of more stable growth in domestic China 3G market given the considerable pent-up demand in China and expected market growth worldwide."

Mr. Dong continued, "Separately, our design business improved led by the enterprise user's market. We are pleased with the commercialization of several promising products, including our dual-GSM SIM card G6. Our G6 is an exciting device that was designed to serve as a feature-rich mobile phone, and also as both an equally strong mobile gaming platform and a remote control for PC gaming, with advanced motion sensors. We also launched our HSUPA data modem card in the U.S. market in the second half of June. We continue to build up our foundation in the U.S. This is an important market for TechFaith for technology, distribution and network operator relationships. Given the large size and the sophisticated nature of the U.S. market and its demand for high value and performance, we are looking forward to further expanding our product offerings available in the U.S."

"We continue to make progress in developing our gaming business. Our team has completed pre-launch promotions for several of our pending title launches and is working very hard to finalize our initial titles. 16 mobile massive multiplayer online role-playing games (MMORPG) are now available on our Chinese mobile games website www.798uu.com. The MMORPG-"Fairy online" for PC online games is now in open BETA version on our website www.798game.com. We also set up another studio in Shanghai to accelerate development of games. With our successful third party funding a few months ago, we are focused on growing One Net Entertainment as a stand-alone business given its significant potential future upside."

Non-Binding Letter of Intent to Acquire QiGi

TechFaith has signed a non-binding letter of intent to acquire 100% of QiGi in a stock-plus-cash transaction valued at US$12.5 million, comprised of US$0.5 million in cash and 65,934,066 ordinary shares of TechFaith (note: one publicly traded ADS is equal to 15 ordinary shares). The number of ordinary shares to be issued to QiGi's existing shareholders is contingent on QiGi achieving a net income of over US$8.0 million for the fiscal year of 2010 and over US$10.0 million for the fiscal year of 2011 and will be adjusted if the targeted net incomes are not achieved.

Defu Dong, Chairman and CEO of TechFaith, said, "QiGi has grown very quickly to become a leading branded mobile phone company in the China market, especially in smartphones and for enterprise and operator-customized users, and in several important international markets. We believe this transaction will add significant value to TechFaith as we promote and launch TechFaith smartphones in China's domestic market and abroad, especially for enterprise users and operators. With 3G network available in China and future 4G network, there are big business potentials for enterprise solutions that provide smartphones for public security systems, banks, government departments, IT market and home security systems. We are also pleased to have reached agreements with several of QiGi's key managers, including Mr. Enhai Xu, who will continue to serve as President of QiGi, as it will operate largely independently after the acquisition is completed. We are very optimistic about the future of QiGi as an important TechFaith brand."

Management change

The Company announced the resignation of Mr. Wilson Cai from his position as Deputy CEO of TechFaith and from the Company's board of directors effective immediately. Mr. Cai cited personal health concerns for his resignation. Commenting on the resignation, Mr. Dong noted, "We respect his decision and wish Mr. Cai and his family all the best. He has been an active member of our team since 2002 and we will miss him and remember his significant contributions to Techfaith."

Mr. Cai will be replaced on the board of directors by Mr. Dong Deyou, who has served as an executive with TechFaith since 2007 in multiple roles, leveraging his experience in sales, supply chain sourcing and operations.

Third Quarter 2009 Outlook

TechFaith currently expects sequential growth in the second half of 2009 based on improvements in the domestic China and certain international markets. For the third quarter of 2009 the Company expects revenues to be in the range of US$47 million to US$52 million for the third quarter of 2009. The Company expects better performance from its ODP business due to long-term growth in China's 3G market and the recovery already underway in the global cellphone market. TechFaith also expects an acceleration in developing its gaming business in the second half year of 2009.

Conference Call

TechFaith will hold a call on Monday, August 17, 2009 at 7:00 p.m. U.S. Eastern Time (7:00 a.m. August 18, 2009 in Beijing), with dial in phone number +1-617-213-8834 and conference call passcode 95340243. A live webcast of the conference call will also be available on TechFaith's website at www.techfaithwireless.com.

A replay of the call will be available approximately one hour after the conclusion of the live call through 12:00 p.m. on August 24, 2009, U.S. Eastern Time (12:00 a.m., August 25, 2009 in Beijing) by telephone at +1-617-801-6888. To access the replay, use passcode 88857248. A webcast replay will also be available at www.techfaithwireless.com.

About TechFaith

ï¿½
--  TechFaith engages in the development and production of middle to high
    end handsets and tailor made handsets.  TechFaith's original developed
    products include: (1) multimedia phones and dual mode dual card handsets of
    multiple wireless technology combination such as GSM/GSM, GSM/CDMA,
    GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and
    Pocket PC phones; and (3) handsets with interactive online gaming and
    professional game terminals with phone functionality.

--  With the capability of developing Middleware Application MMI/UI software
    on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and
    3.5G(HSDPA) communication technologies, TechFaith is able to provide
    Middleware Application MMI/UI software packages that fulfill the
    specifications of handset brand owners and carriers in the global market.
    For more information, please visit www.techfaithwireless.com.

--  TechFaith is targeting both the mobile and online PC gaming markets
    through its websites www.798uu.com and www.798game.com, respectively.
    Three massive multiplayer online role-playing games (MMORPGs) are planned
    to launch in 2009 for online PC users on www.798game.com.  16 titles are
    planned to launch for mobile gamers on the company's Chinese mobile games
    website www.798uu.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident," "outlook" and similar statements. Among other things, the business outlook and strategic and operational plans of TechFaith contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. TechFaith does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

ï¿½
          CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED
          UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
        (In Thousands of U.S. Dollars, except share and per share/ADS
                      data and unless otherwise stated)

                     Three Months Ended               Six Months Ended
           -------------------------------------  ------------------------
                    June 30            March 31            June 30
           ------------------------  -----------  ------------------------
                            2008                                   2008
               2009    (As adjusted)     2009         2009    (As adjusted)
               (1)           (2)          (1)          (1)          (2)
           -----------  -----------  -----------  -----------  -----------
Revenues:
Handset
 design    $     1,657  $     5,617  $       655  $     2,312  $    10,181
Product
 sales          48,036       50,973       48,015       96,051       96,004
Wireless
 software and
 applications      153            -            -          153            -
           -----------  -----------  -----------  -----------  -----------
Total net
 revenues  $    49,846  $    56,590  $    48,670  $    98,516  $   106,185

Cost of
 revenues:
Handset
 design    $     1,082  $     2,657  $       808  $     1,890  $     4,853
Product
 sales          39,284       39,998       39,048       78,332       77,676
Wireless
 software and
 applications        -            -            -            -            -
           -----------  -----------  -----------  -----------  -----------
Total
 cost of
 revenues  $    40,366  $    42,655  $    39,856  $    80,222  $    82,529

Gross
 Profit    $     9,480  $    13,935  $     8,814  $    18,294  $    23,656

Operating
 expenses:
General and
 admini-
  strative $     3,479  $     2,777  $     1,740  $     5,219  $     5,978
Research
 and
 development     3,189        6,625        3,096        6,285       12,121
Selling and
 marketing         624        1,300          802        1,426        2,153
Exchange loss
 (gain)             21          (19)          14           35          515
           -----------  -----------  -----------  -----------  -----------
Total
 operating
 expenses  $     7,313  $    10,683  $     5,652  $    12,965  $    20,767

Government
 subsidy
 income             12           22            5           17        2,563
Other
 operating
 income              -            -            -            -            -

Income
 from
 opera-
  tions    $     2,179  $     3,274  $     3,167  $     5,346  $     5,452

Interest
 expense           (62)          (7)         (30)         (92)         (16)
Interest
 income            156          499          177          333          916
Other income
 (expense),
 net                38          (18)           -           38          (15)
Change in fair
 value of
 derivatives
 associated
 with
 Convertible
 Debt            2,113            -            -        2,113            -
Change in fair
 value of put
 option              -           (6)         (18)         (18)           9
           -----------  -----------  -----------  -----------  -----------
Income before
 income
 taxes     $     4,424  $     3,742  $     3,296  $     7,720  $     6,346
Income tax         106            -       (1,219)      (1,113)           -
           -----------  -----------  -----------  -----------  -----------
Net (loss)
 income    $     4,530  $     3,742  $     2,077  $     6,607  $     6,346
Less: net
 income
 attributable
 to the
 noncontrolling
 interest(2)       (26)         121           44           18          380
           -----------  -----------  -----------  -----------  -----------
Net income
 attributable
 to
 Techfaith $     4,504  $     3,863  $     2,121  $     6,625  $     6,726
           ===========  ===========  ===========  ===========  ===========

Net income
 per ordinary
 share
  Basic    $      0.01  $      0.01  $         -  $      0.01  $      0.01
           ===========  ===========  ===========  ===========  ===========
  Diluted  $      0.01  $      0.01  $         -  $      0.01  $      0.01
           ===========  ===========  ===========  ===========  ===========

Net income
 per ADS*
  Basic    $      0.10  $      0.09  $      0.05  $      0.15  $      0.16
           ===========  ===========  ===========  ===========  ===========
  Diluted  $      0.10  $      0.09  $      0.05  $      0.15  $      0.16
           ===========  ===========  ===========  ===========  ===========

Weighted
 average
 ordinary
 shares
 outstanding
  Basic    650,034,590  649,913,136  650,034,590  650,034,590  649,913,136
           ===========  ===========  ===========  ===========  ===========
  Diluted  679,148,185  649,943,575  650,034,590  664,671,776  650,028,578
           ===========  ===========  ===========  ===========  ===========



Revenue Breakout         1Q08     2Q08     3Q08     4Q08     1Q09     2Q09
                      -------- -------- -------- -------- -------- --------
Handset design
  Design fees         $  3,264 $  4,656 $  1,051 $  6,517 $    186 $    645
  Royalty             $    534 $    277 $    166 $    181 $      - $    245
  Components sales
   related to design  $    731 $    520 $    544 $    465 $    469 $    745
  Service income      $     35 $    164 $     13 $      5 $      - $     22

Product sales
  Smart Phone         $ 18,123 $ 26,979 $ 29,367 $ 25,483 $ 27,186 $ 23,061
  Feature phone       $ 23,156 $ 22,774 $ 18,525 $ 17,880 $ 20,190 $ 16,038
  Wireless module     $  3,752 $  1,220 $  1,035 $  1,324 $    639 $  8,937
  Other components    $      - $      - $    109 $      - $      - $      -

Wireless software and
 applications         $      - $      - $      - $      - $      - $    153
                      -------- -------- -------- -------- -------- --------
Total net revenues    $ 49,595 $ 56,590 $ 50,810 $ 51,855 $ 48,670 $ 49,846
                      ======== ======== ======== ======== ======== ========





        CHINA TECHFAITH WIRELESS COMMUNICATION TECHNOLOGY LIMITED
              UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                      (In Thousands of U.S. Dollars)

                                                    June 30,
                                       June 30,       2008       March 31,
                                         2009    (As adjusted)     2009
                                         (1)          (2)           (1)
                                     ------------ -----------  ------------
Assets
Current assets:
Cash and cash equivalents            $    111,794 $    72,163  $     97,499
Restricted cash                                81         417            80
Accounts receivable                        24,376      36,996        29,812
Amount due from related parties             7,144       4,842         7,954
Notes receivable                              693       1,706           443
Inventories                                27,642      48,867        30,367
Prepaid expenses and other current
 assets                                    12,745      10,788        11,917
Deferred tax assets-current                    96           -            78
                                     ------------ -----------  ------------
Total current assets                 $    184,571 $   175,779  $    178,150
                                     ------------ -----------  ------------

Deposits for acquisition of plant,
 machinery and equipment, and
 acquisition of intangible assets    $          - $    15,436  $          -
Plant, machinery and equipment, net        22,589      27,309        23,255
Construction in progress                   23,498           -        23,521
Acquired intangible assets, net               758       1,919           838
Deferred tax assets-noncurrent                117           -            29
Goodwill                                      619         606           606
                                     ------------ -----------  ------------
Total assets                         $    232,152 $   221,049  $    226,399
                                     ============ ===========  ============

Liabilities and shareholders' equity
Current liabilities:
Current portion of Long term payable $      1,028 $     1,228  $      1,211
Accounts payable                            6,042      11,224         7,362
Amount due to related parties                 297         224           438
Accrued expenses and other current
 liabilities                               11,726      11,058         9,597
Advance from customers                      6,771       5,804        11,839
Deferred revenue                              773       1,164         1,431
Income tax payable                            149         148         1,343
                                     ------------ -----------  ------------
Total current liabilities            $     26,786 $    30,850  $     33,221

Convertible debt                            7,529           -             -
Long-term payable                               -         125             -
                                     ------------ -----------  ------------

Total liabilities                    $     34,315 $    30,975  $     33,221
                                     ------------ -----------  ------------

Shareholders' equity
Ordinary shares                      $         13 $        13  $         13
Additional paid-in capital                105,848     110,441       105,847
Treasury stock                                  -      (4,628)            -
Accumulated other comprehensive
 income                                    23,838      23,721        23,711
Statutory reserve                           8,542       6,813         8,542
Retained earnings                          58,605      52,434        54,101
                                     ------------ -----------  ------------
Total Techfaith shareholders' equity $    196,846 $   188,794  $    192,214
                                     ------------ -----------  ------------
Noncontrolling interest (2)          $        991 $     1,280  $        964
                                     ------------ -----------  ------------
Total shareholders' equity           $    197,837 $   190,074  $    193,178
                                     ------------ -----------  ------------
Total liabilities and shareholders'
 equity                              $    232,152 $   221,049  $    226,399
                                     ============ ===========  ============


1   Effective January 1, 2009, the Company adopted SFAS 160. SFAS 160,
which was retrospectively applied, requires non-controlling interests to be
separately presented as a component of stockholdersï¿½ equity on the
unaudited condensed consolidated financial statements.

2   June 30, 2008 balances were extracted from the form 6-K for the
quarters ended June 30, 2008, as adjusted resulting from the adoption of
Statement of Financial Accounting Standards No. 160.

Contact:


 
CONTACTS:
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
ir@techfaith.cn
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
cntf@globalirpartners.com

[Press Release] TechFaith Schedules Second Quarter 2009 Financial Results Conference Call

22 Jul 2009 12:00:00 GMT

BEIJING--(Marketwire - 07/22/09) - China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith" or the "Company"), a China-based original developed product (ODP) provider focused on the original design and development of handsets and sales of finished products, today announced that it will hold a conference call to discuss the Company's financial results for the second quarter ended June 30, 2009 and business outlook.

The dial-in number for the live audio call, which will begin on Monday, August 17, 2009 at 7:00 p.m. U.S. Eastern Time (7:00 a.m. August 18, 2009 in Beijing), is +1-617-213-8834. The conference call passcode is 95340243. A live webcast of the conference call will also be available on TechFaith's website at www.techfaithwireless.com.

About TechFaith

TechFaith (NASDAQ:CNTF - News) is a China-based original developed product provider focused on the original design and development of handsets and sales of finished products. TechFaith is also striving to build a leading PC and online gaming business through its wholly-owned subsidiary, One Net Entertainment Limited. One Net Entertainment is leveraging an integrated model that combines self-developed as well as co-developed and licensed content. TechFaith employs approximately 400 professionals, of whom approximately 90% are engineers.

ï¿½
--  TechFaith engages in the development and production of middle to high
    end handsets and tailor made handsets.  TechFaith's original developed
    products include: (1) multimedia phones and dual mode dual card handsets of
    multiple wireless technology combination such as GSM/GSM, GSM/CDMA,
    GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and
    Pocket PC phones; and (3) handsets with interactive online gaming and
    professional game terminals with phone functionality.

--  With the capability of developing Middleware Application MMI/UI
    software on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and
    3.5G(HSDPA) communication technologies, TechFaith is able to provide
    Middleware Application MMI/UI software packages that fulfill the
    specifications of handset brand owners and carriers in the global market.
    For more information, please visit www.techfaithwireless.com.

--  TechFaith is targeting both the mobile and online PC gaming markets
    through its websites www.798uu.com and www.798game.com, respectively.
    Three massive multiplayer online role-playing games (MMORPGs) are planned
    to launch in 2009 for online PC users on www.798game.com.  16 titles are
    planned to launch for mobile gamers on the company's Chinese mobile games
    website www.798uu.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident," "outlook" and similar statements. Among other things, the business outlook and strategic and operational plans of TechFaith contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. TechFaith does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Contact:


 
CONTACTS:
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
ir@techfaith.cn
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
cntf@globalirpartners.com

[Press Release] TechFaith Launches Dual-GSM SIM Card Mobile Phone

14 Jul 2009 12:00:00 GMT

China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith"), a China-based original developed product (ODP) provider focused on the original design and development of handsets and sales of finished products, today announced the launch of the G6, the mobile phone for sporty games. G6 is expected to ship into Asia during the third quarter, with a further global rollout planned.

G6 was designed to serve as a feature-rich mobile phone, and both an equally strong mobile gaming platform and as a remote control for PC gaming, with advanced motion sensors. Customers will initially be able to play table tennis, tennis, bowling, golf, car racing, and other sporting games. The G6 also features dual-GSM SIM card standby functionality in a small and easy-to-carry design factor.

Defu Dong, Chairman and CEO of TechFaith, said, "The G6 is a fantastic mobile phone with unique and powerful functionality as a remote control for PC games with advanced motion sensors. Compared to other remote motion sensor game controllers, the G6 is much easier to carry, has higher functionality and lower cost, and serves as a feature-rich mobile phone. We are encouraged by initial market feedback and orders. We expect to leverage the new G6 platform into other new designs, offering mobile phone functionality along with other value-added functionality sought by our target customers."

About TechFaith

TechFaith (NASDAQ:CNTF - News) is a China-based original developed product provider focused on the original design and development of handsets and sales of finished products. TechFaith is also striving to build a leading PC and online gaming business through its wholly-owned subsidiary, One Net Entertainment Limited. One Net Entertainment is leveraging an integrated model that combines self-developed as well as co-developed and licensed content. TechFaith employs approximately 400 professionals, of whom approximately 90% are engineers.

ï¿½
--  TechFaith engages in the development and production of middle to high
    end handsets and tailor made handsets.  TechFaith's original developed
    products include: (1) multimedia phones and dual mode dual card handsets of
    multiple wireless technology combination such as GSM/GSM, GSM/CDMA,
    GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and
    Pocket PC phones; and (3) handsets with interactive online gaming and
    professional game terminals with phone functionality.

--  With the capability of developing Middleware Application MMI/UI software
    on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and
    3.5G(HSDPA) communication technologies, TechFaith is able to provide
    Middleware Application MMI/UI software packages that fulfill the
    specifications of handset brand owners and carriers in the global market.
    For more information, please visit www.techfaithwireless.com

--  TechFaith is targeting both the mobile and online PC gaming markets
    through its websites www.798uu.com and www.798game.com, respectively.
    Three massive multiplayer online role-playing games (MMORPGs) are planned
    to launch in 2009 for online PC users on www.798game.com.  16 titles are
    planned to launch for mobile gamers on the company's Chinese mobile games
    website www.798uu.com

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates, "future," "intends," "plans," "believes," "estimates," "confident," "outlook" and similar statements. Among other things, the business outlook and strategic and operational plans of TechFaith contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. TechFaith does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Contact:


 
CONTACTS:
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel: 86-10-5822-8390
ir@techfaith.cn
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
cntf@globalirpartners.com

[Press Release] TechFaith Files Its Annual Report on Form 20-F With the SEC

26 Jun 2009 19:09:00 GMT

China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF - News) ("TechFaith"), a China-based original developed product provider focused on the original design and development of handsets and sales of finished products, has filed its annual report on Form 20-F for the year ended December 31, 2008 with the U.S. Securities and Exchange Commission and has posted this document on its investor relations website at http://ir.techfaithwirel.... TechFaith will provide a hard copy of its annual report on Form 20-F for the year ended December 31, 2008, which contains its audited financial statements, free of charge to its shareholders and ADS holders upon request. Requests should be directed to Investor Relations, China Techfaith Wireless Communication Technology Limited, Building 1, No. 13, YongChang North Road, Beijing Economic-Technological Development Area (Yi Zhuang), Beijing 100176, People's Republic of China (Attention: Jay Ji), or by email to ir@techfaith.cn.

About TechFaith

TechFaith (NASDAQ:CNTF - News) is a China-based original developed product provider focused on the original design and development of handsets and sales of finished products. TechFaith is also striving to build a leading PC and online gaming business through its wholly-owned subsidiary, One Net Entertainment Limited. One Net Entertainment is leveraging an integrated model that combines self-developed as well as co-developed and licensed content. TechFaith employs approximately 400 professionals, of whom approximately 90% are engineers.

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--  TechFaith engages in the development and production of middle to high
    end handsets and tailor made handsets.  TechFaith's original developed
    products include: (1) multimedia phones and dual mode dual card handsets of
    multiple wireless technology combination such as GSM/GSM, GSM/CDMA,
    GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and
    Pocket PC phones; and (3) handsets with interactive online gaming and
    professional game terminals with phone functionality.

--  With the capability of developing Middleware Application MMI/UI software
    on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and
    3.5G(HSDPA) communication technologies, TechFaith is able to provide
    Middleware Application MMI/UI software packages that fulfill the
    specifications of handset brand owners and carriers in the global market.
    For more information, please visit www.techfaithwireless.com.

--  TechFaith is targeting both the mobile and online PC gaming markets
    through its websites www.798uu.com and www.798game.com, respectively.
    Three massive multiplayer online role-playing games (MMORPGs) are planned
    to launch in 2009 for online PC users on www.798game.com.  16 titles are
    planned to launch for mobile gamers on the company's Chinese mobile games
    website www.798uu.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates, "future," "intends," "plans," "believes," "estimates," "confident," "outlook" and similar statements. Among other things, the business outlook and strategic and operational plans of TechFaith contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. TechFaith does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Contact:


 
Contacts for investor and media inquiries:
In China:
Jay Ji
China Techfaith Wireless Communication Technology Limited
Tel:+ 86-10-5822-8390
Email: ir@techfaith.cn
In the U.S.:
David Pasquale
Global IR Partners
Tel: +1 914-337-8801
Email: cntf@globalirpartners.com

[Press Release] TechFaith Launches HSUPA Data Modem Card Into U.S. Market

02 Jun 2009 06:00:00 GMT

BEIJING--(MARKET WIRE)--Jun 2, 2009 -- China Techfaith Wireless Communication Technology Limited (NasdaqGM:CNTF - News) ("TechFaith") today announced the launch of its HSUPA data modem card into the U.S. market, with availability in the second half of June. The data card will be sold through one of the major U.S. wireless network operators.

Beijing-based TechFaith is an original developed product provider focused on research and development of cell phone solutions. Over the past five years, TechFaith has forged strategic relationships with top U.S.-based design, semiconductor, software, telecommunications and distribution companies.

Defu Dong, Chairman and CEO of TechFaith, said, "We continue to build off our foundation in the U.S. This is an important market for TechFaith for technology, distribution and network operator relationships. Given the large size and the sophisticated nature of the U.S. market and its demand for high value and performance, we are looking forward to further expanding our product offerings available in the U.S."

About TechFaith

TechFaith (NasdaqGM:CNTF - News) is an original developed product provider focused on research and development of cellphone solutions. Based in China, TechFaith employs approximately 400 professionals, of whom approximately 90% are engineers. TechFaith engages in the development and production of middle to high end handsets and tailor made handsets. TechFaith's original developed products include: (1) multimedia phones and dual mode dual card handsets of multiple wireless technology combination such as GSM/GSM, GSM/CDMA, GSM/WCDMA, GSM/TD-SCDMA and UMTS/CDMA; (2) Windows-based smartphones and Pocket PC phones; and (3) handsets with interactive online gaming and professional game terminals with phone functionality.

With the capability of developing Middleware Application MMI/UI software on 2G/2.5G(GSM/GPRS, CDMA1X), 3G(EV-DO, WCDMA/UMTS, TD-SCDMA) and 3.5G(HSDPA) communication technologies, TechFaith is able to provide Middleware Application MMI/UI software packages that fulfill the specifications of handset brand owners and carriers in the global market. For more information, please visit www.techfaithwireless.com

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates, "future," "intends," "plans," "believes," "estimates," "confident," "outlook" and similar statements. Among other things, the business outlook and strategic and operational plans of TechFaith contain forward-looking statements. TechFaith may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about TechFaith's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in TechFaith's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. TechFaith does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Contact:

     CONTACTS:
      
     In China:
     Jay Ji
     China Techfaith Wireless Communication Technology Limited
     Tel: 86-10-5822-8390
     ir@techfaith.cn
      
     In the U.S.:
     David Pasquale
     Global IR Partners
     Tel: +1 914-337-8801
     cntf@globalirpartners.com