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Taiwan's HTC returns a profit after 11 straight quarters of financial loss

The struggling phone maker reported its first quarter 2018 financial results on Tuesday

HTC at Mobile World Congress 2015 Barcelona (Credit: Kārlis Dambrāns/Flickr)

HTC at Mobile World Congress 2015 Barcelona (Credit: Kārlis Dambrāns/Flickr)

TAIPEI (Taiwan News) - The Taipei-based smartphone and virtual reality device maker HTC reported its first quarter financial results on Tuesday, which noted a revenue of NT$8.8 billion and loss of NT$5.2 billion, while the deal to sell part of its smartphone assets to Google last September contributed a large amount of non-business income and boosted profitability in Q1, after 11 straight quarters of loss.

With the US$1.1 billion deal, the beleaguered smartphone maker reported an after-tax net profit of NT$21.1 billion (US$0.71 billion) with earnings per share of NT$25.7 (US$0.86).

Some market analysts are optimistic about the financial results of the company for the rest of the year due to the money from the deal, while some worry that the loss of one of its most productive teams would hamper its hardware development efficiency, reported Liberty Times.

TrendForce has a pessimistic forecast for HTC smartphone shipments during 2018, which they predict will fall to 1 million.

The company's latest flagship phone U12+ is slated to be released on May 23, which is believed to have been developed before striking the deal and to be the last phone sporting Qualcomm's Snapdragon 845.

Last year, HTC announced a deal to sell most of its smartphone team for US$1.1 billion to bolster Google's nascent hardware business. The company said the deal includes a non-exclusive licensing agreement for HTC intellectual property. The sale is believed to allow HTC to focus on sustaining innovation efforts in areas of the virtual reality ecosystem, Internet of Things, augmented reality and artificial intelligence.