Tags: Slump | Smartphone | Maker | HTC

Slump Continues at Smartphone Maker HTC

Sunday, 05 Jan 2014 12:32 PM

HTC Corp. posted net income that missed analyst estimates for a fourth consecutive quarter as a continued decline in sales dragged down earnings at the Taiwanese smartphone maker.

Fourth-quarter net income was NT$310 million ($10 million), the Taoyuan, Taiwan-based company said in a statement Sunday, missing the NT$694 million average of 20 analysts’ estimates compiled by Bloomberg. That was despite a boost from the sale of its remaining stake in Beats Electronics LLC. Operating loss of NT$1.56 billion was narrower than the NT$1.72 billion loss average of estimates.

HTC’s release of its largest phone to date, called One Max, failed to halt a nine-quarter slide in sales even after signing Hollywood star Robert Downey Jr. to promote the brand and commencing sales of 4G handsets through China Mobile Ltd. Profit from the sale of its 24.84 percent stake in Beats helped HTC avoid its second loss on record.

HTC’s net income has met expectations only once in the past two years, while sales have lagged behind analyst estimates for almost three years, according to data compiled by Bloomberg.

Revenue for the quarter fell to NT$42.9 billion, compared with the NT$43 billion average of analyst estimates and the company’s own NT$40 billion to NT$45 billion forecast given on Nov. 5. The fourth-quarter earnings means HTC posted its first annual loss in 2013, after reporting its first quarterly loss of NT$2.97 billion in the the three months to Sept. 30, according to Bloomberg calculations.

Sunday Announcement

The earnings announcement was made on a Sunday afternoon, outside normal Taiwan business hours, and it was the second consecutive quarter that HTC posted its financial results at an unscheduled time.

The company’s public relations and investor relations officials contacted yesterday declined to comment on the results. Chief Financial Officer Chang Chialin didn’t immediately respond to e-mailed questions.

Chang, who joined the company in 2012, last month was appointed to the concurrent role of global head of sales as the company looks to develop new distribution channels to drive revenue.

HTC in September said it will sell its remaining stake in Beats for $265 million, booking a $85 million pretax profit from the transaction. Beats will also repay a $150 million loan with interest, it said at the time.

One Max, released in October, became HTC’s largest handset, with a 5.9-inch (15-centimeter) screen, fingerprint sensor and HTC Zoe video highlights function. The device was the company’s only major release for the quarter, with updated versions of its Desire series also going on sale.

© Copyright 2017 Bloomberg News. All rights reserved.

 
1Like our page
2Share
Companies
HTC Corp. posted net income that missed analyst estimates for a fourth consecutive quarter as a continued decline in sales dragged down earnings at the Taiwanese smartphone maker.
Slump,Smartphone,Maker,HTC
417
2014-32-05
Sunday, 05 Jan 2014 12:32 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved