HTC saw its net loss more than triple in the fourth quarter, to TWD 9.8 billion (EUR 271 million) from TWD 3.1 billion a year earlier. The bigger loss was due to writedowns on old inventory and an over 29 percent drop in revenues to TWD 15.7 billion, according Telecompaper. The company said results were hurt by "market competition, product mix, pricing" as well as the write-off of excess inventory. The sale of much of its smartphone assets to Google was not completed until the end of January, so the profit on that will be booked only in Q1 2018.
HTC reduced its operating costs to TWD 4.7 billion in Q4 from TWD 5.9 billion a year earlier. However, R&D spending was maintained at a similar level, and the inventory write-downs meant an operating loss of TWD 9.6 billion from the period, versus a loss of TWD 3.6 billion a year ago.
Following the divestment to Google, HTC said it undertook a strategic review of the business to optimize teams and processes. Regional teams were brought under a single leadership for greater coordination of the smartphone and virtual reality businesses, as well as enabling greater leverage of expertise across the group, the company said. Following the recent announcements on new VR products, HTC said it "is positioned well for another strong year of innovation at the forefront of its markets".
HTC also reported revenue figures for the first two months of 2018. Total revenues for January and February reached TWD 6.0 billion, down 35.5 percent from a year earlier.
