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HTC looks beyond smartphones as outlook gets lowered for Q2
2015-06-07 13:04:00| Telecompaper Headlines
(Telecompaper) HTC has lowered its outlook for the second quarter on the back of slower demand for high-end Android devices and weaker than expected sales in China, and has started to aggressively develop new business opportunities beyond smartphones. The manufacturer is now guiding for revenues of TWD 33-36 billion, gross margin of 19-19.5 percent and earnings per share of TWD 7.70-9.94. The previous guidance was for revenues of TWD 41.5-45 billion, gross margin of 19.5-20 and EPS of USD 0.08-0.47. HTC said Q2 gross margin was also affected by product mix changes and lowered scale, while increased competition raised operating costs for product promotion. The company will also take a TWD 2.9 billion one-off charge for its efficiency programme in Q2. Preliminary revenues for the first quarter reached TWD 65.9 billion, while revenues for the month of May amounted to TWD 10.76 billion.
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Category:Telecommunications