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HTC sees net loss narrowing in third quarter

HTC sees net loss narrowing in third quarter

Taipei, Aug. 6 (CNA) Taiwanese smartphone maker HTC Corp. forecast on Thursday that its net loss will narrow in the current quarter thanks to company-wide measures to reduce costs.
The Taoyuan-based company said its July-September revenue is expected to be in the range of NT$19 billion to NT$22 billion (US$600 million to US$695 million), a new low in 10 years since it posted NT$15.44 billion in the second quarter of 2005.
Gross profit margin is expected to be 19 percent to 19.5 percent in the third quarter, and losses per share are expected to be in the range of NT$5.85 to NT$5.51.
In the second quarter of the year, HTC reported an operating loss of NT$5.1 billion and a one-time charge of NT$2.9 billion for idled assets and prepaid expenses, translating into losses per share of NT$9.7.
"Weaker than expected demand at the high end, consistent with the Android market, along with weak sales in China, lead to a year-on-year fall in the second quarter. Meanwhile, year-on-year shipment volume increases were seen across select key emerging markets," HTC said in a statement.
"HTC has begun to implement company-wide efficiency measures to reduce operating costs across the organization and ensure resources are appropriately allocated to future growth," the handset maker said.
Also on Thursday, HTC reported consolidated revenue of NT$7.41 billion for July, the lowest in the past 17 months.
HTC shares closed down 1.2 percent at NT$70 on the Taiwan Stock Exchange, compared with a 1.09 percent drop in the weighted index. (By Jeffrey Wu)


Updated : 2021-09-24 21:25 GMT+08:00