The Q3 almost turned out to be the anchor that pulled the HTC ship down under water as it sank further and further. HTC announced the Q3 earnings for 2012 and the results have been most disheartening. It reported a net profit of NT$ 3.9 Billion which roughly translates to $133 million from Revenue of NT$70.2billion, which is around $2.4billion.
Though this might independently sound like a daunting figure, when you compare it to the profit of $639 million profit made during the same year from $4.64 billion revenue it is a huge drop of 48% in profits and 79% drop in revenues.
The Q3 has actually meted out consecutive low profit quarters to reduce the ‘cash and cash equivalents’ of HTC from just under $3.6 billion to a even less than half of that, $1.7billion, in the short span of a year.
Unfortunately HTC does not see any change in the fourth quarter of 2012 either. On the contrary it predicts revenue to dip to as low as $20.5 billion with an operating margin of 1 percent.
HTC announced that China still remains the backbone of their business and they will continue to increase their brand presence and partner operators in the county. The performance in USA was expected and did not reveal any pleasant or unpleasant surprise!