Company appears to be recovering on the back of the HTC One

HTC Corp. (TPE:2498) had good news and bad news on Monday.

The good news for the embattled Taiwanese OEM is that it appears to be pulling back from the edge of fiscal ruin.  Its May revenue hit NT$29.0B ($971.5M USD unaudited) versus NT$91.4B ($3.06B USD) for the first four months of the year.  The sharp jump in revenue comes as sales of the HTC One heat up.  Overcoming production difficulties, glowing reviews helped drive 5 million sales of the 1080p Android handset on its first month on the market.

The revenue numbers are almost back to where HTC was in 2012 (NT$30.0B or $1.00B USD), early in the company's slump.  The May sales mark was nearly triple the abysmal February 2013 sales low of NT$11.4B ($381.3M USD).

HTC Revenue table
[Image Source: GSMArena]
The potentially bad news is that the company has lost another executive, the latest in a string of high profile departures.  This time the casualty is Chief Operating Officer Matthew Costello, who spent less than three years at the firm.  Mr. Costello is being shuffled to HTC's Europe office where he will serve as an executive advisor.

The phonemaker listed the reason for the shuffle as "personal family reasons".  Over the past two years HTC has also lost its finance, design, and marketing chiefs.

Matthew Costello
Matthew Costello is out as HTC COO. [Image Source: Engadget]

HTC's vice president of engineering and operations, Fred Liu, will be taking on Mr. Costello's responsibilities, expanding his role.  Mr. Liu is a veteran, having been with HTC since 1998 and serving as a VP since 2006.

In an email to Bloomberg BusinessWeek, HTC announced it would be forming two new units -- a quality assurance division and a product lifestyle analysis division -- to try to better manage its product stream.  The QA division will be headed by Georges Boulloy, a refugee from Sony Corp.'s (TYO:6758Swedish-Japanese subsidiary Sony Ericsson.  Since its Sony buy-out, the former joint venture has been jettisoning much of its executive talent.

HTC is currently the fifth largest Android OEM behind Samsung Electronics Comp., Ltd. (KSC:005930), LG Electronics Inc. (KSC:066570), Huawei Technologies Comp. (SHE:002502), and ZTE Corp. (SHE:000063).  But it looks to rise back up the ranks and possibly crack the top five in Q2 2013, if it can build upon the strong May sales of the HTC One in June.
HTC BlinkFeed
The HTC One

HTC recently announced a "Senseless" version of its HTC One smartphone that is available from Google Inc.'s (GOOG) Play store.  Another potentially big boost to the handset is the recent news that it is coming to America's largest carrier, Verizon Communications Inc. (VZ) and Vodafone Group Plc.'s (LON:VOD) Verizon Wireless, this summer.

Sources: HTC, Bloomberg

"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA

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