Huawei 2010 profits rise 30%; reveals board members

Huawei is riding a wave of growth with a 24 percent rise in revenue and a 30 percent increase in 2010 net profit. And, in an effort to counter criticism by the U.S. government that it lacks openness, Huawei finally revealed the identity of its board of directors, which includes founder and CEO Ren Zhengfei, in its 2010 annual report.

The vendor reported a 30 percent rise in 2010 net profit to 23.8 billion yuan ($3.64 billion), up from 18.3 billion yuan in 2009. Likewise, Huawei's net profit rose to $3.64 billion in 2010, up from $2.8 billion in 2009.

Huawei said the growth in 2010 was the result of higher overseas sales and growth in its core telecom networks, global services and device units.  

Still, the one piece that's missing from Huawei's growth engine is a Tier 1 U.S. service provider.

"What's still missing for Huawei is the U.S.," Duncan Clark, the chairman of BDA China, a Beijing-based technology consultancy, told Bloomberg. "It's pretty impressive the company can almost become a global leader without the U.S. market. Huawei is in the top tier now and with free access to the U.S., it would become very much the top dog."

As reported in FierceTelecom's sister publication FierceWireless, Huawei was dealt a major blow when Sprint (NYSE: S) awarded its rivals Alcatel-Lucent (NYSE: ALU), Ericsson and Samsung a major wireless network modernization contract.

While the Sprint contract is a major loss, Huawei has seen similar troubles on the wireline side. Not only did it have to drop its acquisition of patents from cloud server vendor 3Leaf Systems, but also 3Com Corp. in 2008 and 2Wire Inc. in 2010 due to due to national security concerns.

To counter allegations made by U.S. lawmakers that Huawei has ties to the Chinese Army, Huawei offered the U.S. government to conduct a security investigation on the company in February.

For more:
- see the release
- Reuters has this article
- Bloomberg has this article
- and this article

Related articles:
Huawei keeps its acquisition options open
Dell'Oro: Huawei, Alcatel-Lucent and Arris led Q4 broadband equipment sales
Huawei reports strong 2009 profit increase
Huawei's U.S. expansion ambitions face government security obstacles

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