HTC's first quarter sales have tanked, but CEO Cher Wang says the company has been "working hard to lay the groundwork" for a comeback. The big question is whether HTC's efforts will be a case of too little too late.
The company's sales were down 64 percent in the first quarter. HTC also reported a hefty loss of NT$3.16 a share in the first quarter compared to a profit of NT$0.43 a year ago.
We'll let the chart tell the tale.
More worrisome is that HTC's balance sheet is taking a hit. Metrics such as days sales outstanding, inventory level and days payable all went in the wrong direction.
HTC touted its lineup of new Desire devices, its partnership with Under Armour for the UA Healthbox and its HTC 10 and HTC Vive virtual reality system.
The company said:
HTC has seen strong launches in early Q2'16 for both the new flagship smartphone, the HTC 10, and the HTC Vive virtual reality system, and anticipate good momentum over the year.
Indeed, HTC 10 looks like a strong device. What remains to be seen is whether those products can get traction. The other concern revolves around whether device buyers ultimately see HTC as a viable brand.