Not a comeback yet: HTC’s Q2 profit rises QoQ to $41.6m but earnings are below expectations

Not a comeback yet: HTC’s Q2 profit rises QoQ to $41.6m but earnings are below expectations

HTC has posted improved results for its second quarter of 2013, after the Taiwanese phone-maker revealed profit of NT$1.25 billion ($41.63 million) from revenue of NT$70.7 billion ($2.35 billion). Despite an increase, the profit came in below analyst expectations of $70 million plus.

The numbers are from its unaudited results for the three-month period, and are much improved from the record low Q1 2013 financials of $2.88 million (NT$85 million) in profit and $1.45 billion (NT$42.8 billion) in total sales.

Still — despite launching the flagship One smartphone — HTC’s Q2 2013 profit is down a whopping 83 percent on Q2 2012.

The company showed its first sign of comeback in May, when it recorded revenue of NT$29 billion ($970 million) and, though sales for June dropped 24 percent to NT$22 billion ($732 million), the company is at least continuing to be profitable.

However, it is being over-shadowed by internal turmoil. Even the day that the May sales, which was its best month of business for nearly one year, were announced there was yet another exit as COO Matthew Costello became the latest C-level exec to leave his role.

HTC had earlier confirmed that Lennard Hoornik, CEO of HTC Asia, left the company to pursue “other interests”. That departure followed a similar exit by Jason Gordon, Vice President of Global Communications and Chief Product Officer Kouji Kodera.

A number of other employees, including Rebecca Rowland, Global Retail Marketing Manager, John Starkweather, Director of Digital Marketing and Eric Lin, Product Strategy Manager have also left the company.

On the handset side, the One has sold more than 5 million units but HTC’s other new release — the First — has struggled. Its UK launch was tellingly postponed indefinitely “following customer feedback” from customers in the US.

Headline image via YOSHIKAZU TSUNO / Getty Images

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