HTC Returns to Profit Despite Sales Decline
Published on: 10th Feb 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
Taiwan's HTC reported its fourth quarter results today and said that revenues fell although it was able to return to quarterly profit. The company posted an underlying operating loss.
HTC saw revenues fall to NT$42.9 billion (USD1.4 billion), from NT$60 billion a year ago. The operating loss came in at NT$1.6 billion, compared to an operating profit of NT$600 million a year earlier.
Gross margin continued to fall, down to 17.8 percent and operating margin was -3.7 percent.
Net profit came in at NT$310 million (USD10.2 million).
"We will continue to stay focused on making the best smartphone and building a compelling mid-range portfolio. Meanwhile, we are going to communicate better with consumers," said Peter Chou, HTC's CEO.
The comment about the mid-range portfolio seems to support previous statements by the CEO that the company will be moving downmarket from its flagship devices and will expand its range of cheaper devices.
The company's results presentation did not go into detail though about handset shipment volumes.