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HTC RELEASES UNAUDITED REVENUE FOR MAY 2015 AND GUIDANCE REVISION FOR 2Q 2015
2. Company name: HTC Corporation
3. Relationship to the Company (please enter "head office" or "subsidiaries"): Head office
4. Reciprocal shareholding ratios: N/A
5. Name of the reporting media: N/A
6. Content of the report: N/A
7. Cause of occurrence: Taipei, Taiwan – June 5, 2015 – HTC Corporation (TWSE: 2498), a global leader in mobile innovation and design, today announced unaudited consolidated revenue for May 2015 of NT$10.79bn, and total unaudited consolidated revenue from January to May 2015 of NT$65.9bn.
HTC has revised 2Q 2015 guidance to be NT$33-36 bn in revenue, 19%-19.5% in gross margin and EPS of -NT$9.70 to -NT$9.94. The change for revenue outlook is due to slower demand for high-end Android devices, and weaker than forecast sales in China, while gross margin is revised primarily on product mix change and lowered scale. At the same time, increased competition has raised operating costs for product promotion; HTC is enacting measures to further improve operating efficiency.
In recognition of prevailing market conditions, HTC has embarked on a comprehensive review on our assets based on current business conditions and future operational needs. The result is a one-off impairment of NT$2.9bn for idled assets and some prepaid expenses.
"We have identified four key business goals for this year: 1) further strengthen the competitiveness of our smartphone business; 2) reduce operating costs and increase operational efficiency; 3) improve organizational alignment and streamline business processes; and 4) aggressively develop new business opportunities beyond smartphones," said Cher Wang, Chairwoman and CEO of HTC. “We have full confidence in achieving our vision and maximizing shareholder value through our world-class innovation and by seizing the exciting new business opportunities in the connected lifestyle space.”
8. Countermeasures: None
9. Any other matters that need to be specified: None