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HTC's profit up, but no sign of recovery just yet

Mobile device maker posts revenue of $2.2 billion and a profit of $76.5 million during the quarter that ended in June.

Don Reisinger
CNET contributor Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.
Don Reisinger
2 min read

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HTC had a better period in terms of profit during the three months that ended June 30, though its revenue continued to slide.

The Taiwan-based mobile device maker on Thursday reported (PDF) revenue of NT$65.1 billion ($2.2 billion), down from the NT$70.7 billion it generated during the same period last year. While that was a disappointment, the company was able to boost its profit to NT$2.3 billion ($76.5 million) after taxes.

While HTC pointed to an increase in profit, the company's revenue was cause for concern on its investor call, according to the Wall Street Journal. The quarter was the 12th consecutive period with year-over-year declining revenue. Still, HTC said it expects the fourth quarter to be stronger, thanks in large part to the HTC One M8 smartphone and other devices it has planned.

Exactly what HTC has planned in the coming months has been the subject of much debate. The company said Wednesday that it will host a media event on August 19 in New York City -- where it is expected to announce its 8-inch Nexus 8 tablet. HTC may also unveil a new smartwatch at that event.

Still, the real trouble for HTC has been in the smartphone and feature phone market where the company has faced trouble overcoming the shadow cast by the likes of Apple and Samsung, as well as Xiaomi and Lenovo in China.

HTC CFO Chialin Chang didn't shy away from the realities of the company's troubles in the investor call, saying that while there was some "initial excitement" for the HTC One M8 and other newer devices, sales "have settled at a lower level." Still, according to the Journal, Chang took a positive approach to that, telling investors that the slide hasn't continued.

"The good thing is it is stabilized," Chang said.

CNET has contacted HTC for comment on the earnings. We will update this story when we have more information.