HTC made a rare profit during Q1 2018, largely thanks to Google

Here’s something you don’t hear every day: HTC actually made a profit last quarter. Specifically, a net profit of NT$21.1 billion, equating to around US$706 million, generated between January and March 2018.

Unfortunately for a company that’s been on a losing streak for a good few years now, this Q1 win is not owed to some spectacular U11 comeback, thriving U11+ sales or an overnight Vive break into the mainstream.

Instead, HTC technically had yet another poor quarter, with NT$5.2 billion (US$175 million) operating losses produced by the firm’s core business operations, which were offset by the $1.1 billion cashed in as a result of a Google deal involving intellectual property, engineering and tech staff.

Still, this puts an official end to a bleak period of 11 consecutive quarters in the red for one of Android’s pioneers and biggest innovators over the years, which will try again later this month to turn a high-end phone into a commercial hit.

Alas, HTC’s quarterly NT$8.8 billion revenues took a massive dive from both Q1 and Q4 2017’s NT$14.5 and NT$15.7 billion totals, with a gross margin of -3.1 percent, although investors are likely to focus on their rare NT$25.7 gain per share. At least until Q2 concludes, with April 2018 earnings painting yet another dreary picture ahead after a 24 percent monthly dip and 55 percent yearly slump.

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About The Author
Adrian Diaconescu
Adrian has had an insatiable passion for writing since he was in school and found himself writing philosophical essays about the meaning of life and the differences between light and dark beer. Later, he realized this was pretty much his only marketable skill, so he first created a personal blog (in Romanian) and then discovered his true calling, which is writing about all things tech (in English).