HTC Q1 results: profits are down, expected to bounce back in Q2

HTC's preliminary report made it pretty clear that the last couple of quarters were pretty tough for the company. Now, their full report is out and it gives us some more details on how HTC performed in Q1 of 2012.

The company's revenue ($2.3 billion) dropped about 34% both quarter on quarter and year on year. HTC attributes that to the product transition cycle (the new HTC One series went on sale after Q1 ended).

                                                   1Q 2012 P&L(CONSOLIDATED)

HTC managed to cut down operating expense during Q1 (mostly by reducing marketing costs), but the operating profit of $173 million was down 60% quarter on quarter and 69% compared to Q1 of last year. Both gross margin and operating margin are down as well.

For the second quarter of this year, HTC expects these margins to reach their Q4 2011 levels and the projected revenue is $3.59 billion or about what they were a year ago.