HTC reports massive losses in its Q4 results

By: | Published: March 26, 2018 5:19 PM

A flat quarterly revenue of $540 million with a gross margin of -30.8 percent, quarterly operating loss of $330 million with an operating margin of -60.8 percent and quarterly net loss (after tax) of $337 million or $0.41 per share

HTC reports massive losses in its Q4 results

Smartphone maker HTC recently revealed its quarter 4 results and it’s not good at all for the company. A flat quarterly revenue of NT$15.7 billion, $540 million, with a gross margin of -30.8 percent, quarterly operating loss of NT$9.6 billion, $330 million, with an operating margin of -60.8 percent and quarterly net loss (after tax) of NT$9.8 billion, $337 million or $0.41 per share. The VR-Smartphone makers say that the loss was due to market competition, product mix, pricing, and recognized inventory write-downs.

A silver lining was seen on the report with Google acquiring a part of HTC’s hardware business for $1.1 billion, this January. Even though the cash raised by the company was not reflected in the report, it’s expected to give a much needed kickstart to the HTC’s 2018 Q1 report.

The company further added that the Google’s investment will be used for greater investment in emerging technologies stating that “it will be vital across all of our businesses and present significant long-term growth opportunities.”

In its quarterly report it stated that it has also undertaken a strategic review of the business to optimize teams and processes, and bringing the regions under common leadership for greater coordination of the smartphone and virtual reality businesses, as well as enabling greater leverage of our extensive expertise across the group

Standing back up requires a lot of strength, likewise for a business to revive it requires humongous amount of investment. The exact definition of this long term growth for HTC is getting back on the smartphone market, which is currently being dominated by Chinese smartphone makers, and tap its VR headset market to take user experience beyond a traditional screen, which has failed in the past. It looks like a long-term plan for HTC’s VR, maybe be 5 years down the line.  

It further, recently launched its Vive Focus –  a standalone Virtual Reality system in China, and is expected to launch globally by the end of this year. The Vive pro premium VR system bagged 29 awards at the Consumer Electronic Show in Las Vegas this year including ‘Best in Show award’.

In its release HTC stated, “With a clear product focus and a series of measures in place to enable stronger execution, HTC is positioned well for another strong year of innovation at the forefront of its markets.

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