Things went from bad to worse for Taiwan’s HTC this week as it confirmed weak second quarter results, published a revised outlook for Q3, and indicated that its cost cutting measures will include a headcount reduction.
The firm’s Q2 numbers matched the unaudited figures it published last month: revenue fell 49% to NT$33 billion (€951.5 million), its net loss widened to NT$8 billion (€230.7 million) from NT$2.3 billion in the year-ago quarter, and its earnings per share were a negative NT$9.7.
The figures were in line with HTC’s own expectations, but only because the vendor cut its guidance in June.
And its outlook for the third quarter made for gloomy reading.
The firm expects to post revenue of between NT$19 billion and NT$22 billion this quarter, while it sees a per share loss of NT$5.85-NT$5.51.
"While the current market climate is challenging, I firmly believe the measures we are putting in place to streamline our operations, improve efficiency and focus, and increase our momentum will start to show results over the coming quarters," said HTC chairwoman and CEO Cher Wang, in a statement.
HTC said it has begun to implement company-wide efficiency measures to reduce operating costs and to allocate resources for future growth.
According to Reuters, HTC chief fin ancial officer Chialin Chang said the vendor will cut a significant number of jobs across the organisation.
There are also indications that HTC will shift its focus away from the high-end smartphone market and launch new devices in the lower tiers.
"I am confident that our smartphone…and connected devices strategy is the right one for HTC, and our corporate initiatives will ensure that we deliver on both our vision and business goals," Wang insisted.
