HTC posted its first losses last quarter, even after the good performance of its flagship device – the One, and was expected to post huge losses this quarter too. Apparently, the Beats buy back seems to have provided some much needed cash for HTC, which has translated directly into small net profits for the company, after taxes. Today, HTC has posted its unaudited Q4 2013 results, with the numbers coming in at NT$42.89 billion(1.43 billion USD) of revenue with operating losses of NT$ 1.56 billion(52 million USD). However, as mentioned earlier, the company made back some of the money it lost on Beats earlier, with 31 million NT$(10.3 million USD) in net profits. These are currently “unaudited” and are usually published as guidance to shareholders before the real deal that will have the entire data.
This is what HTC has posted in its investors’ page –
1.Date of occurrence of the event:2014/01/05
2.Company name: HTC Corporation
3.Relationship to the Company (please enter ”head office” or
”subsidiaries”):Head Office
4.Reciprocal shareholding ratios: N/A
5.Name of the reporting media: N/A
6.Content of the report: N/A
7.Cause of occurrence:
Taoyuan, Taiwan – January 5, 2014 – HTC Corporation (TWSE: 2498), a
global leader in mobile innovation and design, today announces unaudited
consolidated results for 4Q 2013. For the fourth quarter of 2013, total
revenues reached NT$42.89 billion. Unaudited operating loss was NT$1.56
billion, net profit before tax was NT$1.15 billion, net profit after tax
was NT$0.31 billion, and unaudited earnings per share after tax were
NT$0.38 based on 823,541 thousand weighted average number of shares.
8.Countermeasures:None
9.Any other matters that need to be specified: None
The company, as you can see from the results above, is still struggling to regain the foothold it earlier had. The portfolio is partly to blame, as mid range devices from the company have demanded typically high prices hence driving away potential consumers. There are a lot of factors that affect the pricing but from the Indian scene, it seems to be one of the major roadblocks. The portfolio too has seen lesser number of devices spread between the price spectrum unlike its one closest competitor Samsung, which might explain the lack of sales. We hope to see the company regain its foothold in 2014 as the successor to the One is slated to be shown off on or before the Mobile World Congress event. Lets see what HTC has up its sleeve this time.
Source HTC