J
Jeff Causey
Guest
HTC held their quarterly conference call to discuss financial results for the third quarter of 2015. There were no surprises regarding the results as HTC continues to struggle financially with many wondering how long the company can continue to stay in business. For the third quarter, the smartphone manufacturer generated NT$21.4B ($660M USD) in revenues, which is almost half of what they did for the same quarter in 2014. The results are consistent with a downward slide for the company.
Unlike some previous quarters where HTC was able to barely make an operating profit, for the third quarter they experienced a NT$4.9B ($151M USD) loss, which followed a NT$5.1B ($157M USD) loss the previous quarter. This loss came despite HTC saying they had experienced a “significant reduction” in operating expenditures. That shows the impact of the loss of sales volume on the company. The HTC One A9 has since been released as HTC, along with most other manufacturers, start to move more aggressively into the mid-tier market. Investors will be watching to see how that impacts the fourth quarter numbers.
If there were any silver lining to be found, it is that the results ended up at the “higher end” of expectations. That may lead investors to not punish the company quite so severely on the stock markets. However, HTC did announce during their conference call that they were no longer going to issue guidance regarding future performance. That could be due to issues related to the complexity of forecasting new products like the HTC One A9 or it could be due to a lack of confidence in the business. For now though, it appears that HTC will continue to linger in the market.
source: HTC
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