HTC keeps bleeding serious money, desperately halts financial projections

For a moment there, it seemed HTC was close to getting out of the woods in H2 2014, following a few stable financial quarters. The Taiwanese device manufacturer couldn’t turn much of a profit, but it interrupted a dreadful period of heavy losses, a semi-encouraging status quo which also kicked off this year for the One M8 designers.

On the back of a disappointingly familiar M9 however, as well as false starts in the wearable and virtual reality segments, Q2 2015 saw HTC plunge in the red again. There was clearly nothing to straighten out the flubs in Q3, and so, at least until (if?) the One A9 makes it, and the O2 debuts, the erstwhile cash cow shall remain doomed.

Things are currently so bad that CEO Cher Wang adopted a “desperate measure signaling desperate times”, according to TechCrunch, which got CFO Chialin Chang on record as saying refusal to officially issue financial guidance going forward is due to “the dynamic nature of this business year.”

HTC financial graphs

Bottom line, HTC doesn’t want to predict how much further its business might fall in Q4 2015, perhaps hoping to surprise investors with the fruits of A9’s “critical acclaim.” Leaving forecasts entirely to professional market analysts sounds risky, as stock prices have been known to drop on rumors, but it’s a gamble HTC is willing to take.

After all, the tech giant has followed up on every cost-cutting measure in the book, and yet the $660 million Q3 revenue yielded a hefty $139 million net loss. That’s significantly lower than the previous deficit, but by no means a promising number.

Source: HTC
Via: TechCrunch

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About The Author
Adrian Diaconescu
Adrian has had an insatiable passion for writing since he was in school and found himself writing philosophical essays about the meaning of life and the differences between light and dark beer. Later, he realized this was pretty much his only marketable skill, so he first created a personal blog (in Romanian) and then discovered his true calling, which is writing about all things tech (in English).