HTC reports US$62 million net loss in Q114

HTC reported another loss-making quarter, as its sales for the three months to end-March came in below expectations, although it is forecasting an imminent return to profitability.

In a statement, the Taiwanese vendor said that it “expects to see a positive trajectory of its revenue in April from March, and forecasts quarter-on-quarter revenue growth in the second quarter, driven by strong market demand for its new products, including flagship HTC One (M8) and mid-tier flagship Desire 816”.

For the first quarter, HTC reported a net loss of TWD1.88 billion (US$62.15 million), compared with a modest prior-year profit of TWD85 million. Revenue was TWD33.12 billion, down 22.6 per cent from TWD42.79 billion in Q113.

Earlier this year, HTC said it was anticipating first-quarter sales of TWD34 billion to TWD36 billion, meaning the current numbers are below this guidance.

Despite a downward trend in sales, HTC has previously only reported one quarterly loss – in the third quarter of 2013.

HTC’s recently announced One (M8) has been largely well received, and is a successor to the similarly well-regarded One. But despite the critical success of its predecessor, HTC has still struggled to gain ground against high-end devices from rivals such as Apple (iPhone 5s) and Samsung (Galaxy S4).

And One (M8) will not have an easy debut, arriving on the market at roughly the same time as Samsung’s Galaxy S5.

HTC has also previously acknowledged its weakness in the mid-tier, a sector where it has previously performed well.