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HTC expects losses for Q4, but smaller than Q3

HTC expects losses for Q4, but smaller than Q3

Taipei, Oct. 31 (CNA) HTC Corp. (???), a Taiwan-based smartphone vendor, expects the company will not swing to profit in the fourth quarter of this year because it is still facing pressing challenges in the competitive handset market. In an investor conference held Friday, Chang Chia-lin (???), chief financial officer and president of global sales at HTC, gave the prediction, but said the losses for the October-December period could be smaller than that incurred in the previous quarter due to signs that the company's operations are improving. He pointed out the company's losses are declining. In the third quarter, HTC incurred NT$4.5 billion (US$137 million) in net loss, compared with NT$8 billion recorded in the second quarter. Reflecting this trend, the smartphone vendor's loss per share for the third quarter stood at NT$5.41, compared with NT$9.7 seen in the second quarter. In the first quarter, HTC recorded NT$0.43 in earnings per share. The smartphone vendor said that while global demand for high-end models has been weakening, HTC has continued to make a lot of efforts to improve its operations in a bid to lower operating losses and eventually return to profit. On a quarterly basis, in the July-September period, HTC posted NT$4.9 billion in operating loss, compared with NT$5.1 billion in the previous quarter, but its operating margin stood at minus 23.1 percent, worsening from the minus 15.6 percent seen in the second quarter. The third quarter results, however, came within the company's earlier expectations. Judging from the results in the third quarter, Chang said that they show HTC has been making progress in strengthening its bottom line in a global smartphone market where competition has been on the rise. Chang's forecast echoed the comments made by HTC Chairwoman Cher Wang (???) earlier this year that the company is expected to fare better quarter by quarter this year. However, HTC did not give exact guidance for the fourth quarter as it had done in previous investor conferences. The company used to give indicative ranges for its consolidated sales, earnings per share, and profit margins at such meetings. As for the first nine months of this year, HTC incurred NT$14.68 in loss per share. As a result, market analysts said that it is unlikely for the smartphone brand to report a profit for the entire year. Looking ahead, Chang said that HTC will likely benefit from the launch of its latest mid-range HTC One A9 model. HTC kicked off a three-day online preorder sales campaign for the new phone in Taiwan last week and sold out the first batch of 2,000 in two days. HTC is scheduled to start global sales for the HTC One A9 in November. Chang said that based on consumers' positive reaction to the new product, he is confident that HTC's shipment growth momentum will pick up in the fourth quarter. The market also expects HTC will find additional sales sources after its virtual reality (VR) headset HTC Vive goes on sale. International business wires have reported that the VR gadget could hit the market in December. (By Esme Jiang and Frances Huang)


Updated : 2021-09-17 02:37 GMT+08:00