HTC expects a dramatic improvement in Q4, hopes to return to profit
Last month, HTC predicted its first operating loss for a quarter since the company exists. Today, HTC officially confirms the loss providing some figures to describe the financial situation in details. According to the company, there is a $102 million loss for HTC in the third quarter of the year. Despite the loss, the CEO of the company Peter Chou believes HTC has delivered good progress. Chou thinks the launch of the One Max and One Mini will fill the gap in the product line up.
At the same time, HTC One is more popular than 2012’s One X and the predictions for the next quarter are optimistic. Alongside the new launches, HTC has focused on its marketing efforts and activities, which according to Chou, has been a success and as a result, the brand awareness has been increased.
The next goal for HTC in short-term will be improving its market presence and overall profitability. Though not dramatic improvement is expected in Q4 2013, the Taiwanese company expects to pull in around $1.36-1.53 billion in revenue which would be a huge reduction in comparison to the last year. Comparing Q3 in 2013 and 2013, we can see that during the same time last year HTC took $34 million profit from a $2 billion revenue and had a gross margin of 23%
Though HTC hasn’t given a specific forecast of its loss or profit in the next quarter, company’s gross margin is expected to drop to 20%. For those of you having invested in the company, the earnings per share will be around $0.01-0.06, HTC predicts. However, taking into account the results from Q3, HTC’s forecast looks too optimistic. It won’t be a big surprise if the company misses again its revenue expectations and incur losses.
Source: HTC
