UPDATE 1-China TechFaith posts quarterly profit; beats market

(Recasts; adds details, share movement)

Feb 25 (Reuters) - China TechFaith Wireless Communication Technology Ltd (CNTF.O) posted a quarterly profit above analysts' expectations and forecast better-than-expected first-quarter revenue, sending shares up about 11 percent in after-hours trade.

The mobile phone software developer said the quarterly profit was helped by a strong performance of its original developed product (ODP) business.

TechFaith said it plans to develop mobile Internet devices with phone functions based on Windows XP and work actively with Google to develop a Google phone based on an Android operation system.

The company said demand for middle to high-end and tailor made handsets from China and the international market continues to be robust and forecast first-quarter revenue of $48 million to $49 million.

Analysts were looking for revenue of $42.9 million, according to Reuters Estimates.

The company also said an internal probe has identified certain internal control deficiencies including material weaknesses and has set deadlines for remedial measures.

The Beijing-based company posted a net profit of $3.2 million, or 7 cents per American Depository Share, compared with a loss of $6.7 million, or 15 cents per ADS.

Net revenue rose 56.7 percent to $45.7 million.

Analysts had expected the company to earn 4 cents a share, excluding special items, on revenue of $43.3 million. Shares of the company rose 62 cents to $5.85 in trading after the bell, after closing at $5.23 Monday on the Nasdaq. (Reporting by Supantha Mukherjee in Bangalore; Editing by Gopakumar Warrier)