HTC Posts Q3 Profit Despite Sales Decline - Twice

HTC Posts Q3 Profit Despite Sales Decline

Maintains net profit for second consecutive quarter
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Taoyuan, Taiwan – HTC’s third-quarter revenues fell 12 percent to NT$41.9 billion ($1.38 billion) compared to a year ago, but the company maintained a net profit for the second consecutive quarter.

Quarterly net profit after taxes hit NT$0.6 billion ($19.7 million), or NT$0.78 per share, compared to a year-ago net loss of NT$3 billion ($98.5 million). Net profit was nonetheless down considerably from the second quarter’s NT$2.3 billion, which reversed a first-quarter net loss of NT$1.88 billion.

For the fourth quarter, HTC forecasts revenues of NT$43 billion to NT$47 billion, a gross profit margin of 19 to 21 percent, and a sequential decline in EPS to NT$0.07 to NT$0.46.

"This challenging quarter saw HTC step up to the plate, maintaining profitability in the face of an intensely competitive environment," said CEO Peter Chou. “By providing balanced product offerings across all major regions and increasing the buzz around the brand, our partners have been reach into established and emerging markets, especially with the Desire range."
The Desire line “turned in a strong performance across the board in Q3'14, consolidating market share and attracting new users,” he said. “The Desire 610 and 510 experienced good demand, selling well in both the U.S. and Europe.”

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.

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