HTC could be back on its feet, projects Q2 profit after strong One M8 opening

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06 May 2014 , 18:03

Taiwanese smartphone maker HTC said on Tuesday it projects revenue in April-June to almost match that of a year earlier thanks primarily to sales of new flagship One M8 beating those of its predecessor.

Revenue is likely to be in a range of T$65 billion ($2.16 billion) to T$70 billion, compared with T$70.67 billion in the same period a year prior, Chief Financial Officer Chialin Chang said at a quarterly investor conference. The CFO said, “In 2014, we intend to sell more units of the M8 than the M7, which was already the best-selling model in HTC history.”

Chang said the manufacturer expects a second-quarter gross profit margin of 21.3 percent to 22 percent, and earnings-per-share of T$2.21 to T$3. The first quarter finished in March with HTC ending 28 months of on-year sales declines. HTC logged another sales rise in April indicating strong shipments of the M8, which was released in late March around a year after the M7.

HTC is likely to break even or book a profit in the first half, Chang said, after reporting a loss in January-March that was wider than analysts estimated at T$1.88 billion.

Shares of HTC closed up 3.6 percent ahead of the briefing, reaching a nine-month high on expectations of a strong revenue forecast. The benchmark Taiwan SE Weighted Index ended up 0.5 percent.

HTC’s future is not as dependent on its flagship model in advanced markets as it once was, as sales of lower-priced models in emerging economies are growing at an increasing rate. The high-end market is slowing from its peak of just a few years ago when HTC, as a relative unknown, pitted itself against established consumer technology companies such as Apple.

Reuters


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