HTC financials

Final Q1 results underscore what unaudited figures told us, but there's a more optimistic outlook for Q2

HTC has officially announced its consolidated first-quarter financial results, and the figures confirm what we learned a month ago from its unaudited Q1 figures -- specifically, it was a dismal quarter for the Taiwanese manufacturer. The first three months of 2013 weren't kind to HTC, with the company's new flagship handset, the HTC One, arriving too late to make any difference to its Q1 income statement.

Total quarterly revenues stood at NT$42.8 billion ($1.42 billion), with a gross margin of 20.3 percent and a razor-thin operating margin of just 0.1 percent. Net profit was NT$85 million ($2.88 million). Earnings per share (EPS) were NT$0.10 ($0.003).

In today's press release, CEO Peter Chou describes this as a "pivotal quarter" for HTC, as it transitioned to its new flagship smartphone. The HTC boss goes on to list various accolades picked up by the handset since its announcement.

Looking ahead to Q2, the company expects a significant uptick off the back of the HTC One, with predicted second quarter revenues of NT$70 billion ($2.73 billion), a gross profit margin of between 22 and 24 percent, and operating margin of 1 to 3 percent. With HTC One sales just starting to get going in many countries, the manufacturer has every reason to be optimistic. But it'll also have to contend with competitor Samsung's massive launch push for its new flagship, the Galaxy S4.

Source: HTC (PDF)

 
There are 21 comments

Voliam says:

HTC better have some other products in the pipeline of they're going to survive. The One can't do it alone, despite sales.

DWR_31 says:

The One and the One half are the big and small of the mainstream HTC campaign.

Hy
Someone could tell me please if I can run an htc dev edition in italy?
Now I'm on galaxy s3 gsm/wcdma but I don't understand nothing about frequency that runs on devices. ..
Many thanks

mwara244 says:

Cross check your carrier's network and see what spectrum they have and then you can buy one from many different sites. Just make sure your carrier runs the same spectrum that the device can recieve, probably want to check the GSM versions

lan2cp says:

RIP HTC :(

Fairclough says:

Companies can last for years without profit, there are ways to fudge it even through other means which are legal. E.g In America they do LIFO accounting - while its banned in Aus to make their profit smaller and pay less tax even though they are earning more and to make profit seam larger FIFO etc.

They should do fine!

coronaboy10 says:

They'll be alright. I just dont see them falling as far as blackberry.

Lack of optimism isn't one of their problems. Their history of questionable ethics in their dealings with vendors and customers has finally caught up with them. The brand is radioactive. I give them 6 months - 8 on the outside.

rookiegenius says:

For god sake make a bloody phone with SD CARD, pack the battery with more juice, faster update then people will buy their phone. Learn from SAMSUNG (not learn their plasticky stuff tho).Simple like that. why can't they listen to customers huh??????? if they die, they deserve it.

tohio says:

Couldn't agree more. Although the plasticky stuff doesn't seem to bother the tens of millions who bought the S3.

hmmm says:

I have to believe metal costs more than plastic. They probably have to cut costs somewhere. They are choosing form over function, much like Apple does.

Superguy25 says:

I agree. I'd like to see a removable battery though and I wish they'd quit with the locked bootloader crap.

I like HTC phones - I've owned several and always take a look at them when it's time to start shopping. However, HTC's also quickly eliminated:

No SD card? Strike 1.
Nonremovable battery? Strike 2.
Locked bootloader? Strike 3.

Yes, I know HTC does the HTCDev thing, but they also yank devices from it too. HTC's encryption has been harder to bypass than Sammy's.

Bottom line: Make a phone that at least fixes the first 2 and gives a reasonable workaround for the third one and you'll have a customer.

ConTejas says:

Time to buy some HTC stock!

Fairclough says:

I'm considering it just need to find a stock trader with them.
Right now there at their recession price.

acrewdog says:

The doom and gloom about HTC is entirely misplaced. They still made a PROFIT!

How about we look at Sprint for a moment? Sprint has lost money. Billions every year for many years now! They lost $643 million in the first quarter of this year.

The idea the HTC is in danger of going out of business is ludicrous.

Nreeldeep says:

The idea of Palm being in danger going out of business was ludicrous.

Entirely different story. A carrier's assets are its network and its customer base. A handset OEM's asset is its IP - except HTC has the least of any major OEM. On average, HTC pays around $40 per phone to use other OEM's patents - the highest price paid by any handset manufacturer.

HTC has:

Almost no unique IP.
The highest IP costs of any OEM.
No clue - at least LG learned to put in a user replaceable battery and SD card in the Optimus Pro. HTC hasn't figured this out yet.
Burnt bridges with vendors - Constantly ordering the highest volume tier from their suppliers and then trying to walk back from the high initial order quantities later leaves a foul taste.
Burnt bridges with customers - A 4-month phone (HTC DROID DNA), a 36-day phone (HTC Status); on-again, off-again build quality (HTC One X, HTC One). The slowest software updates of any OEM.

Sprint is slowly but surely righting their ship. HTC is drifting without a clue about how to fix their brand.

hmmm says:

People were excited about the HTC One X or whatever it was called last year too. This year is no different.

Nreeldeep says:

Or the HTC EvoLTE from last year.

oddom says:

I have never seen this level of carrier support for any htc product personally. The htc one in every mobile store that carries it here in vegas has giant signs for the htc one (as well as the gs4) bu the product displays on equal footing. I can't wait to see an underdog scrap its way back up a bit.

XavierMatt says:

This disappoints me. I bought the one not only because it's an amazing phone but because I am trying to support them. They better not eff up. They act like they have never heard of marketing. Apparently Samsung has.