HTC Misses Q4 Revenue Guidance on Inventory Cut-Backs by Customers

Taiwan based mobile phone manufacturer, High Tech Computer (HTC) has posted revenues for January of NT$10.01 billion (US$297 million) - down 16.8% on the previous year, due mainly to the local Lunar New Year holiday.

For the fourth quarter, the firm reported revenues of NT$47.4 billion (US$1.4 billion), a rise of 21.4% on the previous year - but below earlier guidance for NT$48 billion. The company said that the shortfall was caused by clients' inventory adjustment in December.

Annual revenue reached NT$152.6 billion (US$4.5 billion), representing a 28.7% YoY growth rate. The non ODM business YoY growth was over 40%.

The global economic weakened rapidly since the 4th Q resulting low business visibility. The channels including operators and distributors are undertaking aggressive inventory trim down. This situation will carry into the 1st Q affecting the overall handset shipment including the smart phone segment. The company aims to preserve margins at the 30% mark during the first quarter, but made no comment about the longer timeframe.

The 1st Q revenue is expected to be around NT$33 billion (US$981 million), a low-single digit YOY growth rate.

The company confirmed that a "few products" will be introduced in the Mobile World Congress in Barcelona in mid Feb.

Posted to the site on 6th February 2009