J
Jeff Causey
Guest
HTC announced their fourth quarter financial results for 2015 and the financial straits they find themselves in continued as the year closed out. For the quarter, HTC reported revenues of NT$25.7 billion ($768 million USD) and a gross margin of 13.9%. After expenses are considered, HTC had an operating loss of NT$4.1 billion ($122 million USD) with an operating margin of negative 16.1%. Considering the fourth quarter is usually a strong one for companies thanks to holiday sales, HTC’s loss for the quarter is a troubling sign for the smartphone manufacturer.
For the fourth quarter, HTC’s revenues increased from the third quarter’s $660 million while the operating loss of $122 million was less than the $151 million loss HTC experienced in the third quarter. HTC chair Cher Wang attributed the positive change to factors like the “good momentum” of the company’s Desire line of devices and the “well received” reception by the market for the HTC One A9.
Looking ahead, HTC is hoping to capitalize on a couple major initiatives. One of these is a new partnership with Under Armour on the new UA Healthbox fitness system that launched at CES 2016. The other is the HTC Vive virtual reality device. Wang feels so confident about HTC’s virtual reality device that she is apparently planning to spin off that portion of the company into a separate entity. One of the benefits of such a move would be the ability for that division to survive a collapse of the smartphone portion of HTC’s business.
source: HTC
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