HTC reports 2012 first-quarter results
Taoyuan, Taiwan, April 24, 2012 – HTC Corporation (TWSE: 2498), a global leader in mobile innovation and design, today announced consolidated results for the first quarter of 2012.
1Q 2012 results
HTC’s first quarter revenue was NT$67.79bn, with gross margin of 25.03% and operating margin of 7.53%. Net profit and EPS were NT$4.47bn and NT$5.35, respectively. The decline in revenue was primarily a result of the product transition cycle, with new product line sales beginning to ramp at the end of the first quarter. Gross margin was impacted by the margins of older products, and lowered scale contributed to a lower operating margin during the quarter.
“The last two quarters were a ‘rebuilding’ period for HTC,” said Peter Chou, CEO of HTC. “We focused on creating and launching our next family of hero products, the HTC One, while continuing to grow our brand awareness and preference globally. The market response to the One has been very positive and—combined with regionally focused devices—we believe it will take HTC into its next phase of growth.”
The HTC One—unveiled at Mobile World Congress in February—and available in different regions throughout the next few months, has enjoyed strong customer endorsement with more than 140 inaugural global operators and distributor partnerships. In addition to the global launch of the One, HTC demonstrated its commitment to the China market with the launch of the HTC Desire V series, bringing a premium experience to the vastly growing mass smartphone market. It has also launched the EVO 4G LTE with Sprint ensuring broad coverage for HTC in the US smartphone market. In addition, HTC and KDDI launched the HTC J smartphone, bringing the Japanese-styled look and feel with customized local features.
HTC’s new global marketing campaigns kicked off in April, supporting its hero device launches and taking a more holistic and efficient approach to global marketing to expand its brand equity and preference. Through this ongoing global campaign, the company will deliver a unified global message across its key channels and from this HTC expects to see an increase in both brand value and sales momentum.
2Q 2012 Outlook
The Company’s outlook for the second quarter of 2012 is as follows:
- • 2Qvenue expected to be around NT$105bn
- • Gross profit margin expected to be around 27%
- • Operating margin expected to be around 11%
1Q 2012 Conference Call and Webcast
HTC will host its quarterly conference call in Chinese beginning at 4 p.m. (Taiwan Time, GMT+8), and quarterly conference call in English beginning at 8 p.m. (Taiwan Time, GMT+8) on Tuesday April 24, 2012. The conference call in Chinese will be webcast live with audio and slides at：
http://www.mzcan.com/cancast/taiwan/index.php?id=tw2498_148&version=c the call in English is
Founded in 1997, HTC Corp. (HTC) is the creator of many award-winning mobile devices and industry firsts. By putting people at the center of everything it does, HTC pushes the boundaries of design and technology to create innovative and personal experiences for consumers around the globe. HTC's portfolio includes smartphones and tablets powered by HTC Sense®, a multilayered graphical user interface that vastly improves user experience. HTC is listed on the Taiwan Stock Exchange (TWSE: 2498). For more information, please visit www.htc.com.