CommScope's annual and Q1 reports reveal dual disclosure: Wi-Fi 7 drives high growth, total victory in 337 litigation ushers in earnings turning point

On the evening of April 27, Konsemi Communication (688653.SH) released its 2025 annual report, achieving revenue of 683 million yuan, a year-on-year increase of 30.71%, and a net loss attributable to shareholders of 43.63 million yuan, which narrowed by 32.5 million yuan compared to the same period last year.

On the same day, Konsemi Communication disclosed its Q1 2026 report, achieving revenue of 182 million yuan during the reporting period, a year-on-year increase of 34.80%, and net profit attributable to shareholders of 4.875 million yuan, reversing losses from the previous year to profitability.

Benefiting from the volume production of Wi-Fi 7 products, Konsemi Communication's revenue has steadily grown, with its IoT business experiencing explosive growth of over seven times. At the same time, after nearly two years, the overseas patent litigation ended with a complete withdrawal of charges by the opposing party, clearing all obstacles for the company’s internationalization. The company successfully turned losses into profits in Q1 2026, with performance officially on an upward trajectory. In the future, the company will rely on dual drivers of technological innovation and market expansion, accelerating its layout in new sectors such as low-altitude economy and industrial IoT while comprehensively advancing global expansion.

Wi-Fi 7 Becomes Growth Engine, IoT Business Achieves Explosive Growth as Second Growth Curve

Konsemi Communication is a professional RF front-end chip design enterprise that operates under the Fabless model, mainly engaged in the research, design, and sales of Wi-Fi RF front-end chips and modules. As key components of wireless communication equipment, RF front-end chips have ushered in new growth opportunities amid the full commercialization of the Wi-Fi 7 protocol.

Thanks to its deep technical expertise in Wi-Fi FEM, Comtech Communication's Wi-Fi 7 series performed strongly in 2025, accounting for more than 50% of total revenue, driving a year-on-year increase of 26.95% in Wi-Fi FEM product revenue to 638 million yuan, and raising the overall gross margin of the company's core business by 2.17 percentage points to 23.94%, returning to normal annual levels.

During the reporting period, multiple Wi-Fi FEM products from the company received technical certifications from internationally renowned Wi-Fi main chip manufacturers including Broadcom, Qualcomm, MediaTek, and Realtek, and were included in their reference designs. The company continues to deepen strategic cooperation with mainstream international SoC vendors. Its latest ultra-high-efficiency RF front-end chipset received recognition from a leading global SoC vendor, strengthening the company’s competitive edge in the global market.

Comtech Communication's high revenue growth also benefited from actively expanding into new product lines such as pan-IoT, yielding significant results and diversifying the company’s income sources. According to financial reports, in 2025, the company's IoT FEM products generated revenue of 37.81 million yuan, representing a substantial year-on-year increase of 759.78%.

The low-altitude economy is a key area in Comtech Communication’s pan-IoT product line. The ultra-efficient, high-power RF front-end chip for drones launched for the low-altitude economy sector, based on R&D samples delivered in 2024, progressed smoothly in 2025 with strong market demand. The company has secured major clients and received bulk orders, providing robust support for its operating performance and becoming a new growth driver.

According to CCID Consulting data, the domestic low-altitude economy market size is expected to exceed 850 billion yuan in 2025 and is projected to reach the trillion-yuan level in 2026. The compound annual growth rate of the drone-specific RF chip market is 20%-30%, indicating significant demand potential. On the policy front, the low-altitude economy has become one of the country’s emerging pillar industries, with standards issued jointly by ten departments and supporting local policies continuously implemented to foster industry development.

Leveraging its technological advantages, leading client resources, and the trend of domestic substitution, Comtech Communication’s products are poised for continued growth, allowing the company to fully capitalize on sector opportunities and inject strong momentum into long-term growth.

The company's IoT product line also covers two other key areas. In the industrial IoT field, the company's industrial IoT products have been successfully integrated into the Wi-Fi Halow platform, co-developing the Wi-SUN protocol with customers to provide stable communication for long-distance intelligent control. Bulk shipments were achieved in 2025. In the cellular RF front-end domain, the company began R&D on cellular RF front-end products (such as Cat.1) this year, which are currently in the customer sampling and validation stage, with potential to generate revenue in the future.

Complete victory in overseas patent litigation, Q1 performance sees upward inflection point

With the continuous expansion of overseas markets, Comba Communication's wholly-owned R&D subsidiary faced patent litigation and a 337 investigation initiated by Skyworks, the global leader in the RF front-end industry, starting in the first half of 2024. In 2025, the company actively responded by coordinating professional legal teams both domestically and internationally to fully defend against the claims and protect its rights.

Thanks to its professional and efficient response, the company achieved an initial ruling victory in January 2026. On April 24 (Eastern Time), the company learned that the ITC administrative judge decided to terminate the investigation of Inv. No. 337-TA-1413 based on a settlement agreement. Thus far, Skyworks has unconditionally withdrawn the 337 investigation and the patent litigation at the U.S. District Court for the Central District of California, fully concluding all matters related to this 337 investigation and patent litigation.

Public information shows that the 337 investigation, a trade protection measure originating from the U.S. Tariff Act of 1930, has long been a 'stumbling block' for many Chinese companies going global. In this dispute, Comba Communication consistently believed in the innovation of its products and the legitimacy of its independent intellectual property rights, ultimately winning this critical 337 investigation, showcasing the resilience and responsibility of Chinese high-tech enterprises.

With the complete conclusion of the 337 investigation and patent litigation, the clarification of U.S. market access will facilitate the company's more aggressive push of its products into the global market; it will also allow the company to directly compete with international giants in the U.S. market. This brings direct market opportunities to the company while significantly enhancing brand influence and customer trust.

This victory is not only a triumph for Comba Communication but also a highlight moment for China’s RF front-end chip industry on the global stage, marking an important breakthrough in global intellectual property protection for the sector. It demonstrates to the world that Chinese companies are capable of defending their independent innovations in high-tech fields and can engage in multidimensional competition with international giants on the global stage.

During the handling of the above patent litigation, Comba Communication incurred substantial legal fees and expert fees, compounded by factors like high R&D investment, resulting in a strategic loss in 2025. However, with the conclusion of the patent litigation and continued high revenue growth, the company's Q1 2026 performance has already seen an upward inflection point.

In Q1 2026, Comba Communication reported revenue of 182 million yuan, a year-on-year increase of 34.8%; net profit attributable to shareholders was 4.875 million yuan, reversing losses year-on-year and reversing the 2025 deficit. The earnings report noted that revenue growth was mainly due to a more than 50% year-on-year increase in Wi-Fi 7 product sales, while the reversal of losses was primarily driven by revenue growth and a significant year-on-year decrease in litigation costs.

Comba Communication stated that in 2026, the company will continue to adhere to the dual-driven strategy of 'technological innovation + industrial layout.' Building on strengthening and deepening the competitive advantage of its network Wi-Fi products, the company will accelerate the R&D and commercialization of new product lines, simultaneously promoting domestic and international market expansion, creating multiple growth curves, and fully empowering new developments in the smart IoT industry.

The company will take the full conclusion of the 337 investigation and patent litigation as an opportunity to actively go global and participate in international market competition, pushing existing Wi-Fi 7, pre-researched Wi-Fi 8, and new technology products such as drones and smart metering into the global market. This will enhance profitability, increase the proportion of overseas market revenue, and strive to achieve simultaneous growth in operating scale and profitability.

Disclaimer: This article is for reference only and does not constitute investment advice.

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