HTC Corp. reported its first quarterly profit in nearly seven years, though the gains stemmed entirely from selling its extended reality division to Google rather than improvements in its core business.
The Taiwanese manufacturer posted a net income of NT$4.05 billion ($128 million) in the first quarter, ending a streak of 27 consecutive quarterly losses. The profit was driven by a NT$8.2 billion ($250 million) deal with Google, which included non-exclusive licensing of intellectual property rights and the transfer of some research staff.
Despite the headline profit, HTC’s operating loss widened to NT$1.14 billion ($36 million), revealing persistent challenges in its primary operations. The Google deal contributed approximately NT$9.83 per share to earnings.
To revitalize its business, HTC recently announced a partnership with AT&T, Mynd Immersive, and Select Rehabilitation to deploy XR therapy programs in senior care facilities across the United States.
This is HTC’s second major deal with Google, following the 2017 sale of part of its smartphone business for $1.1 billion. Industry analysts remain skeptical about HTC’s turnaround prospects, noting that despite March revenue increasing 68% year-over-year, the company has recorded six straight years of annual losses.
