Taiwanese smartphone maker HTC Corp (宏達電) yesterday reported a net loss of NT$8.03 billion (US$257.8 million) for last quarter, largely in line with the company’s revised financial forecast.
That translated to a loss of NT$9.7 per share, hitting the low end of the company’s forecast, which ranged from NT$9.7 to NT$9.94 per share. HTC attributed the loss to a one-off NT$2.9 billion impairment for idled assets and some prepaid expenses.
The company posted a net profit of NT$2.42 billion, or NT$2.74 per share, in the same period last year, it said in a filing to the Taiwan Stock Exchange.
HTC expected its core business to post an operating loss of NT$5.14 billion for last quarter, compared with an operating income of NT$2.25 billion in the same period last year, according to the forecast it released early last month.
Yuanta Securities Investment Consulting Co (元大投顧) said that HTC’s financial results came as no surprise. However, the firm’s quarterly revenue of NT$32.99 billion fell short of the brokerage’s estimate of NT$35.87 billion.
HTC’s quarterly sales plummeted 49.27 percent from NT$60.4 billion last year and by 20.54 percent from the previous quarter’s NT$41.52 billion. The figure slightly surpassed the firm’s revised guidance of between NT$33 billion and NT$36 billion.
SinoPac Securities Investment Service Co (永豐投顧) said it expects HTC’s sales this quarter to fall further, as there are no significant growth drivers expected in the coming months.
“The outlook for this quarter is pessimistic, given that HTC does not have any new smartphone launches scheduled to boost revenue,” a SinoPac analyst, who declined to be named, told the Taipei Times.
Although HTC chairwoman Cher Wang (王雪紅) told shareholders on June 2 that the company plans to introduce a “hero” product in October, a Yuanta analyst, who also declined to be named, said: “I really do not think the next hero product will help, as channels are losing confidence in HTC.”
The analyst said that he expects HTC’s share price to be under pressure until its virtual reality headset hits the market.
Commenting on HTC’s recent strategic initiatives in the Indian market, including plans to produce entry-level and mid-range smartphones and sponsor an Indian Super League soccer team, the Yuanta analyst said the Indian market would be of little help to HTC in turning things around, because the market is driven by low-end smartphones with little margin.
The SinoPac analyst agreed, saying that low-end smartphones are not as profitable as high-end ones, so the Indian market would not help HTC much.
HTC shares were unchanged at NT$73.80 in Taipei trading yesterday, outpacing the TAIEX, which slid 1.09 percent.
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