HTC posts lowest quarterly profit on record

HTC has announced the financial results for the first quarter of 2013 and they are not good. Continuing the dismal performance, HTC posted its lowest quarterly profit on record. Many believe that HTC One delays contributed a lot to these financial results for the struggling Taiwanese smartphone maker.

The net-income of HTC plunged to just NT$85 million ($2.8 million) last quarter, making it the sixth consecutive decline for the company.HTC Monthly Results for Q1 2013

From the press release:

HTC Corporation today announces unaudited consolidated results for 1Q 2013. For the first quarter of 2013, total revenues reached NT$42.8 billion. Unaudited operating income was NT$43 million, net income before tax was NT$103 million, net income after tax was NT$85 million, and unaudited earnings per share after tax were NT$0.10 based on 831,227 thousand weighted average number of shares.

Bloomberg notes:

HTC lost early momentum for its HTC One handset in February as a shortage of camera components forced it to delay shipments in key markets by as much as a month. Prospects for revenue to rebound this quarter may be limited as the new device becomes widely available less than a month before Samsung Electronics Co.’s new Galaxy S4, which goes on sale in the U.S. on April 26.

With these poor results, some are even predicting that HTC might become an acquisition target.

The Guardian adds:

Some analysts think the company could become an acquisition target as its cashflow suffers and the market polarises towards expensive phones from Apple and Samsung, and cheaper Chinese ones.

These results also put pressure on company CEO Peter Chou, who had reportedly told senior staff in an internal meeting that he will step down if HTC continues to performance badly.  It is likely that he would stick one more quarter to see the impact of HTC One as well HTC First on the company fortunes.

What is even more disturbing that the results fell short of HTC’s already modest estimates of revenues between NT$50bn and NT$60bn (HTC posted first quarter revenue of just NT$42.8bn).


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