HTC attempted to put a positive spin on its position as it reported a big increase in its loss during Q4, arguing it is set up for “another strong year of innovation at the forefront of its markets”.
The company recorded a loss for the period to 31 December 2017 of TWD9.8 billion ($337 million), compared with TWD3.1 billion in the prior-year period. Revenue of TWD15.7 billion was down from TWD22.2 billion. According to reports, this is the biggest ever loss for the company.
It also said its cash pile of TWD18.4 billion was down from TWD35.8 billion in twelve months, although it is yet to recognise income from the sale of assets to Google.
HTC said the loss was attributable to a number of factors, including “market competition, product mix, pricing and recognised inventory write-downs”. Gains from the Google deal will be recognised in the first quarter of 2018, “enabling greater investment in emerging technologies, which will be vital across all of our businesses and present significant long-term growth opportunities”.
Apparently, the company undertook “a strategic review of the business to optimise teams and processes”, bringing its regions under common leadership for “greater coordination of the smartphone and virtual reality business” and “enabling greater leverage of our extensive expertise across the group”.