AsiaInfo Rides Telecom Boom: Under the Radar

BEIJING (TheStreet) -- Telecom companies focused on the U.S. are hitting a ceiling as cell phone and Internet penetration passes 90%. AsiaInfo Holdings(ASIA Quote), on the other hand, is benefitting from the explosion of communication technology in China.

Beijing-based AsiaInfo sells software that controls spam, manages networks and helps users keep track of their clients. The company's revenue has grown 33% and earnings per share have climbed 44% annually, on average, during the past three years. Its customers include some of the biggest names in Chinese technology, including China Mobile(CHL Quote) and China Telecom(CHA Quote).

AsiaInfo's third-quarter net income surged 49% to $9.1 million and earnings per share advanced 36% to 19 cents. Revenue grew 42% to $64 million. AsiaInfo's gross margin rose from 53% to 55%, and its operating margin increased from 12% to 16%. ...