Tue, May 07, 2013 - Page 13 News List

HTC revenue boosted by new flagship phone sales

SECOND WIND:HTC said it sees second-quarter sales growing 63.55 percent to NT$70bn, a target analysts said was not only feasible, but may well be exceeded

By Helen Ku  /  Staff reporter

Smartphone vendor HTC Corp (宏達電) yesterday posted 23.43 percent growth in consolidated revenue for last month after the new version of its flagship product, the HTC One, went on sale.

The Taoyuan-based company said its sales reached NT$19.6 billion (US$663.17 million) last month, compared with NT$15.9 billion in March and NT$31.03 billion a year ago.

Last week, it forecast that second-quarter sales would grow 63.55 percent to NT$70 billion. With sales of NT$19.6 billion last month, it will have to earn NT$50.4 billion in between this month and next month to meet that target.

“At first glance, April sales seem weak, which could cap HTC share price performance in the near term,” Daiwa Capital Markets analyst Birdy Lu (呂家霖) said in an e-mailed note yesterday.

“However, we believe HTC can achieve its second-quarter guidance, or even exceed it, given that its second-quarter sales pattern is very back-end loaded [with a lot of new products to be launched].”

During the first four months of the year, HTC’s accumulated consolidated revenue totaled NT$62.38 billion, down 36.88 percent from the NT$98.82 billion recorded in the same period last year.

HTC shares closed up 0.36 percent at NT$280.5 in Taipei yesterday, underperforming the broader market, which advanced 0.42 percent.

Lu said he retained a positive outlook on HTC and rated the company’s shares “outperform” for the next six months.

Meanwhile, Largan Precision Co (大立光), the nation’s leading maker of handset lenses, said sales last month expanded 62 percent to NT$1.91 billion from NT$1.18 billion a year ago.

For the first four months of the year, Largan, which supplies camera lenses to HTC, Apple Inc, Research In Motion Ltd and Samsung Electronics Co, saw sales rise 46 percent to NT$7.02 billion from the NT$4.82 billion posted during the same period last year.

Largan’s shares closed up 3.95 percent yesterday at NT$842.

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