Things haven’t been going smoothly for HTC and the company has been under a lot of pressure to plug its losses and turn a profit, unfortunately it wasn’t able to do that by the end of Q2 2015. HTC has announced its financial results for the quarter with a $161 million operating loss and a net loss of $252 million on revenue of $1.04 billion. Clearly there’s some work to be done.

Q2 2015 was the first full quarter of availability for the HTC One M9 but the company’s flagship device hasn’t been able to turn its fortunes around, HTC’s guidance for Q3 2015 predicts declining revenues coming in at $600-$695 million.

Chialin Chang, HTC CFO, has detailed three major areas which the company needs to focus on in the next quarter in order to return to profitability. The first requires further cost cutting which entails laying off staff as well as further outsourcing parts of its manufacturing process.

The company also aims to reignite interest for its devices in the market by launching more “trendy” handsets by the end of this year, HTC will address “premium segments” with these new handsets but they won’t be flagship devices. They’re likely going to be new Desire phones that HTC calls “premium mid-range” handsets.

HTC also plans on capitalizing on market segments like virtual reality where it claims to have a “first move advantage,” but considering the fact that the VR market hasn’t completely evolved yet it’s unlikely to substantially prop up HTC’s numbers.

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