HTC’s latest financials make for some other moderately dismal learn for the cell instrument and VR headset maker, although — crumbs of relief — it’s making a fairly smaller 12 months-over-yr loss. Its running loss for this fall 2016 used to be NT$ three.6 billion ($ 116.8M) vs a loss of NT$ four.1 billion ($ 133.1M) in this autumn 2015.
revenue for q4 2016 was once also down at NT$ 22.2 billion ($ 720.7M), which is a year-over-year drop of around thirteen per cent. now not great news, evidently, but much less of a YOY revenue slide than in other up to date quarters.
however gross margin declined year over 12 months too, dropping from thirteen.9 per cent in this autumn 2015 to 10.5 per cent in this autumn 2016. whereas HTC’s year over 12 months operating margin was once virtually the same, at -16.0 per cent for the quarter.
In its document for this fall, HTC claims “powerful gross sales efficiency” and notes sequential revenue “bettering sequentially over 2016”, although earnings was once in truth flat between Q3 and this fall — at some degree in the gross sales cycle when you would possibly be expecting a vacation boost to income.
HTC additionally flags what it describes as “aggressively managed” operating expenditure delivering a 34 per cent value reduction for the industry over the route of the yr.
but efficiency savings can’t in themselves beget trade turnarounds — that requires a string of product wins. And virtual truth is a risky wager for HTC to be making for that, given the shortage of proven shopper demand for this sort of nascent tech.
In up to date years loss-making quarters have transform the norm for the Taiwanese company, which posted its first ever loss making quarter in Q3 2013. for the reason that then, the raft of management adjustments, portfolio tweaks and a partnership with games writer Valve concerned with virtual truth have yet to translate into any sustained upward momentum for HTC’s business.
On the product front — past its ongoing efforts to tout its Vive VR play — this autumn saw HTC put out a couple of mid tier handsets badged with present/lengthy-in-the-enamel brand names, corresponding to desire and Evo.
particularly it’s given that launched what it dubs a “new path” for its telephones trade, announcing final month a new cell brand, HTC U, for a variety of handsets pre-loaded with a new AI assistant. now not having a a lot needed smartphone refresh prepared to move in this autumn naturally didn’t help its gross sales performance in the quarter.
HTC used to be additionally the design and manufacturing associate for Alphabet’s new Google-branded Pixel handsets, which launched right through the quarter. however there are few signs that relationship has translated into giant gross sales income for HTC.
Its this autumn report offers little element on any future plans, in basic terms pointing to its persevered funding of effort to check out to determine a sustained market for VR.
“HTC continues to build the digital fact ecosystem around HTC VIVE, with several occasions underlining the rising reach of the Vive platform, together with opening the primary VIVE-based totally arcade in Taipei, first demo days for VIVE X accelerator software in Beijing, Taipei, and San Francisco, and the launch of VIVE studios,” it notes.