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HTC Q2 revenue forecast lower than expected (update)

HTC Q2 revenue forecast lower than expected (update)

Taipei, April 28 (CNA) Taiwanese smartphone maker HTC Corp. (???) gave a forecast for second quarter revenues on Tuesday that came in lower than expected despite the launch of its flagship One M9 phone in March. The Taoyuan-based company projected revenues of NT$46 billion (US$1.5 billion) to NT$51 billion for the April-June quarter of 2015, with earnings per share of NT$0.06 to NT$0.34. That would represent quarterly growth of 10.8 percent to 22.9 percent, lower than the average 50 percent growth estimated by analysts. The company forecast its gross profit margin for the quarter at 23 percent to 23.5 percent, which would be an increase from 19.7 percent in the first quarter. HTC turned in another profitable quarter for the first three months of 2015, when its revenue grew 25 percent from the previous year to NT$41.5 billion. Earnings per share also rebounded to NT$0.43. The flagship HTC One M9 was unveiled March 1 at the Mobile World Congress show, while the HTC One M9+ with a larger screen was introduced in early April in specific emerging markets including China. HTC also reshuffled its management at the end of the first quarter to put more of a priority on connected smart devices.
HTC co-founder and chairwoman Cher Wang was appointed chief executive officer, and former CEO Peter Chou was appointed head of HTC Future Labs.
According to the company, the move freed up Chou to focus on new product areas that could create new revenue streams and broader brand penetration for HTC in the future. "We have continued to raise our game over the last few months, and the Q1 results reflect the hard work we have put into consolidating our processes and operations, while enhancing our core focus of superlative design and technology for the mobile lifestyle," Wang said in statement. "More important, we have made strides in expanding our product offerings into new connected smart devices in areas such as fitness and entertainment," she said.
"Just as HTC pioneered the smartphone market, it is vital that we drive the connected lifestyle through our pursuit of brilliance and by engaging strategic partners to bring the best and most innovative products to market." HTC shares ended down 1.13 percent at NT$131.5 on Tuesday in Taipei. (By Jeffrey Wu)


Updated : 2021-09-23 18:31 GMT+08:00