(Telecompaper) HTC reported a bigger drop than expected in first-quarter results. As earlier reported, revenues fell to TWD 42.8 billion from TWD 67.8 billion a year earlier, missing the smartphone maker's guidance of TWD 50-60 billion. The gross margin at 20.3 percent also fell short of the outlook of 21-23 percent, and operating profit was barely breakeven, at TWD 0.04 billion or 0.1 percent of sales, versus an outlook of 0.5-1.0 percent. Net profit plunged to TWD 0.09 billion from TWD 4.5 billion a year earlier. Following the launch of its flagship One smartphone last month, HTC expects second-quarter revenues to improve to around TWD 70 billion and the gross margin to increase to 22-24 percent. Operating profit will remain weak, at 1-3 percent of revenues.