This article was published on April 24, 2012

HTC forecasts 55% increase in revenues in Q2, as sales of its One range take hold


HTC forecasts 55% increase in revenues in Q2, as sales of its One range take hold

HTC believes it will see an upturn in its finances in its second quarter, predicting a 55% increase in revenues in its second quarter as sales of its new One range of Android smartphones begin to take hold.

Reuters reports that the company expects its second quarter revenue to total T$105 billion ($3.56 billion) with a gross margin and an operating margin at 27% and 11% respectively, up from 25.03% and 7.53% in the previous three months.

Earlier in the month, HTC announced it first-quarter financial results, posting revenues of NT$67,790 million (roughly $2.3 billion), a decrease of nearly 35 percent year-on-year. Whilst it was in line with HTC’s earlier projections – its outlook for total revenues in Q1 2012 was “between NT$65 billion and NT$70 billion”.

For your comparison: in the fourth quarter of 2011, HTC revenue was NT$101.42 billion ($3.43 billion). Net income before tax in Q1 2012 was NT$5,551 million (approximately $180 million), while net income after tax came in at NT$4,464 million (roughly $151 million).

In all, HTC saw staggering 70% decline compared to net profits the company booked in the same period last year.

The company hasn’t announced how well its range of One smartphones have performed since they launched earlier in the month, but with the company going back to focusing on experiences, rather than minor hardware improvements, it has given itself a good chance of taking the fight to Apple and Samsung.

Samsung is due to announce its ‘Next Galaxy’ smartphone on May 3, potentially stealing sales away from HTC. However, a rise in revenues suggests that the company is starting to reverse its fortunes, but its long-term success will hinge on its ability to continue selling enough smartphones in the face of the next big hit from its rivals.

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