Sales down as company looks to mid-level devices

HTC has released its finalized financial results for the fourth quarter of 2013, showing that the struggling Taiwanese manufacturer avoided a second quarter of losses, but with a drop in revenue. Quarterly revenues were NT$42.9 billion, down from NT60 billion in Q4 2012, with net profits of just NT$310 million (around $10.2 million). EPS (earnings per share) was NT$0.38, while gross margin was 17.8 percent and operating margin was -3.7 percent. 

In today's earnings press release, HTC CEO Peter Chou said the company would focus on "building a compelling mid-range portfolio," alongside its high-end offerings. That sentiment was echoed by Chairwoman Cher Wang in an interview with Reuters today. Wang admitted that HTC "didn't do well" in 2013, saying that it had "missed a huge chunk of the mid-tier market." In the same interview CFO Chailin Chang said HTC was targeting the $150-300 price range for its upcoming mid-level products. 

Meanwhile at the high-end, HTC execs reportedly said invites would be sent out in a couple of weeks for the launch event of HTC's next flagship phone. The successor to the HTC One, known by the codename "M8," has appeared in online leaks in recent days.

Looking ahead, HTC predicts revenue between NT$34-36 billion for the first quarter of 2014, with a gross margin between 21.5 and 22 percent.

Source: HTC, Reuters