HTC lost another $150 million during Q1, with ‘good momentum’ anticipated next

You have to hand it to HTC, as no matter how tough the going gets, its optimism appears to remain intact. Similarly, the company isn’t afraid to make bold bets on redesigned flagship phones and unripe technologies, even after four consecutive quarters of massive operating loss.

Granted, the manufacturers of the “critically acclaimed” Vive VR headset, UA Healthbox connected fitness system, HTC 10 and new Desire-series handhelds stop short of anticipating Q2 revenue growth.

But “good momentum over the year” is mentioned in the Taiwanese OEM’s latest financial report, making stockholders think twice before liquidating their assets, despite net loss after tax of NT$2.6 billion between January and March 2016, equating to NT$3.16 (10 US cents) per share.

HTC’s quarterly revenue of course declined both sequentially and year-on-year, to just NT$14.8 billion (US$460 million). That represents an even weaker return than 2015’s record Q3 low of NT$21.4B, and it’s about three times worse than the Q1 2015 score of NT$41.5B.

This is due to customer indifference, as well as ongoing process streamlining and resource optimization efforts, with HTC looking to “develop products in the most effective way.” In other words, less diversity, a more compact device portfolio, and superior competitiveness from each and every new model.

Unfortunately, the strategy isn’t paying off yet, yielding an operating loss of NT$4.8 billion during the year-opening 90-day timeframe, with an operating margin of -32.4 percent. So, yeah, HTC spent around $150 million US more than it earned this past quarter, while a year ago, it essentially managed to break even. Oh, and in case you’re wondering, both marketing and research expenses were trimmed between the beginning of 2015 and 2016.

That doesn’t sound very promising, regardless of how the Vive could be selling like hotcakes as we speak.

Source: HTC
Via: Engadget

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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).