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HTC continues recovery and has cautiously good outlook

News by Luke Jones on Friday October 31, 2014.

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HTC continued its road to recovery through the third quarter, but the according to the company?s latest financials it is a long road ahead. The Taiwanese giant has now recorded two profitable quarters in a row, following a string of losses for the 18 months previously. This time though the profits prove that the coming two or three quarters will really be the ones to judge where HTC is in the grand scheme of things.

You may remember that last time out the company posted profits of $92 million, a big turnaround after the company has been on a disastrous losing streak. This time the profit is more modest as for the third quarter HTC raked in $19 million, keeping it in the black. How you view this profit will depend on whether you are a glass half full or glass half empty kind of person.

One the one hand profit is profit, a $19 million increase is better than the loss the company made through the same period last year, and HTC was even cautious about profits this quarter. However, on the other hand the declining profit from $92 to $19 million could show that sales are slowing again. The One M8 continues to drive the company, but it could be running out of steam, or could that decrease in profit come down to other factors?

Certainly HTC is still struggling in the US, a key mature market that for some reason seems to ignore the frankly excellent devices HTC makes. Let?s be honest, pound for pound HTC makes better handsets (a combination of design and specs) than just about every company out there. However, sales of mid-range and budget devices remain low, despite a slew of very good smartphone at those price points arriving recently. Perhaps they need time to catch fire, as do new device such as the Desire 820 and Desire EYE, but once again HTC will be fascinating when the next quarter financials are released.


3Q Financial Highlights

Revenue: NT$41.9 billion

Gross margin and operating margin: 22.9% and 0.4%, respectively

Net profit after tax: NT$0.6 billion, or NT$0.78 per share

Business Overview

HTC One (M8) momentum continued despite stiff competition

Desire 610 and 510 experienced good demand, selling well in both the US and Europe

Desire 816 maintained solid sales throughout Taiwan, China, India and the Middle East

Desire 820, the world?s first 64-bit octa-core smartphone, was launched in China and received wide distribution support from the major operators


Revenue is expected to be in the range of NT$43 billion to NT$47 billion

Gross profit margin is expected to be 19% to 21%

EPS is expected to be in the range of NT$0.07 to NT$0.46

Product Innovation:

Double Exposure launch introduced:

HTC Eye Experience, a powerful suite of imaging features that allows users to better put themselves in the picture, including advanced face tracking enhances the quality of video chat and conference calls, and an array of tools that enable users to combine, merge or crop images in creative new ways.

HTC Desire Eye, encapsulates this imaging focus, integrating all of the HTC Eye Experience features with market

leading 13 megapixel cameras and intelligent dual

LED flash at both front and back for superb photography and the ultimate selfies.

Zoe, a collaborative, social video

editing application, allows users to create and remix videos into highlight reels comprising a couple of still images or entire series of video clips, complete with soundtracks and themes, that can be easily

shared on social media.

RE, a remarkable camera that conveys HTC?s vision of expanding the mobile ecosystem beyond the smartphone.

Nexus 9, the new premium tablet designed in close collaboration with Google that boasts an array of advanced technologies.

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About the author

Luke Jones
Luke Jones is the Managing Editor at MobileBurn.com and is the person you need to speak to about the content on the site. Luke studied creative writing at degree level before carving out a reputation as a freelance tech writer. He settled here at MobileBurn, where he reviews devices and contributes to the news, as well as overseeing the site's content and direction.

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