HTC Q4 2014: Targeted portfolio leads to third consecutive quarter of profitability
HTC reported its fourth quarter and year end results (PDF), confirming profitability for the third consecutive quarter.
These three profitable quarters follow three quarters of operating losses and with a major announcement in three weeks HTC may continue this trend of profitability.
Tech Earnings
HTC on Friday reported NT$500m (US$15.9m) in unaudited net profit during the quarter to 31 December, reflecting earnings per share of NT$0.57.
A gross margin of 20.4 percent and operating margin of 0.4 percent were reported with unaudited revenues for the fourth quarter of NT$47.9bn (US$1.5bn).
HTC CEO Peter Chou stated:
HTC finished the year with a third consecutive quarter of profitability, and is well-positioned to build on that solid platform in the year ahead by ensuring our portfolio is highly targeted and our message clearly communicated. Key to our improved sales performance was our ability to offer tailored product mixes at suitable price points within the regions, which enabled us to closely address the needs of specific markets.
It's been nearly a year since HTC released its last flagship, the HTC One M8, but several HTC Desire phones and its RE camera were released over the last few months.
HTC will continue to expand its portfolio in 2015 and the recent partnership with Under Armour is looking to be a strong choice. Under Armour just purchased Endomondo and MyFitnessPal as it looks to be the platform of choice for mobile fitness.
HTC expects first quarter 2015 revenue in the range of NT$41.5 billion (USD$1.3bn) to NT$45 billion (US$1.43bn), gross profit margin in the range of 19.5 to 20 percent, and earnings per share in the range of NT$0.08 to NT$0.47.