HTCs Fourth Quarter Results Fall Below Expectations

HTC hasn’t had a good year, despite releasing a number of products in 2013 that received a lot of praise. It happens to be in a precarious financial situation, with the company reporting its first ever quarterly loss in the previous quarter. It narrowly missed reporting a similar loss in the fourth quarter, however revenues and profits have fallen below the Street’s expectations. HTC has lost almost three-quarter of its market value in the last two years and its on for another rough year if its 2014 lineup, whenever its revealed, doesn’t manage to turn things around.

In its fourth quarter results HTC reported revenue of NT$42.9 billion which translate to roughly $1.4 billion, managing a net profit of only NT$310 million or roughly $10.3 million. It may seem insignificant to the NT$2.97 billion or $99.9 million net loss reported in the previous quarter. Even though it has reported a profit, this doesn’t signal the return of HTC. Reuters says that a one-time profit of $85 million, received after unloading its shares in Beats Audio, has been factored into fourth quarter calculations, which evidently did little to spread green on its balance sheets. Seems like the rather expensive ad campaign it ran, featuring Robert Downey Jr., has had little impact on its fortunes. Lets wait and see what 2014 has in store for the ailing Taiwanese manufacturer.

This article was filed in Homepage > Cellphones and was tagged with HTC.
Like us, and get the best stories

User Comments