HTC had a really bad holiday quarter
HTC has recently sold 2,000 of its engineers towards Google to work on Pixel phones
in a massive exchange of talent worth $2 billion, but what is actually happening with the company besides that?
HTC has now reported its financial results for the 2017 Holiday quarter and unfortunately the results are not great, as HTC revenue stayed flat and the company continued losing money.
Here is a quick overview of HTC's financial results for the past quarter:
- Quarterly revenue of NT$15.7 billion (~$540M) with gross margin of -30.8%
- Quarterly operating loss of NT$9.6 billion (~$330M) with operating margin of -60.8%
- Quarterly net loss after tax: NT$9.8 billion (~$337M), or -NT$11.93 (-$0.41) per share
Keep in mind that the Holiday quarter is traditionally the strongest one for phone makers as this is the time when people are buying new phones in highest volumes. Even this has not helped HTC much, though.
HTC attributes the loss to “market competition, product mix, pricing, and recognized inventory write-downs”, so you basically have the same serious issues all across HTC's business persisting.
One bright spot that is not reflected in this quarterly report is the $1.1 billion that HTC will get from the deal with Google. The company says it will use the cash infusion for “greater investment in emerging technologies” that the company thinks are key to its future.