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Sale of Beats Audio stake helps HTC turn a fourth quarter operating loss into a net profit

Posted: , by Alan F.

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Sale of Beats Audio stake helps HTC turn a fourth quarter operating loss into a net profit
Prior to its third quarter earnings report last year, HTC had never reported a quarterly operating loss. But last year, the Taiwan based manufacturer spilled red ink in the amount of $101.3 billion USD on an operating basis. On Sunday morning in Taiwan, HTC continued to spill red ink. The good news is that thanks to the sale of its stake in Beats Audio, the company reported a net profit.

On an operating basis, the company lost a much improved $1.56 billion NT ($52.1 million USD) for the latest period. Throw in the $265 million USD that HTC received from Beats Audio when it sold back to the company the 25% ownership it had, and the frown is turned upside down. The operating loss becomes a $310 million NT profit ($10.4 million USD) and the company ends up booking an $85 million pre-tax profit on the sale. Both the operating loss and the net profit figures were below the consensus numbers culled from 19 analysts, which called for an operating loss of $1.72 billion NT ($57.4 million USD) and a net profit of $694 million NT ($23.2 million USD).
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HTC now has reported its last two earnings report outside of normal business hours in Taiwan, hoping to soften the blow to the company's stock when investors get wind of the report. The handset manufacturer also has suffered through nine consecutive quarters of lower revenue despite launching the huge 5.9 inch HTC One max phablet during the period.

HTC had some high hopes for the quarter. It had hoped that the HTC One max would create a stir. But the phablet failed to get any traction against competitors like the Samsung Galaxy Note 3 and the Nokia Lumia 1520. The company is working on a sequel to the HTC One, code named the HTC M8. The latest speculation has the device named the HTC One+, carrying a 5 inch screen with 1080 x 1920 resolution, and powered by a Snapdragon 805 CPU.

source: Bloomberg

22 Comments
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posted on 05 Jan 2014, 04:30 5

1. ocilfa (Posts: 329; Member since: 03 Aug 2012)


Beats...gross.

posted on 05 Jan 2014, 04:41

2. Shatter (Posts: 1956; Member since: 29 May 2013)


The Creative Live! By creative + fostex is the best pair of headphones for the $. Look it up, its basically an improved denon 1001.

I have a pair of them and a $300 pair of ultrasone pro 900s and a adequate amp + dac and these $70 headphones are better for gaming + movies and they win at mids but the bass can't even touch the ultrasones.

posted on 05 Jan 2014, 08:51 2

10. SleepingOz (unregistered)


Never knew you were an audiophile..
But imho and well, lots of audiophiles, the best bang for bucks pair of cans right now, is the ATH M50.

posted on 05 Jan 2014, 10:47 1

13. greathero1 (Posts: 458; Member since: 13 Jun 2008)


So true but they are not the best looker in the crowd. That's my only problem with them. I just think they look hideous.

posted on 05 Jan 2014, 10:52 1

15. Extradite (banned) (Posts: 316; Member since: 30 Dec 2013)


They are way overpriced and lack clarity in separating every instruments playing in the background. You can't even pinpoint what kind of are playing, even mids are blury, and Bass is disturbance. Beats are pure hype products like Apple iPhones. A midrange product with ahigh end margin price to pay.

posted on 05 Jan 2014, 11:06 2

17. greathero1 (Posts: 458; Member since: 13 Jun 2008)


1st gen Beats headphones definitely were bass heavy but they have come a long way with some of their newer products. With that said there are definitely other "better values" in headphones that one can purchase. As for the iPhone comment, hype product? Not really, it is a great phone that offers a great user experience with a great eco system. That's usually enough to gain customers and keep them. While it might not be my preference or yours, it definitely has it's appeal to many users. That's not hype, that's doing things right.

posted on 05 Jan 2014, 11:16

18. Extradite (banned) (Posts: 316; Member since: 30 Dec 2013)


I have the iP5s, finally a Notification. Alot of feautres are missing. If all those were available like what it has on Android, a great device surely.

True as long as it gets your A-Z done, what more could users want, except for users that prefer more.

posted on 05 Jan 2014, 12:04

21. trustory (Posts: 104; Member since: 23 Jan 2013)


I've heard many audiophile headphones (vmoda m80, ath m50, m100, momentum, cal) and i still prefer my beats studios. The bass is incredible, however the m100 does have more or less the same bass and better mids and highs but the difference isn't significant enough for me to buy it plus it doesnt look as cool

posted on 05 Jan 2014, 10:48

14. Extradite (banned) (Posts: 316; Member since: 30 Dec 2013)


I own a pair of those, but prefer the Sony inEar 16.5MM drives, with superb treble clarity, and deep surgical bass that reaches 13Htz

posted on 05 Jan 2014, 09:18 2

11. AppleHateBoy (unregistered)


I think it was a good riddance for HTC.

posted on 05 Jan 2014, 10:45

12. greathero1 (Posts: 458; Member since: 13 Jun 2008)


Good riddance lol? I have yet to hear any phone with speakers better than Boom Sound. The integrated Beats did wonders for the sound of my phone and no other phone that I have owned or listen to have come close to reproducing the sound quality from the HTC One.

posted on 05 Jan 2014, 12:03

20. trustory (Posts: 104; Member since: 23 Jan 2013)


I've heard many audiophile headphones (vmoda m80, ath m50, m100, momentum, cal) and i still prefer my beats studios. The bass is incredible, however the m100 does have more or less the same bass and better mids and highs but the difference isn't significant enough for me to buy it plus it doesnt look as cool

posted on 05 Jan 2014, 04:45 5

3. nokia12 (Posts: 258; Member since: 19 Nov 2013)


"the Taiwan
based manufacturer spilled red ink in the
amount of $101.3 billion USD"

billion oh my... :o

posted on 05 Jan 2014, 15:08

22. TheMan (Posts: 369; Member since: 21 Sep 2012)


It's a typo. That should be million, of course.

posted on 05 Jan 2014, 04:46 3

4. mr.techdude (Posts: 533; Member since: 19 Nov 2012)


I'm a huge HTC fan but when I saw them partner with beats I was really disappointed, its not a hardware thing its just a software equalizer with a brand name. I noticed a difference on HTC one speakers when I turned them off, trust me its just a software equalizer. Good HTC

posted on 05 Jan 2014, 04:55 1

8. kaikuheadhunterz (Posts: 683; Member since: 18 Jul 2013)


Had a HTC One V once. Beats Audio exaggerates the bass too much to the point that I can barely hear the mid and high frequencies, so I turn it off all the time

posted on 05 Jan 2014, 10:55

16. greathero1 (Posts: 458; Member since: 13 Jun 2008)


We'll if it was just a software equalizer, it was a damn good one and no other phone could match it. Having it was definitely a plus. I loved how it amplified the sound of my factory car system when streaming Pandora on the go. Highs were great, mids were good, and bass was good as well. I guess I'm just dumb founded by all this "good" for HTC rubbish when the One has been reviewed inside and out and there has been nothing but praise for the sound quality. I definitely miss the sound quality since buying a Nexus 5.

posted on 05 Jan 2014, 04:48 2

5. hboy857 (Posts: 146; Member since: 03 Jun 2013)


"But last year, the Taiwan based manufacturer spilled red ink in the amount of $101.3 billion USD" you mean to say $101.3 million not billion.

posted on 05 Jan 2014, 04:50

6. tridentcore (Posts: 6; Member since: 06 Apr 2012)


please no more 4MP... make it 13MP for good.. yes you can add "UltraPixel" but at least with 13MP or 16MP output.. NOT that crap 4MP...!!! with 4MP there's no detail...!!!

posted on 05 Jan 2014, 04:55

7. pyradark (Posts: 736; Member since: 10 Jun 2012)


Like what analysts say "focus on midrange", maybe it will turn things around!!!

I remember way back 2012 when sony only launch a midrange flagship equip with dual core, they sold very good even enter 3rd spot on smartphone on Q3 2012

posted on 05 Jan 2014, 05:16 4

9. TwentyWendy (banned) (Posts: 65; Member since: 12 Aug 2013)


And Robert junior ads help HTC turn the net profit to losses :)

posted on 05 Jan 2014, 11:49 1

19. asian101 (Posts: 2; Member since: 05 Jan 2014)


I feel for HTC, I want them to succeed this 2014. Though I don't have the One (currently using a competitor's phone), their failure is pretty understandable. Most, if not all, Android enthisiasts want value for money (UNLIKE iPhone fanatics), but HTC One wasn't when it was released (pricier in most world markets compared to Xperia Z or S4). Good looking phone, premium build, great display, different UI may help a bit- but in the end, consumers chose a less attractive phone, but with primary features that weren't available in HTC One, at a cheaper price.

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