HTC's financial woes have continued with its quarterly operating profit nosediving 86.5% during the past 12 months.
The troubled Taiwanese phone maker posted its results for the quarter to 30 June this morning. While its NT$1.1bn (£24.0m) profit was an improvement on its first quarter profit of NT$40m (£871,000), it is sharply down on a year ago. Sales were down year on year by 22.3% to NT$70.7bn (£1,54bn), although they improved 65.2% on the previous quarter. Margins were heavily hit, with the manufacturer blaming higher costs, its lack of economies of scale and clearing older products from the channel.
No details for the UK market were stripped out although HTC said it saw 'renewed strength' in Europe, Middle East and Africa and a sequential sales increase in the United States on its previous trading quarter. It said the HTC One was performing better than its One series suite of handsets from 2012.
Its third quarter looks to be gloomy, with sales predicted to be as much as 28.6% down on 2012 at NT$50bn (£1.09bn). Operating margin could be as low as minus 8%, sliding the manufacturer into a loss. It said mid-tier products would be launched in the coming months with the manufacturer predicting a return to 'momentum and market share' in its fourth quarter.
CEO Peter Chou said: 'My leadership team continues to focus on execution. We are seeing expected results as we fill the channels and meet demand for the new HTC One. As we broaden our focus to include a new member of the HTC One family, the recently announced One mini, we are looking forward to delivering great products and results in 2H.'
Author: Graeme Neill