HTC announces Q3 2015 financial performance: $150M in losses on declining revenue

HTC announces Q3 2015 financial performance: $150M in losses on declining revenue

HTC has just published its financial results for Q3 2015, and if you had any doubts given how bad the company's stock has been doing, there's little in the recent earnings report to get investors excited about the company.

HTC posted revenue of $660 million for Q3 2015, a 7% decline compared to the previous quarter, and less than half of the revenue brought in by HTC in Q3 2015.

Following a series of barely profitable quarters, HTC announced losses of $157 million or Q2 2015. For the quarter ending September 30, the company posted losses of $139 million. This means that HTC lost significantly less money on smaller revenue, which is a hint that the company's cust-cutting measures are starting to bear fruit. During its Q2 2015 earnings call, HTC announced that it will axe 15 percent of its workforce in an attempt to cut its operating expenditure by 35%.

In the wake of these poor financial results, HTC announced that it will no longer provide financial guidance to investors. TechCrunch reports that the HTC CFO and President of Global Sales, Chialin Chang, commented during an analyst call that this move was brought in by the dynamic character of the current business year. In Taiwan, where HTC is based, many publicly-traded companies made a similar decision in recent times.

HTC's refusal to provide sales expectations could be easily interpreted as a desperate measure from HTC in an attempt to protect what's left of its stock value faced with a grim future.

Despite all of this, however, it looks like HTC CEO Cher Wang remains optimistic about the company's future. Back in 2013 when originally appointed CEO, Wang said that the realignment measures will start being noticed in early 2016, and the HTC CEO still stands by this statement even in the light of the company's current performance.

What do you guys think? Can you imagine HTC turning the ship around in 2016?

source: HTC via TechCrunch

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21 Comments

1. Cheezwiz

Posts: 500; Member since: Dec 29, 2014

and THAT, is what it looks like when everyone has given up on a company.

3. Mxyzptlk unregistered

Same fate can await Blackberry if they don't drop the price on the Priv.

4. Martin_Cooper

Posts: 1774; Member since: Jul 30, 2013

At least BB has a single android really nice and unique phone. HTC has an ok flagship with 55.000 iterations each more confusing than the next one.

10. Dr.Phil

Posts: 2299; Member since: Feb 14, 2011

No, not really. Blackberry is still a software giant, with their QNX system being used in a variety of applications as well as their other secure software applications used in a variety of systems. So, even if their handset business were to falter they would still have their software business to fall back on. Also, they only need to sell 5 million phones this year. That's not a lot when you think about it. They've been selling on average a million a quarter right now (which would place them close to the 4 million mark).

16. seret6

Posts: 279; Member since: Aug 14, 2013

Mxyxptip dont u worry about bb, having used bb classic and q10, bb will never lose loyal customers due to qwerty keyboard Btw have u used their so called flagship ccalled m9 It was the worst flagship i ever used Im currently using note 4 and s6 edge plus Will trade note 4 for iphone 6s pkus So no fan boy issues on my side Used to be a loyal htc fan ever since i used m7 black, one of the orgeous devices i ever used

2. roldefol

Posts: 4744; Member since: Jan 28, 2011

No big. Gonna blow up next quarter on them fatty One A9 profits.

6. DeusExCellula

Posts: 1390; Member since: Oct 05, 2014

What profits? $500 prince, tiny battery, crappy graphics processing.. yeaaa I think this is another nail in the coffin.

13. NexusX

Posts: 613; Member since: May 16, 2013

sarcasm

5. ryq24

Posts: 874; Member since: Oct 17, 2011

Sony and HTC seems to have the same problem but I think it's only a matter of time before htc close. Sony still have other products that are doing well that can help offset their losses in their mobile division.

7. BLSEOTB

Posts: 334; Member since: Mar 24, 2015

14. Beto_Lopez

Posts: 44; Member since: Apr 14, 2015

10/10 would buy, if they don do this for M10 they are lost. and they need to release it as soon as SD820 is ready

15. roldefol

Posts: 4744; Member since: Jan 28, 2011

Coulda, shoulda, woulda, didn't.

18. yoosufmuneer

Posts: 1518; Member since: Feb 14, 2015

Agreed if paired with an Exynos 7420 and a Great Camera

8. Taters

Posts: 6474; Member since: Jan 28, 2013

If you don't actually have to release financial guidance, nobody except Apple should. Heck, Apple probably shouldn't. Better safe than sorry.

9. Crispin_Gatieza

Posts: 3098; Member since: Jan 23, 2014

Corporations are required, by law in the US, to disclose their finances. Would you invest in a company without knowing their financial health?

12. Taters

Posts: 6474; Member since: Jan 28, 2013

I think financial guidance and disclosing your revenue is different.

11. tedkord

Posts: 17135; Member since: Jun 17, 2009

I'm pulling for them. I wish all phones had those awesome front boomsound speakers.

17. hanabi

Posts: 177; Member since: Oct 08, 2015

Some adroid makers have to die or they will bleed together till the end Htc can no longer support devloping tech they will need another owner like asus who wuld buy them

19. Mike.H

Posts: 32; Member since: Sep 16, 2015

I can't help wonder who will eventually buy out HTC

20. Elfmonster unregistered

What happens to the market if HTC and LG get out of hardware? Would their remaining share go to Huawei and other Chinese companies or to the old standbys?

21. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

Let's hope HTC survives!

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