HTC money

Profits fall 83 percent year-on-year in second quarter

HTC has announced its unaudited financial results for the second quarter of 2013, with total revenue reaching NT$70.7 billion ($2.35 billion). The Taiwanese manufacturer reported unaudited operating income of NT$1.05 billion ($35 million), net income before tax of NT$1.52 billion ($51 million) and net income after tax of NT$1.25 billion ($42 million). Unaudited earnings per share were reported at NT$1.50 ($0.05).

The numbers show that HTC met its own forecast of NT$70 billion in revenues, however Reuters reports that profits fell short of analysts' expectations of NT$2.02 billion. What's more, it's an 83 percent fall in profits for HTC compared to the same quarter last year. The monthly breakdown shows that HTC's revenues fell almost 24 percent to NT$22bn in June, after having risen to NT$29bn in May. The lower June numbers could represent a cool-off in the hype and publicity surrounding the HTC One, which launched in March in parts of Europe, and late April in the U.S. In addition, rival Samsung's new flagship handset the Galaxy S4 has been heavily promoted during this time.

Nevertheless, the numbers do shown a turnaround from the disastrous figures posted in Q1, which saw the company barely breaking even after posting its worst ever financial results. New products on the horizon for HTC include the Butterfly S for Asia, as well as the rumored One Mini and One Max, new variants of its flagship HTC One device. The manufacturer will be hoping that a fresh summer product line will help it maintain momentum in the third quarter.

Source: HTC, Reuters