HTC posts healthy profit on soaring sales
Profit rises nearly 200 percent during the first quarter. The maker of the Thunderbolt and other gadgets credits its success to huge growth in its smartphone business.
Handset maker HTC tallied an exceptionally strong first quarter, and it expects that success to continue.
During the first quarter of 2011, HTC generated a profit of 14.83 billion Taiwan dollars (US$518 million) on revenue of 104.16 billion Taiwan dollars. The company's profit was up 196.8 percent year over year, and its revenue figures catapulted by 174.5 percent over the first quarter of 2010.
"Thanks to the hard work of our employees and support from consumers worldwide, we had a phenomenal quarter with record sales and profits," HTC CEO Peter Chou said in a statement.
The success during the quarter was due to the huge growth HTC witnessed in its smartphone business. The company said that a total 9.7 million smartphones shipped during the period, representing a gain of 192 percent year over year. HTC said the Thunderbolt, and were "met with strong customer demand" during the first quarter.,
All that success has caused HTC to outgrow its current staff levels. The company said today that it plans to add 1,000 employees to its marketing, operation, and R&D divisions.
Looking ahead, HTC sees continued success in the mobile market. The company said that smartphone shipments are forecast to be up 113 percent in the second quarter to as many as 11.5 million. It expects its revenue to rise 97 percent year over year to 120 billion Taiwan dollars.