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HTC shares soar as profits rise

Not out of the woods yet

Shares of HTC shot up 4.7 percent this morning after the struggling smartphone maker posted a quarterly net profit that slightly beat analysts' forecasts.

The launch of new flagship and midrange phones, cost cutting and disposal of assets helped HTC swing back to a profit in the second quarter. The company reported a net profit of US$75.6 million in the second quarter, up 80 per cent from the same quarter in 2013 and better than a net loss $5.5 million in the previous quarter.

It was not all good news. The revenue barely met the company's guidance, which shows it is still struggling to match sales with Samsung Electronics and low-cost Chinese competitors. HTC, the top seller of Android smartphones in the US some three years ago, has fallen out of the world's top 10 vendors. The company is betting that a new high-end flagship smartphone, the HTC One (M8), will make things better.

Chief Financial Officer Chialin Chang said in May that HTC had worked to smooth out supply-chain issues, has introduced low-price smartphones in emerging markets and has begun outsourcing some production to cut costs.

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