HTC Corp (宏達電) yesterday posted a net loss of NT$1.69 billion (US$56.48 million) for last quarter, marking the company’s eighth consecutive quarter in the red.
That translated into losses per share of NT$2.05, the company’s smallest loss in eight quarters.
Posting its first quarterly loss in the third quarter of 2013, the Taoyuan-based firm continued to report losses from the second quarter of 2015, before hitting an all-time low of NT$9.8 billion in losses in the fourth quarter of 2017.
HTC’s losses were briefly alleviated when it booked a one-off gain after selling its Pixel smartphone unit to Alphabet Inc’s Google for US$1.1 billion in the first quarter of 2018.
However, the company later resumed its downward spiral, with losses widening to NT$4.4 billion in the fourth quarter of the same year.
Nevertheless, the smartphone maker has seen improvements in profitability as it builds up its virtual reality (VR) business, with operating margin climbing to 26.25 percent last quarter compared with 14.66 percent in the first quarter of 2018.
Even though the company last quarter launched a range of VR headsets — the Vive Cosmos series, aimed at average consumers and professional gamers, while offering a VR conference platform for enterprise clients — overall revenue fell 54.83 percent year-on-year to NT$1.33 billion during the period as mobile phone sales continued to plummet.
Having previously shifted its focus to niche sectors with the release of blockchain mobile phones, HTC is rumored to be launching a 5G smartphone by the end of the year.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
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