Sat, Aug 12, 2017 - Page 12 News List

HTC Corp reports losses for ninth quarter in row

NEW STRATEGY:The company said it reduced its operating expenses thanks to a streamlining process and realignment of resources across the firm

Staff writer

HTC Corp (宏達電) yesterday said it remained in the red last quarter, although revenue was on the rise thanks to sales of its latest HTC U11 flagship handset.

The company reported net losses of NT$1.95 billion (US$64.2 million) for the April-to-June quarter, the ninth straight unprofitable quarter, translating to losses of NT$2.37 per share.

In the previous quarter, the company posted net losses of NT$2.03 billion, or NT$2.47 per share.

Revenue came in at NT$16.1 billion last quarter, 11 percent higher than NT$14.5 billion in the prior quarter, as the company launched its U11 smartphone in May, HTC said in a statement.

However, last quarter’s figure remained lower than NT$18.9 billion for the same period last year, company data showed.

Gross margin fell to 13.7 percent from 16.3 percent in the first quarter, but it was still an improvement from 11.4 percent a year earlier, the company said.

Thanks to continued streamlining of processes and realignment of resources across the company, HTC said it saw operating expenses fall to NT$4.4 billion from NT$4.7 billion three months ago and NT$6.4 billion a year earlier.

Operating losses narrowed to NT$2.2 billion last quarter from NT$2.4 billion the previous quarter and NT$4.2 billion a year earlier, company data showed.

HTC did not provide sales guidance or an earnings outlook in the statement, although it reiterated the strength of its U11 flagship handset and said the ecosystem for its Vive virtual reality headset has gained support from industry players such as Google, Intel Corp and Apple Inc.

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