HTC misses revenue forecasts, Q2 profits cut by over half

HTC misses revenue forecasts, Q2 profits cut by over half

Summary: HTC has issued net profit results likely to set an investor's teeth on edge following a dismal first quarter.

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TOPICS: Tech Industry
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HTC has issued net profit results likely to set an investor's teeth on edge following a dismal Q1.

Today, the Taiwanese smartphone developer's second quarter statement has been released. For the period between April and June, total unaudited revenues reached NT$91.0 billion ($3.04 billion).

In operating income, HTC reported NT$8.2 billion ($275 million), and NT$7.4 billion ($247.7 million) in net profit. 

Net profit is the most important facet of the statement in relation to the company's potetial long-term future, and this quarter has revealed the drop from $585.95 million from Q2 in 2011, which is a reduction of over 57 percent year-on-year. 

The slashed profit margins have been blamed on European sales that fell shorter than expected. It may also be the case that as U.S. customs delayed some HTC smartphone arrivals due to a patent infringement claim -- including Sprint's HTC Evo 4G LTE and AT&T's HTC One X -- an opportunity to claw back some of its expected net profit result was lost.

A month ago, the smartphone developer issued a warning that its guidance documents for the unveiling of its Q2 results were wrong -- dropping the older estimate of NT$93.6bn in revenue ($3.13bn), a gross margin of 29 percent and an operating margin of 11.2 percent -- and fixing them at a revenue of NT$91bn ($3.04bn), 27 percent as a gross margin, and an operating margin of 9 percent. 


Topic: Tech Industry

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