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.