HTC Cuts Q2 Outlook as European Demand, U.S. Shipments Soften
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HTC is lowering its outlook due to key factors that might also hit the rest of the smartphone OEM industry as well as bigger names like Apple (Nasdaq: AAPL) and Nokia (NYSE: NOK).
The company said May revs reached NT$30 billion and year-to-date revs were NT$128.8 billion. Revenue in the same period last year was NT$40.62 billion with Y-T-D revs at NT$183.51 billion.
For the second quarter, HTC trimmed its outlook to revs of NT$91 billion, gross margin of 27 percent and operating margin of 9 percent. HTC noted "This revision includes a one-time charge of NT$2.6bn to facilitate the clearance of channel inventory for certain products shipped from last year. Without the charge, the revenue, gross margin, and operating margin would have been NT$93.6bn, 29%, and 11.2%, respectively."
Reasons for the charge were lower-than-expected sales in Europe as well as the delayed shipment and launch of certain products in the U.S.
HTC shares ended Wednesday up 3.2 percent on the Taiwan Stock Exchange, the second session of closing higher.
The company said May revs reached NT$30 billion and year-to-date revs were NT$128.8 billion. Revenue in the same period last year was NT$40.62 billion with Y-T-D revs at NT$183.51 billion.
For the second quarter, HTC trimmed its outlook to revs of NT$91 billion, gross margin of 27 percent and operating margin of 9 percent. HTC noted "This revision includes a one-time charge of NT$2.6bn to facilitate the clearance of channel inventory for certain products shipped from last year. Without the charge, the revenue, gross margin, and operating margin would have been NT$93.6bn, 29%, and 11.2%, respectively."
Reasons for the charge were lower-than-expected sales in Europe as well as the delayed shipment and launch of certain products in the U.S.
HTC shares ended Wednesday up 3.2 percent on the Taiwan Stock Exchange, the second session of closing higher.
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