We continue getting bad news from HTC. Back in March, when the company released the Q4 2017 financial report, we learned the company’s operating revenue for the fourth quarter of 2017 was NT$15.7 billion ($0.51 billion) which represents a year-on-year decrease of 29.3%. The same picture we saw in consecutive months. HTC officially announced its April revenue report. According to the report, HTC’s total revenue for the month was NT$ 2.099 billion ($70 million), a decrease of 55.4% compared to April 2017. Later, HTC posted an unconsolidated revenue of NT$2.23m (~$72 million). The revenue in May was also down by 9%. HTC’s Q2 revenues this year suffered a 58% drop as compared to Q2 2017. Earlier last month we learned the company laid off 1500 employees. As for now, HTC has released the July 2018 results – a revenue of NT$1.4 billion ($45.7 million), down by 77.41% year-on-year. And this is the worst record since 2003.
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According to industry sources, HTC’s poor performance in July means that its smartphone business is still sluggish, while the virtual reality (VR) business has yet to make a major breakthrough. In the first seven months of this year, HTC’s total revenue was NT$16.692 billion ($0.54 billion), down 53.98% year-on-year.
In addition, HTC also announced its second-quarter results this year, with a net loss of NT$2.09 billion ($68 million), compared with a net loss of NT$1.95 billion ($0.064 billion) in the same period last year. The revenue for the second quarter was NT$68.4 billion ($221 million), down 58% from NT$16.1 billion ($0.54 billion) in the same period last year and down 56% from NT$15.563 ($0.51 billion) billion in the previous quarter.
As we said, HTC announced last month that in order to restore profitability, the company will lay off 1,500 employees in the manufacturing business in Taiwan. The layoffs will be completed by October this year. So we’ll hear worse news from the Taiwanese manufacturer in the nearest future.