HTC Reports Staggering 64 Percent YoY Revenue Drop, Hopes For Strong HTC 10 Sales

It's hard not to cringe whenever HTC releases an earnings report these days, though if you're hoping for the handset maker to turn its fortunes around, its latest financial report is especially stomach turning. HTC's revenue during the first quarter for the period ending March 31, 2016, plummeted 64 percent to NT$14.8 billion (around $463 million), down from NT$41.52 billion (around $1.3 billion) in the first quarter of 2015.

That led to an operating loss of NT$4.8 billion (around $150 million), down from posting a profit of NT$360 million (around $11.6 million) in the same quarter a year ago. It's the fourth consecutive quarter that HTC's posted an operating loss, though what's most concerning is the tone HTC is setting for 2016 by starting off in the hole.

HTC 10

The good news for HTC is that its latest financial report doesn't include figures from sales of its flagship HTC 10 smartphone. HTC is also looking to make a splash in VR gaming with the Vive, a competing headset to the Oculus Rift.

"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," HTC said in a statement. "HTC will continue to streamline processes and optimize resources to develop products in the most effective way."

This is an important year for HTC. High-end smartphone shoppers continue to be enamored with handsets from Apple and Samsung, while the the well-equipped HTC 10 will demonstrate whether or not HTC still has street cred in the premium space. And by the end of the year, we'll also have a better idea of where the Vive fits into the emerging VR space.

Via:  HTC
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