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Embattled HTC Returns To Profitability

Taipei, Taiwan — HTC returned to profitability in the second quarter and claimed its good fortunes have been “driven by the sales momentum of its HTC One (M8), HTC One Mini 2 and Desire 816 products around the world.”

The company posted an operating profit of NT$2.4 billion ($79.8 million), reversing three consecutive quarters of operating losses. Second-quarter operating profit was up 118 percent from the year-ago NT$1.1 billion. The first quarter’s operating loss was NT$2 billion.

Net profit after taxes hit NT$2.3 billion ($76.5 million), reversing a first-quarter net loss of NT$1.88 billion and rising 92 percent from the year-ago NT$1.2 billion. The company posted the first net loss in its history in the third quarter of last year and avoided a fourth-quarter net loss by selling its remaining interest in Beats Electronics.

Second-quarter revenues, however, continued to fall, slipping 7.9 percent from the year-ago period to NT$65.1 billion ($2.17 billion) but more than double the first quarter’s NT$33.1 billion. The slide was an improvement over recent quarters, which posted double-digit percentage declines in sales. In 2013, full-year revenues fell at double-digit percentage rates for the second consecutive year.

In fiscal 2013 ending December, revenues fell 29.6 percent to NT$203.4 billion, operating losses hit NT$4 billion compared to 2012’s operating profit of NT$18.8 billion, and net losses hit NT$1.33 billion compared to 2012’s net profit of NT$17.6 billion.