HTC's Profits Nosedive by 58% in Quarter 2

[dgstorm]

It's funny how quickly a company can begin a downward spiral from a few missteps (or a few lawsuits from Apple). RIM and Nokia easily come to mind as companies struggling for survival in the heated battlefield of the technology retail sector. However, you wouldn't have thought the same thing about HTC just about a year ago. At that time, HTC was pretty much riding high on growing profits and was the number one Android smartphone manufacturer. Not so anymore. The end of last year was abysmal for them, and Quarter one of this year wasn't any better. Now they jut released their Quarter 2 financials and they hemorrhaged profit by a whopping 58% drop. That's a lot of bleeding!

They claimed the primary factors for the decline was the hold up in customs of their flagship phones because of the Apple lawsuit victory, and slower than expected sales. Hmmm... it looks like Apple's lawsuit war is taking its toll. Here's a quote from HTC with a brief and unaudited look at their financials,

HTC RELEASES UNAUDITED RESULTS FOR 2Q 2012

Taoyuan, Taiwan – July 6, 2012 – HTC Corporation (TWSE: 2498), a global leader in mobile innovation and design, today announces unaudited consolidated results for 2Q 2012. For the second quarter of 2012, total revenues reached NT$91.0 billion. Unaudited operating income was NT$8.2 billion, net income before tax was NT$8.9 billion, net income after tax, excluding minority interest, was NT$7.4 billion, and unaudited earnings per share after tax were NT$8.90 based on 831,227 thousand weighted average number of shares.

The HTC One X is an amazing phone. I wonder what its going to take for HTC grow strong again?

Source: BGR

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