Let’s start things off by getting the numbers out of the way. HTC has released its earnings report for Q4 of 2016 which shows revenue of NT$22.2 billion with gross margin of 10.5% and a net loss of NT$3.6 billion. Compared to 2015, revenue for the quarter was down 13.6%. And to make things worse, it was HTC’s 7th consecutive quarter in which the company has posted a net loss.
While it may seem like HTC’s earning report would have a negative effect on the company’s stock price, investors decided to by HTC stock rather than sell it. By the end of trading, HTC’s stock price was up 3.5%.
The key number that most investors took note of was the company’s net loss of NT$3.6 billion and how it compared to HTC’s net loss of NT$4.1 billion in Q4 of 2015. Losing money is never good, but HTC managed to reduce its YoY losses by 24.5% despite the 13.6% YoY drop in revenue.
According to HTC, the company has implemented “enhanced resource realignment” in 2016 which has led to a 30% reduction in costs. The cost reduction will give HTC the opportunity to return to profitability once it can deliver a hit product.
Source: HTC
