Mon, Aug 12, 2013 - Page 14 News List

ANALYSIS: HTC needs to sharpen up business strategies: experts

By Helen Ku  /  Staff reporter

For this quarter, HTC forecast its sales to decline by between 14.3 percent and 28.6 percent to a range of between NT$50 billion and NT$60 billion, from the NT$70 billion it generated last quarter.

Gross margin this quarter is forecast to drop to between 18 percent and 21 percent from 23.2 percent during the April-to-June period, while operating margin could fall to between zero percent and minus-8 percent from 1.5 percent last quarter, the company said.

Wu said HTC could report net losses per share of NT$2.5 this quarter, with full-year earnings per share falling into red this year for the first time after becoming a listed company.

The company’s EPS were NT$0.1 and NT$1.5 during the first and second quarter of the year respectively.

However, CLSA Asia-Pacific Markets analyst Cheng Chao-kang (鄭兆剛) said he was particularly concerned by HTC management’s product strategies, but saw the company’s board appear “in no hurry to reshuffle management.”

While Cheng did not say that he felt a management reshuffle was necessary, he said HTC’s employee turnover rate has become another issue it needs to resolve after a total of 12 executives left the company in the past few months for a variety of reasons.

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