HTC reports second-quarter revenues of T$91 billion

Telecom Lead Asia: HTC on Friday said its second-quarter
revenue grew to T$91 billion, improving from T$67.79 billion in the previous

HTC’s unaudited April-June net profit was T$7.4 billion,
down from T$17.52 billion in the same period a year earlier, but up from T$4.47
billion in the January-March quarter.

Last month, HTC cut its second-quarter revenue target by
more than 13 percent to T$91 billion and cut its operating margin forecast by 2
percentage points to 9 percent, but kept its gross margin target at 27 percent.

HTC cited the poor economic situation in Europe that was
hurting consumer demand, as well as delays to shipments of new phones to the
United States due to a requirement for customs inspections after it lost a
patent dispute with Apple.

HTC said consolidated sales for June were T$30 billion,
down 33.4 percent from the same month a year earlier and unchanged from May.

Recently, Samsung posted record second-quarter earnings,
driven by runaway sales of its Galaxy smartphone.

HTC is betting on its new One series of phones to regain
market share lost to Samsung and Apple.

HTC will be pressured by a sales slowdown faced by the
entire industry as the eurozone crisis continues to dampen global consumer
sentiment, according to reports.

HTC has not renewed the contracts of some workers hired
during the high season for its production line. The number affected is not more
than 1,000.

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