High Tech Computer Corp (HTC, 宏達電), the world’s biggest maker of phones running Microsoft Corp’s system, expects revenues this year to grow more than 20 percent year-on-year, helped by sales of its new “Touch” phone next month, a company executive said yesterday.
Sales in the current quarter could reach NT$34 billion (US$1.12 billion), with 70 percent coming from high-priced third-generation (3G) handsets, aided by a new product launch on May 6 in London, HTC financial executive Cheng Hui-ming (鄭慧明) told an investor’s conference.
That would represent a 27 percent increase from NT$26.86 billion during the same period last year, or a 7 percent quarter-on-quarter increase.
Cheng also said the company was on track to hit its full-year revenue growth target of between 20 percent and 25 percent.
“This is the most important product for HTC this year,” Cheng said. “With this phone, we’re confident of landing orders from most major operators.”
But Cheng also warned of possible delays in shipments, as HTC has yet to obtain certification for the new handset model.
“Postponing shipments of the new Diamond model may put the share price under pressure during Monday’s trading. Investors are highly sensitive to delays in product launches,” said Lu Chia-lin (呂家霖), an analyst at Macquarie.
Macquarie has an “outperform” rating on HTC, with a target price ofNT$1,020, which implies about 30 percent upside.
“HTC’s outlook for the second quarter, however, looks quite good,” Lu said, adding that its net income may be sustained at first quarter levels.
Earlier this month, HTC said that net profits expanded at a faster-than-expected 25 percent year-on-year to NT$6.94 billion after deducting spending for employee bonuses, as it sold more high-margin 3G phones.
Gross margins this quarter may drop by half or a full percentage point to 35 percent or 35.5 percent from last quarter’s 36.1 percent because of a one-time inventory write-off — not demand concerns, Cheng said.
“[Demand in] Europe looks similar to what we saw in November and December,” Cheng said.
HTC derives the bulk — or 40 percent — of its sales from Europe.
Average selling prices are expected to remain firm in the current quarter, Cheng said, despite claims by rivals, such as Nokia Oyj, saying European demand was shifting to lower-priced models in the face of the economic slowdown.
HTC also plans to raise its dividend payout ratio to about 70 percent based on last year’s earnings. The company paid out 60 percent last year.
The board yesterday approved a proposal to distribute NT$34 per share in cash dividends and 30 percent in stock dividends based on the company’s earnings last year of NT$28.93 billion, or NT$50.44 per share.
The proposal will be voted on at the company’s annual shareholder’s meeting on June 30.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
RSS