HTC counting on VR products to pick up sinking Q4 results
Taiwanese smartphone giant HTC has reported operating loss of NT$4.1 billion for the fiscal 2015 fourth quarter ended 31 December, 2015, with operating margin of negative 16.1 percent.
The company also reported net loss after tax of NT$3.4 billion during the quarter.
Meanwhile, HTC's quarterly revenue grew, reaching NT$25.7 billion with gross margin at 13.9 percent. The company attributed the positive revenue outcome to the "good momentum" it saw from its Desire line of smartphones in Q4, which it said particularly picked up over the holiday season. At the same time, the company said its Android HTC One A9, which launched in October, was well received across Asia, the US, and Europe.
Also see; VR and AR: The Business Reality
Despite the losses recorded during the quarter, HTC remains optimistic, saying its continued ongoing program of realignment, which will include moving into the virtual reality and connected devices market, will improve the company's position.
HTC revealed that moving into Q1, the company has ramped up marketing efforts around the UA Healthbox, an all-in-one body fitness system that was launched in partnership with Under Armour during the Consumer Electronics Show in January, and the Vive virtual reality system.
"We are fully confident in delivering on our promise to enable consumers to pursue their own brilliance across all of our product groups," said Cher Wang, HTC chairwoman and CEO.
The results come after HTC's Q3 results also tanked. Back in October, the company recorded its second quarter loss of NT$5.1 billion, attributing the shortfall to the weak high-end demand in the Android market.
"While the current market climate is challenging, I firmly believe the measures we are putting in place to streamline our operations, improve efficiency and focus, and increase our momentum, will start to show results over the coming quarters," Wang said at the time.
During its first quarter, HTC reported an operating profit of NT$20 million, net income of NT$360 million, and revenue of NT$41.52 billion.
In June, HTC turned down a potential acquisition offer from fellow Taiwanese hardware manufacturer ASUS.