HTC’s Q3 Financial Results Reveal $57 Million Loss
Since the glory days of the HTC Evo 4G, HTC has failed to make significant waves with most of their smartphone products. Even the much venerated HTC One was unable to dethrone its Samsung flagship counterpart. Continuing on that downward trend, it seems HTC is still struggling to recover from the financial issues they’ve been having all year. HTC has been able to slow down their continual revenue loss each quarter, but their efforts haven’t been enough to actually bring a net profit to the company. Although, HTC fans and investors can still point to the fact that there is a slight upward trend in revenue each quarter when they discuss how the company is improving the business.
For the third quarter of 2016, HTC was able to bring in $700 million in overall revenue. This is good news for the company because the earnings are actually up 18% when compared to the second quarter of this year. The overall revenue for HTC in the third quarter of 2016 is also up by 4% when compared to the third quarter last year. HTC attributes this short-term success due to how well the company did in September when revenue was up 42% compared to August, and up 31% compared to last September.
Unfortunately, HTC was still unable to bring in any profits for the quarter. It’s unclear exactly where all of the money is distributed, but it’s possible they are investing in future technology, future designs, or simply pumping it into the company’s marketing budget. We have been hearing rumors about the HTC Ocean series of phones and how HTC is attempting to innovate when it comes to how we interact with our smartphones, so it’s possible that they are betting big on some unannounced project.
Still, for the third quarter of this year, HTC actually lost $63 million, which adjusts to be $57 million post-taxes. This is much better performance than we have seen from HTC in the past, but there still isn’t any profit to be found. The company will either need to bring down costs somewhere, or they will need a new product that boosts sales to finally be able to take them out of the red.Source: HTC (PDF)