HTC continues to struggle financially in latest report for 3rd quarter

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HTC’s financial woes have been a recurring theme for the company for several years now after falling from its perch as the leader in Android smartphone production. The current year has been marked by the release of the generally well-received HTC 10, the HTC VIVE, and perhaps most importantly, HTC’s position as manufacturer for the Pixel phones “made by” Google. At least for the third quarter though, these accomplishments have not had a major impact on the financial results for HTC.

In their press release announcing third quarter results, HTC notes their quarterly revenue was NT$22.2 billion ($703M USD), an amount the company described as “strong.” This was supported by 18% growth from the previous quarter and was an improvement of 4% compared to the prior-year period. When combined with cost-cutting steps, HTC experienced a net operating loss of NT$2.0 billion ($63M USD) for the quarter on an operating margin of -9.0%.

HTC Chairwoman and CEO Cher Wang was optimistic, noting the company was “delighted at how our flagship products, the HTC 10 smartphone and the HTC VIVE virtual reality system, have been embraced by the market.” While the direction is positive, at the end of the day HTC is still losing money on a consistent basis. Sales of the Google Pixel phones may change that, but the impact will not be seen until HTC reports on the results of the full year including the fourth quarter when those devices started to sell.

source: HTC


About the Author: Jeff Causey

Raised in North Carolina, Jeff Causey is a licensed CPA in North Carolina and possesses the CAPM credential from PMI. Jeff's past Android devices include an HTC EVO, a Samsung Note II, and an LG G3 along with a Samsung Galaxy Tablet 10.1. He currently uses a Motorola Moto X Pure Edition and (very rarely) a Nexus 7 (2013). Jeff used to have a pair of Google Glass and a Moto 360 Sport in his stable of gadgets. Unfortunately, his wife and kids have all drunk the Apple Kool-Aid and have i-devices. Life at home often includes demonstrations of the superiority of his Android based devices. In his free time, Jeff is active in his church, a local MINI Cooper car club, and his daughter's soccer club. Jeff is married, has three kids, and a golden retriever.