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HTC sees Q1 revenue to drop 6-13% (update)

HTC sees Q1 revenue to drop 6-13% (update)

Taipei, Feb. 6 (CNA) Taiwanese smartphone maker HTC Corp. (???) on Friday forecast that its quarterly revenue for the first quarter could fall short of analysts' expectations because of it being a slow season for consumer electronics.
The Taoyuan-based company estimated that its first-quarter revenue will range between NT$41.5 billion and NT$45 billion (US$1.32 billion and US$1.43 billion), down by 6 percent to 13 percent from the NT$47.9 billion seen in the fourth quarter of last year. Local analysts have anticipated HTC's revenue to be flat or increase slightly sequentially based on its wider offering of smartphones and accessories, such as the RE action camera launched last October. Gross profit margin is expected to slide to between 19.5 percent and 20 percent during the first three months of 2015 from 20.4 percent in the previous quarter, with an estimated earnings per share of NT$0.08-NT$0.47, HTC said in a statement. HTC shares ended up 0.96 percent at NT$158.50 Friday in Taipei before the earnings announcement. The Taoyuan-based handset maker stayed profitable in the last quarter of 2014, with year-on-year revenue growth of 12 percent. Net income was NT$500 million, or NT$0.57 per share. HTC said its gross margin of 20.4 percent and operating margin of 0.4 percent in the fourth quarter reflected the highly competitive smartphone environment but stressed that the company's smartphone lineup continued to gain market share in key markets. "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," said HTC CEO Peter Chou (???). "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," Chou said in the statement. Also on Friday, HTC reported consolidated revenue of NT$12.3 billion for January, down 19.16 percent from the previous month but up 26.93 percent from a year earlier. (By Jeffrey Wu)


Updated : 2021-09-21 22:56 GMT+08:00