There seems to be no end of bad time for troubled Taiwanese mobile giant HTC Corp. (TPE:2498). An unaudited financial result of Q3, 2013 reveals that the company has recorded loss of $101.3 million on $1.6 billion revenue. This is the first time in the history when HTC has posted operating loss and even failed to reach close to breaking even.
Surprisingly, the disappointing performance continued despite strong sales of HTC One in Q3, 2013. In Q2, 2013 company’s total revenue reached to $2.35 billion with a net income of $42 million. A 35% Q-O-Q decline in revenues also attracted negative earning per share of $0.12.
This is going to hurt company’s future expansion plans and after Microsoft-Nokia acquisition deal the going gets tough further for HTC. The company has tried his luck with Android and Windows Phone 8 both and, unfortunately, it failed to replicate success of Samsung with any of its devices. On the other hand, Apple focused approach to developing markets could open fuel up the competition and in a “Samsung-Android”, “Microsoft-Nokia” and “Apple-iOS” scenario, HTC is apparently looking left alone.
For our regional readers below is the official PR release from company:
- HTC RELEASES UNAUDITED RESULTS FOR 3Q 2013
- Date of occurrence of the event:2013/10/04
- Company name:HTC Corporation
- Relationship to the Company (please enter “head office” or ”subsidiaries”):Head Office
- Reciprocal shareholding ratios:N/A
- Cause of occurrence: Taoyuan, Taiwan – October 4, 2013 – HTC Corporation (TWSE: 2498), a global leader in mobile innovation and design, today announces unaudited consolidated results for 3Q 2013. For the third quarter of 2013, total revenues reached NT$47.05 billion. Unaudited operating loss was NT$3.50 billion, net loss before tax was NT$2.97 billion, net loss after tax was NT$2.97 billion, and unaudited earnings per share after tax were -NT$3.58 based on 830,403 thousand weighted average number of shares.
- Any other matters that need to be specified:None