HTC Profits 2014: Company Records First Profit In A Year Due To Cost Cuts Despite Middling Sales

By Matthew Buzzi , Updated Jul 03, 2014 02:24 PM EDT
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HTC's new flagship phone has delivered the company's first profitable financial quarter in a year.

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The One M8, which HTC needs to be a commercial hit to succeed financially, has driven its creator to a profit over the past three months, reports The Wall Street Journal. HTC announced its latest financials in a press release, which outlines the numbers that led to a profit.

The unaudited revenues for the last quarter show an overall income of NT$65 billion ($2.17 billion), leading to NT$2.26 billion ($75 million) in profits after tax. That works out to NT$2.74 per share based on 823,438 thousand weighted average number of shares, according to HTC.

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This actually represents lower sales for HTC the second quarter of last year, but cost-cutting processes performed during that time have saved the company money and allowed it to achieve a profit. Still, I imagine HTC would rather the One M8 sell more units than its predecessor, but it's currently doing enough to help the company turn its fortunes around.

The One M8 has been extremely well-reviewed, garnering near-universal praise for its design and attractive all-metal body. Some have called it the best Android phone yet, and it's mostly a personal preference whether or not you prefer Google's operating system to iOS.

For those that do, the One M8 may very well be the best phone you could buy, but HTC faces stiff competition in the Galaxy S5, backed by Samsung's substantial marketing budget. HTC has stepped up its advertising and social media presence following Samsung's successful strategy in targeting Apple with its ads, but it remains to be seen whether it will be effective enough to propel the smartphone to the top.

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