HTC's Q2 barely beats estimates, profit climbs to $75 million

HTC's Q2 barely beats estimates, profit climbs to $75 million

Summary: HTC managed to dig itself out of a three-quarter streak of operating losses, with its net profit increasing 80 percent from the same quarter a year ago.

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TOPICS: HTC, Mobility
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The 5-inch HTC One M8. Image: HTC.

Taiwanese smartphone maker HTC reported its fiscal second quarter earnings Thursday with results slightly beating expectations.

HTC reported a net profit of US $75.6 million ($2.26 billion New Taiwan dollars), an 80 percent increase from the same quarter a year ago, and ahead of the NT$2.09 billion analysts anticipated.

HTC also managed to dig itself out of a three-quarter streak of operating losses, with the current quarter posting an operating profit of NT$2.43 billion. Revenue however was down from the same time last year, coming in at NT$65.06 billion and barely meeting HTC's guidance range of between NT$65 billion and NT$70 billion.

Hopes of a financial turnaround for the smartphone maker hung heavily on the company's new flagship handset for 2014, the HTC One M8, which rolled out in March. HTC's CFO Chang Chialin told investors during a conference call in May that earnings would return to profit for the June quarter, as sales of the M8 continued climbing.

HTC chief executive Peter Chou said during that same May conference call that the company was witnessing a "positive customer response" to the new flagship phone: "We have dramatically improved our operational efficiency and supply chain readiness to ensure immediate availability on the launch day."

The device seems to have buoyed the quarter somewhat, but the company still struggles to compete with rivals Samsung and Apple – both of which are expected to release next-generation smartphones later this year.

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Topics: HTC, Mobility

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2 comments
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  • I'm very pleased with my HTC One M7

    So much so I see no reason to buy the M8. Though the increased battery life of the M8 is appealing.
    ye
  • I switched

    While I've been super surprised at how well my M7 has lived through many-a-drop, it finally met its demise last week. I had a 'Jump' upgrade from T-Mobile, so I decided to consolidate my insurance claim and my upgrade. I liked the availability of the MicroSD card in the M8, but preferred the availability of the removable battery in the Note 3, with the stylus being an added bonus. The existence of the removable battery isn't necessarily the great part, but the availability of the ZeroLemon batteries for it have been utterly amazing in my Note 2.

    What I think would really help HTC would be for them to release a modern-spec'd Android handset with the form factor of the Touch Pro2 (complete with stylus). Now, the peanut gallery will say "no one wants those anymore! Swiftkey has solved that problem!", and be half-right. Counterpoints:
    1.) The Touch Pro2 was about the same LxW as the One M7, which may make it a hit with people who want a stylus on their phone, but not a super-sized Note 3.
    2.) No one useful has made a hardware keyboard in some time. Blackberry? ...because anyone is going to jump ship from either iOS or Android, with their established app and media ecosystems (everyone seems to focus on apps and forget music, movies, and TV shows, both just as easily available, but that Blackberry barely had except Pandora). The HTC G2? Never got an official ICS/JB/KK upgrade; it's a 2-year-old handset. Motorola was selling the Droid 2/3/4 for some time and they had a pretty good following, but with that company being a hot potato and never actually doing something smart like releasing a Nexus phone while Google owned them, it's unsurprising that the upgrade cycle for those came and went, and there are still holdouts.
    3.) There are at least a handful of murmurs around the internet still asking for a hardware keyboard. I'm extremely skeptical of someone telling me that there is more market demand for a camera with multiple lenses for post-image focusing. HTC clearly isn't afraid of catering to a niche if that's going to be the feature on which they bet the farm.
    4.) Everyone else seems to have covered the 'anorexic touch-screen slab' phone; it'd at least be a way for HTC to look a bit unique.

    But hey, that's just me...

    Joey
    voyager529