Thu, Jun 07, 2012 - Page 12 News List

HTC cuts its sales forecast for a second time in six months

By George Liao  /  Staff reporter

HTC Corp (宏達電) yesterday adjusted down its quarterly guidance for sales for the second time since November last year, as the company struggles with falling sales in Europe and delayed shipments to the US.

The company said in a statement that it now forecast NT$91 billion (US$3.04 billion) in revenue for the April-to-June quarter, 13.3 percent less than the NT$105 billion for the quarter it forecast last month.

HTC also forecast a 27 percent gross margin and a 9 percent operating margin in the second quarter, compared with 27 percent and 11 percent it forecast previously.

The company's downward adjustment came after it reported NT$30 billion in consolidated revenue for last month, down from NT$31.03 billion the previous month, and a combined revenue of NT$128.8 billion for the first five months, down 29.81 percent year-on-year.

“The revised revenue is due to lower than anticipated sales in Europe and delayed shipments following the launch of certain products in the US,” HTC said.

The company said the revision included a one-time charge of NT$2.6 billion to facilitate the clearance of channel inventory for certain products shipped last year.

“Without the charge, revenue, gross margin and operating margin would have been NT$93.6 billion, 29 percent and 11.2 percent respectively,” it said.

In November last year, HTC slashed its sales forecast for the October-to-December quarter to NT$104 billion, from its previous estimated range of NT$125 billion to NT$135 billion.

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