HTC reports reserved Q1 '13 outlook
By Ted Chen, The China PostTAIPEI, Taiwan -- HTC Corp. announced its outlook for the first quarter of 2013, indicating revenue projection of NT$50 to NT$60 billion, which may potentially dip by 16.6 percent quarter-on-quarter.
February 5, 2013, 12:24 am TWN
The company also reported its fourth-quarter results, with revenues at NT$60 billion, gross and operating margins at 23 and 1 percent, respectively. It yielded net income of NT$1 billion, and earnings per share of NT$1.21.
A number of institutional investors said HTC's announced results were worse than expected, while projected profitability is expected to dip slightly in the first quarter with gross and operating margins targeted at 21 to 23 percent and 0.5 to 1 percent, respectively.
Despite its rather reserved outlook, the company is confident in its forthcoming new handsets — the M7, M4, and G2 models, purposed for the high, middle, and low end markets, respectively.
Differing from its past strategy of exclusivity, HTC's flagship M7 will be available for a number of major carriers. The company indicated that in Europe, the M7 will be offered by Vodafone and an additional carrier, and by AT&T, T-Mobile, and Sprint in North America.
The handset maker also reported stellar contributions from its collaboration with telecoms carriers. The wildly popular “Butterfly” handset, the first to feature a 1080p high resolution super LCD display, was unveiled last October by Japanese carrier KDDI, while the similar variant “Droid DNA” was released a month later in North America by Verizon to generally favorable reception. The company indicated that this collaborative trend will continue this year.
HTC said their 8X and 8S handsets are still considered the leading devices for the fledgling Windows Phone 8 platform, but expressed their desire to have access to more HTC-oriented customization so as to attract more sales.
Shares for HTC fell by NT$4.5 yesterday, with an intraday high of NT$289, low of NT$283, and closed NT$285.5, representing a dip below its 5- and 10-day moving averages.