HTC records profits for third quarter in succession

It wasn’t long ago that HTC was reporting successive losses each quarter but the company’s switch to producing more high-quality low-end handsets seems to have paid off with the reporting of their third successive profitable quarter. The comeback started last year and their latest quarter showed increased profits as a result of a growth despite predictions of declines throughout 2014.

Revenue during the quarter grew 12 percent year-on-year to a total of NT$47.9 billion ($1.524 billion( in the fourth quarter but whether the rise is due to increased handset sales or higher margins is uncertain. The back-end of last year saw interest in HTC’s lower-end smartphones increase by a significant amount and it’s likely that the additional unit sales at the lower-end of the pricing scale contributed a large degree towards to the revenues.

Alongside the increased revenues, the company reported a quarterly net profit of NT$0.5 billion after tax (which equates to NT$0.57 per share) with a gross margin of 20.4% and an operating margin of 0.4%.

Peter Chou, CEO of HTC, said:

“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.”

Looking ahead to this quarter, HTC is predicting revenue to be lower in the range of NT$41.5 billion to NT$45 billion. This is going to come with an almost stagnant gross profit margin between 19.5% and 20% alongside an earnings per share (EPS) in the range of NT$0.08 to NT$0.47.

Overall this quarter could be quiet for HTC but much will depend on its announcements at MWC; scheduled for March 1st, the day before the Congress officially opens, the “Utopia In Progress” event is expected to be the launch of the long-awaited HTC One M9, which could feature two 20 MP rear cameras as HTC ups the camera stakes.

Source: HTC