HTC revealed its anticipated loss for the third quarter of 2013, as the troubled smartphone maker failed to reverse a business which has been slowing for some time.
While the company has seen its profits and sales fall in previous quarters, it is still the first time it has actually reported a negative bottom line.
For Q3, the company reported a net loss of TWD2.97 billion ($101.2 million), on revenue of TWD47.05 billion. This compares with a Q3 2012 profit of TWD3.9 billion on revenue of TWD70.2 billon.
A minor positive came in the fact that its September 2013 sales of TWD18.15 billion was up 37.8 per cent over the previous month, ending several months of sequential declines.
HTC had already said that there would be red ink in Q3, as it looks to clear its inventory of old products ahead of the introduction of new smartphones.
The company is currently in the midst of refreshing its mid-tier product line, having lost share to a raft of competitors in this increasingly tough segment.
It is also making job cuts, as it looks to better match its cost base to its falling sales.
According to Reuters, the new numbers are “adding to the case for the troubled smartphone maker to abandon its prized independence and reach out for a white knight soon”.
Previous reports have suggested that the company’s current low valuation may make it appealing to potential suitors, which could include those looking at HTC “to help them gain technological know-how and a still well-regarded and recognised brand”.
So far, no comments have come from the Taiwanese company, which indicate it is mulling a change of strategy. Cher Wang, its chairwoman, has been supportive of Peter Chou, HTC’s CEO, following criticism from the financial community.