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HTC announces not so good consolidated Q3 2012 results

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					HTC announces not so good consolidated Q3
2012 results




HTC today announced the consolidated results for the third quarter of 2012. The results aren’t
anything like what HTC or its shareholders would have wanted. Just like previous ones HTC had
a rough quarter and reported 48 percent drop in revenue and 79 pecent less profits from last
year’s quarter.

The company reported that it earned a net profit of NT$3.9 billion ($133 million) from NT$70.2
billion ($2.4 billion) in revenue. When these stats are compared with the year-ago quarter, this
result seems very bad. Last year HTC made NT$18.68 billion ($639 million) profit from
NT$135.82 billion ($4.64 billion) revenue. Reporting consecutive bad quarters has not served
HTC well lately as the total cash and cash dividends have dropped from $3.6 billion to $1.7
billion in just one year.

In its report HTC has given the following outlook for the next quarter in which, and has notified
everyone in advance that things are not going to improve dramatically in the coming months.

The Company’s outlook for the fourth quarter of 2012 is as follows:

      4Q revenue is expected to be approximately NT$60 billion
      Gross profit margin expected to be approximately 23%
      Operating margin expected to be approximately 1%

HTC hopes that things will improve in the future as it is going to release new smartphones that
include HTC ONE X+, J Butterfly (in Japan), and HTC 8X and 8S that are powered by Windows
Phone 8. The company is also rumored to launch a 1080p display equipped phone in the US from
Verizon.

				
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posted:10/27/2012
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