HTC Corp (宏達電), the world’s No. 5 smartphone maker, yesterday reported it made NT$60 billion (US$2.06 billion) of consolidated revenue in the fourth quarter of last year, the lowest level since 2004, with net consolidated profit of NT$1.1 billion and earnings per share (EPS) of NT$1.21.
The Taoyuan-based company’s quarterly consolidated revenue, which was the lowest since 2004, was in accordance with its expectations at an investors’ conference on Oct. 26, and a 40.84 percent decrease compared with NT$101.42 billion during the same period a year ago.
On a quarterly basis, HTC’s consolidated revenue fell by 14 percent last quarter, and its EPS fell by 74.25 percent from NT$4.7 in the third quarter, and up to 90.78 percent from NT$13.13 in the same period last year.
Photo: Pichi Chuang, Reuters
For the whole of last year, the firm’s EPS fell by 72.53 percent from NT$73.32 in 2011 to NT$20.14, the lowest level since 2004 when it posted EPS of NT$14.21.
Last month, HTC posted sales of about NT$21.57 billion, up 1.6 percent month-on-month, but down 18.18 percent year-on-year.
However, the company’s fourth-quarter EPS was higher than its forecast of less than NT$1, mainly because it lent money to Beats Electronics LLC in July last year and charged the company a high interest rate, Jeff Pu (蒲得宇), an equity research analyst at Fubon Securities Co (富邦證券), said by telephone.
“HTC’s sales figures for last quarter were in line with their own forecast,” Pu said.
“The company posted a higher-than-expected EPS mainly because of a stronger euro and additional income from the interest rate it charged Beats,” he added.
HTC forecast sales would fall to a record low level in the last quarter of last year although it would continue to increase spending in marketing to promote brand awareness.
Cheng Kai-ming (鄭開明), an analyst with Horizon Securities (宏遠證券), said that although HTC’s operating margin has hit its record low level, it is expected to bounce back this quarter as it plans to launch a new flagship high-end smartphone model — rumored to be named the “M7” — which is expected to be in strong demand, as well as launching new low-end models in emerging martkets to expand its market share.
Cheng forecast that the firm’s smartphone shipments would increase by 15 percent this quarter, driven by strong demand for its Butterfly model and the upcoming M7 series.
“HTC is expected to regain its market share as it has adopted new product and marketing strategies,” Cheng said by telephone.
“There is a likelihood that HTC could perform well this year if the market reacts positively toward its new products and the brand as a whole. As the penetration rate of high-end smartphones is increasing at a slower pace, implementing the correct strategies for low-end models is also very important because emerging markets have strong demand and can help HTC gain back market share,” he added.
HTC’s shares closed up 0.35 percent at NT$288 in Taipei trading yesterday, outperforming the broader market, which fell 0.65 percent. For the whole of last year, HTC’s shares fell by 39.54 percent.
The Eurovision Song Contest has seen a surge in punter interest at the bookmakers, becoming a major betting event, experts said ahead of last night’s giant glamfest in Basel. “Eurovision has quietly become one of the biggest betting events of the year,” said Tomi Huttunen, senior manager of the Online Computer Finland (OCS) betting and casino platform. Betting sites have long been used to gauge which way voters might be leaning ahead of the world’s biggest televised live music event. However, bookmakers highlight a huge increase in engagement in recent years — and this year in particular. “We’ve already passed 2023’s total activity and
BIG BUCKS: Chairman Wei is expected to receive NT$34.12 million on a proposed NT$5 cash dividend plan, while the National Development Fund would get NT$8.27 billion Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday announced that its board of directors approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand. The funds are to be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with facility systems, TSMC said in a statement. The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94, it said. That surpasses the NT$4.50 dividend for the fourth quarter of last year. TSMC has said that while it is eager
Nvidia Corp CEO Jensen Huang (黃仁勳) today announced that his company has selected "Beitou Shilin" in Taipei for its new Taiwan office, called Nvidia Constellation, putting an end to months of speculation. Industry sources have said that the tech giant has been eyeing the Beitou Shilin Science Park as the site of its new overseas headquarters, and speculated that the new headquarters would be built on two plots of land designated as "T17" and "T18," which span 3.89 hectares in the park. "I think it's time for us to reveal one of the largest products we've ever built," Huang said near the
China yesterday announced anti-dumping duties as high as 74.9 percent on imports of polyoxymethylene (POM) copolymers, a type of engineering plastic, from Taiwan, the US, the EU and Japan. The Chinese Ministry of Commerce’s findings conclude a probe launched in May last year, shortly after the US sharply increased tariffs on Chinese electric vehicles, computer chips and other imports. POM copolymers can partially replace metals such as copper and zinc, and have various applications, including in auto parts, electronics and medical equipment, the Chinese ministry has said. In January, it said initial investigations had determined that dumping was taking place, and implemented preliminary
RSS