HTC signalled an upturn in sales in the second quarter compared to the first three months of the year, but sales were still down sharply from a year ago. Its quarterly revenue of TWD 18.9 billion was up 27 percent form Q1, which HTC attributed to the launch of its flagship HTC 10 smartphone and HTC Vive virtual reality headset. The Vive launched on time to consumers in early April and to businesses in June, and HTC has been working to build up a network of partners to promote the device.
Sales of the premium devices helped lift its gross margin to 11.4 percent in Q2 from 9.2 percent in Q1. The operating loss narrowed to TWD 4.2 billion from TWD 4.8 billion in Q1 and TWD 4.9 billion a year ago. Helped by a gain of TWD 1.0 billion on the sale of land in Taiwan, the net loss shrunk to TWD 3.1 billion from TWD 8.0 billion a year ago.
HTC said it expects the sales momentum to continue in the second half of the year. "In the space of one year, we have re-imagined the company, reclaimed our top spot for innovation, and demonstrated solid execution across our major product lines," said CEO Cher Wang. "I believe that HTC has regained its innovative zeal and is looking ahead with confidence and ingenuity."
