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HTC May revenue drops by 4.6%

TAIPEI--Taiwanese smartphone maker HTC Corp. (宏達電) reported worse-than-expected unaudited consolidated revenue Tuesday for May after two consecutive months of gains.

The company reported consolidated revenue of NT$21.1 billion (US$711.07 million) for May, down 4.6 percent from April and down 27.37 percent from a year ago, HTC said in an e-mailed statement.

Its total unaudited consolidated revenue for the first five months of the year is NT$76.3 billion, down 16.54 percent from the same period of the previous year, the statement said.

The May revenue cast a shadow over the Taoyuan-based company's forecast in early May that it will return to profitability in the second quarter after posting operating losses for three consecutive quarters.

It will need to see June revenue of NT$21.8 billion to reach that target.

HTC said its second-quarter consolidated revenue will be between NT$65 billion and NT$70 billion, which will be roughly double that of the previous quarter, and it estimated a gross margin of 21.3 percent to 22.0 percent.

Those projections would yield earnings per share of between NT$2.21 and NT$3.00, according to HTC.

HTC CEO Peter Chou said earlier that he expects new opportunities from the rapid development of TD-LTE in China and LTE in Taiwan. “We believe that we are on course for a strong 2014,” he said.

HTC said its sales in Europe, the Middle East and Africa remained solid, largely due to the successful launch of the HTC One M8, as well as continuous momentum from products such as last year's HTC One, the HTC One mini and the HTC Desire 500.

In China and India, both the HTC One M8 and HTC Desire 816 have shown strong momentum, the company said.

HTC shares closed down 6.25 percent Tuesday at NT$150 in Taipei, with prices falling by the daily maximum 7 percent, much worse than the 0.52 percent rise in the benchmark Taiwan Stock Exchange Index.

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