HTC predicts further revenue decline in third quarter

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The manufacturer expects revenues between £1.09 billion and £1.3 billion compared to £1.6 billion in the second quarter. It has bolstered its team with former Apple and Nokia employees, however

HTC has predicted its revenues will fall again in the third quarter of 2013.

The Taiwanese manufacturer today (July 30) said it expects revenue for July, August and September to be in the range of NT$50 billion (£1.09 billion) to NT$60 billion (£1.3 billion).

This would be the company’s eight consecutive quarter decline. In its 2012 third quarter, HTC reported revenues of NT$70.2 billion (£1.5 billion).

Gross profit margin (the total made from a sale accounting for production costs) for Q3 is expected to be between 18 per cent to 21 per cent for the third quarter, down from 23.2 per cent in the second.

Operating margin (the ration of profit to revenue) is expected to be in the range of 0 per cent to -8 per cent, down from 1.5 per cent in Q2.

Q2 results

The news comes after HTC reported its financial results for the second quarter of 2013 (April, May and June) on July 5 (full story here).

It reported revenues of NT$70.7 billion (£1.6 billion) for the second quarter of 2013, up from NT$42.8 billion (£932 million) in the first three months of the year.

Revenue slightly exceeded the Taiwanese manufacturer’s estimates for the quarter of NT$70 billion (£1.52 billion).

However, profits fell from NT$7.40 billion in Q2 of 2012 to NT$1.25 billion (£27 million) – a year-on-year decline of 83 per cent. Analysts had predicted profits of up to £47 million.

Monthly figures show sales fell 24 per cent in June to NT$22 billion (£49 million) after hitting NT$29 billion (£65 million) in May.

Today (July 30) HTC revealed sales of its high-end devices improved in China and that it gained market share in its home market of Taiwan.

The company saw “renewed strength” in major Western European markets and emerging countries.

New appointments

HTC has appointed a former Apple employee to head its South Asian division.

Jack Yang, previously head of iPhone and iPad sales in Southeast Asia for Apple, will take on the role of president of South Asia for HTC.

Sirpa Ikola, previously head of smart devices business in Southeast Asia for Nokia, has been appointed as HTC’s senior director of marketing for SouthAsia.

Lorain Wong, previously director of partnership marketing for US operator AT&T, will take the role of HTC vice president of global PR, corporate and internal communications.

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