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HTC Aims for US$1.59 Billion in Q2 Sales

2010/05/06 | By Ben Shen

Taipei, May 6, 2010 (CENS)--HTC Corporation, Taiwan's leading manufacturer of branded smart phones, aims to secure US$1.59 billion in sales in the second quarter of this year, surpassing institutional investors' expectations.

The higher-than-expected sales performance is attributable to the fast-growing sales of medium- and high-tier handsets, with the company to challenge 4.5 million units of handsets and turn a profit equivalent to its paid-in capital in the second quarter.

After hitting an all-time-high record of US$520.76 million in sales in March, HTC made profits higher than market expectations. Recently, the company predicted to secure US$1.59 billion in second-quarter sales, up 33% from the preceding quarter and far exceeding market expectation of between US$1.43 billion and US$1.5 billion.

The company attributed the expected high growth in sales in the second quarter to the hot sales of medium- and high-tier 'Android'-activated handsets as the Desire, Legend and Incredible, which sold for over US$340.

Seeing the amazing performance, Macquarie Securities industry analyst C.L. Lu predicted HTC will see after-tax earnings reach US$0.27 per share in the second quarter of this year and whole-year per-share earnings to challenge US$1.08 this year.

HTC noted it sold 3.3 million handsets in the first quarter of this year, up 37% year-on-year. The company forecast second-quarter sales will grow 50% year-on-year to reach 4.5 million units.