HTC manages profitable second quarter

Struggling smartphone manufacturer remains just-about profitable as sales grow

Tags: HTC Corporation
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HTC manages profitable second quarter HTC said that its return to profitability had been driven by strong sales of its flagship One M8 device
By  Tom Paye Published  August 4, 2014

HTC today reported that it was just about hovering above the profitability line, having recorded a quarterly net profit of NT$2.3bn ($0.08bn) for the second quarter of 2014.

That number was off a quarterly revenue of NT$65.1bn ($2.16bn) total revenue, with an operating margin of 3.7%. The Taiwanese handset maker's gross margin was 22.2%, it said in a statement.

HTC said that its return to profitability had been driven by strong sales of its flagship One M8 device around the world. The firm's HTC One Mini 2 and Desire 816 products had also experienced significant gains, HTC added.

"As is demonstrated by this quarter's results, we have continued to improve all aspects of our business, while building on the incredible excitement around our current line of products," said Peter Chou, CEO of HTC.  

"This profitable quarter is a positive step that is the result of having focused on delivering the best possible smartphone to the world, in the HTC One M8 and expanding our offerings with the HTC One Mini 2 and our Desire line."

HTC said that both the One M8 and Desire 816 had dominated in its home market of Taiwan. This meant that, for the first time, HTC was ranked as number-one in terms of unit share and value share in Taiwan. The company also reported sound sales momentum in China and India.

Despite often garnering strong reviews for its products, HTC has struggled to survive in the tough smartphone business thanks to competition from Samsung and Apple. At its strongest point in 2011, when it owned 2.7% of the mobile device market, HTC reported revenue of $15.51bn. By 2013, that number had decreased to $6.77bn.

In its outlook for the third quarter of 2014, HTC predicted that revenue will be in the range of NT$42bn to NT$47bn, and that gross profit margin would be 22.5% to 23%.

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