HTC Q4 Loss Triples, Company Blames Market Competition

Taiwanese smartphone maker HTC posted a net loss of 9.8 NTD billion (New Taiwan Dollar) in Q4 ended 31 December 2017 from 3.1 NTD billion a year ago, showing a three fold dip. The company blamed various market forces for this financial disturbances.

“Quarterly loss due to market competition, product mix, pricing and recognized inventory write-downs,” HTC said in a statement. The company said as its $1.1 billion asset sales to Google was completed during end of January the related sales numbers were not added to the Q4 results.

“HTC successfully completed the US$1.1 billion business cooperation agreement with Google at the end of January, and the gain related to the transaction will be recognized in Q1’18,” HTC added.

On gross revenue terms, HTC saw a dip of over 29% in Q4 2017. It posted revenues of 15.7 TND billion in Q4 2017 as against 22.2 NTD billion a year ago.

However, the company has reduced its operating expenses to 4.7 TND billion in the reported period from 5.9 NTD billion during the same period last year. In operating expenses the company has done some cost cutting in sales and marketing as well as in general administration. But the firm that is known for its R&D capabilities has retained its expenses on this activities. Its expense on R&D in 2016 was 2.7 NTD billion and in 2017 the firm has spent 2.6 NTD billion on the same.

Going forward, HTC said, it has reviewed its business to optimize teams and processes. Regional markets are brought under single leadership which, HTC feels, would build greater coordination of its smartphone and virtual reality businesses.

On VR side, the company said there has been significant innovation over this period. It has launched the VIVE Focus standalone VR system in China, and the VIVE Pro premium PC VR system in January at the Consumer Electronics Show (CES) in Las Vegas in January 2018.

With a clear product focus and a series of measures in place to enable stronger execution, HTC believes it is positioned well for another strong year of innovation at the forefront of its markets

Also Read

Leave a Reply

 
%d bloggers like this: