It has not been an easy road for HTC in recent years. It has seen its market share drop and profits vanish as sales have plummeted. Last year’s HTC One garnered solid reviews but sales did not meet expectations. Things may finally be looking up a bit for HTC though. The company announced today that it expects to return to profitability in Q2 even as revenues are expected to slip when compared to the same quarter a year ago. Speaking today to reporters, Chief Financial Officer Chialin Chang said, “We’re seeing an encouraging sign, a good start. (The question is) how we sustain it.” The company expects Q2 revenues to come in at between TW$65 billion (about CA$2.36 billion) and TW$70 billion (about CA$2.54 billion) based on strong sales of both the HTC One (M8) and the mid-range HTC Desire 816.
The Company expects to see positive trajectory of its revenue in April from March and forecasts quarter-on-quarter revenue growth in the second quarter, driven by strong market demand for its new products, including flagship HTC One (M8) and mid-tier flagship Desire 816. The Company expects to return to profitability in the second quarter, as indicated on the earnings call on Feb 10, 2014.
Financial results in Q1 were not quite as strong though. Revenues came in at TW$33.12 billion (about CA$1.2 billion), leading to a net loss of TW$1.88 billion (about CA$70 million). Should revenues nearly double in the next quarter, it could well a sign that HTC is indeed turning the corner.
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Sources : HTC // The Wall Street Journal