HTC Scores EPS of NT$7.15 for 2007

Taipei, March 17, 2008 (CENS)--High Tech Computer Corp. (HTC), a leading vendor of handsets in Taiwan, recorded earnings of NT$7.15 per share for 2007, a new high since it became officially listed in Taiwan's stock exchange market, according to company sources.

HTC reported sales revenue of NT$130.614 billion and net profits of NT$15.061 billion, or NT$7.15 per share, for 2007, up 23.8% and 32.9% from a year earlier, respectively. Also, the firm already decided to dole out dividends of NT$5.7 per share to shareholders, with NT$5.5 in cash and NT$0.2 in stock.

In the fourth quarter 2007, HTC scored sales revenue of NT$35.7 billion, down 2% from a quarter earlier but up 24% from a year earlier, as well as net profits of NT$3.6 billion, or NT$1.7 per share. However, the firm's gross profit rate for the quarter dropped to only 19.5%, below its average of 20% a quarter. Yancey Hai, CEO of HTC, explained that because focusing on shipment of components and inverters, the firm saw its gross profit rate decline in the quarter.

On the other hand, Hai continued to say that the sub-prime-mortgage crisis has yet to cause recessions in the U.S. market for notebook PCs, as the machines are widely regarded as consumer products instead of luxury goods. Over the past two months of this year, HTC has maintained a 20% sales growth.

Worth mentioning is that HTC expects its gross profit rate to drop by 1% this year, due mainly to increasing labor costs caused by China's Law on Employment Contracts. Besides, as company's employee bonus is to be listed as expenses in accounting in Taiwan, HTC already estimates the additional expenses to erode its net profits by 18.5% this year.