Profits slide at HTC

 

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By Stuart Turton

Posted on 7 Apr 2009 at 11:11

HTC has seen first-quarter net profits dip 30%, but remains confident full-year revenues will hit forecasts as it prepares to roll out new products.

Net profit hit $146.7 million for the quarter ended 31 March, down from $210 million the year earlier. Revenue slid 3.4% to $954 million.

The Taiwanese smartphone maker blamed the dip in profits on the weak economy and delays to shipments of new products, including the new Android-based Magic smartphone, which was pushed back from an April to a May release in Europe.

However, despite the overall revenue decline, HTC claims sales grew 12% in March, buoyed by the arrival of new Touch smartphones. The Touch arrested sales declines of 10% in the first two months of the quarter.

The company says it is sticking to its previous forecast of double-digit revenue growth in 2009, though it will keeping a wary eye on RIM which recently reported an 84% rise in revenues for its fourth quarter.