HTC, the troubled Taiwanese smartphone maker, delivered poor second-quarter numbers.
Revenue was TWD33.01 billion ($1.07 billion) and the company reported a net loss after tax of TWD8.03 billion. A comparison with the year ago period (Q2 2014) is striking when the company reported revenue of TWD65.06 billion – nearly twice as much. Net profit in Q2 2014 was TWD2.26 billion.
The Q2 2015 figures follow a warning a month ago on revenue. The company said then it anticipated revenue of TWD33 billion to TWD36 billion, against prior guidance of TWD46 billion to TWD51 billion.
It is concerning that the company only just squeaked past the lower end of its guidance. It pinned the blame in its warning on lower demand for high-end Android devices and weaker than forecast sales in China.
A sense of alarm has been growing since HTC reported poor sales for April 2015, with weak demand for the flagship One (M9).
The device has taken some stick, accused of lacking differentiation to the preceding One (M8), as well as disappointing camera performance, and heat issues relating to its use of Qualcomm’s Snapdragon 810 processor.
Q2 losses were in line with expectations. A month ago, HTC forecast EPS of negative TWD9.70 to TWD9.94. The actual Q2 EPS was negative TWD9.70.
The second quarter is a blow to HTC, following an encouraging performance in Q1.