HTC, the Taiwanese smartphone manufacturing company, recently released their financial report for the second quarter of 2017. Unfortunately, HTC reported losses of NT$1.95 billion which approximately amounts to $64 million. Despite the recent success of the HTC U11, the company seems to be facing the downhill for the ninth consecutive quarter.
Even though the losses were comparatively smaller than the previous quarter, which faced a loss of over NT$2.03 billion, this is still a huge concern for HTC and its investors. HTC also reported that their Earnings per Share for the second quarter was negative NT$2.37 when compared to negative NT$2.47 in first quarter 2017.
The overall gross margin of HTC also faced a downside. It was 16.3% in the first quarter but it is now reduced to 13.7%. However, HTC has managed to cut out a large chunk of operating expenses. While the total operating expenses were over NT$4.7 billion in the first quarter, it is only NT$4.4 billion in the second quarter of 2017.
Soon after HTC announced the financial results, the company’s shares went down 9.06% to $2.05 USD. Trade analysts have reported that if this trend continues, then HTC might face losses in the third quarter of 2017 too. All HTC could do now is to hope that somehow the sales of their latest flagship, the HTC 11 would witness a huge spike.