HTC Announces Another Quarterly Loss
Smartphone (and VR) player HTC has reported its latest quarterly earnings report, confirming an operating loss of approximately $US72.47 million on revenues of $US531 billion for the quarter.
The company says that they “saw a robust second quarter, recording an 11% sequential increase in quarterly revenues, boosted by sales of the new flagship smartphone, the HTC U11, that started shipping in May and immediately topped the list of Android flagship phones in Taiwan.”
“There was also a 6.5% saving in the operating expenses over the quarter due to the continued streamlining of processes and realignment of resources across the Company.”
However, that realignment didn’t prevent the company’s operating costs from holding them back yet again. Costs for the quarter amounted to operating margin of -13.6%.
Still, when it comes to VR, HTC say the their “virtual reality division gained considerable endorsement over the quarter, with key industry players such as Google, Intel and Apple aligning themselves with Vive and collaborating to drive the ecosystem forward.”
“At their I/O event, Google announced HTC as a key partner to develop a Standalone VR headset running on Google Daydream. A partnership with Intel was announced at Computex to make a WiGig wireless accessory for Vive, while in June, Apple showcased high-end VR at their WWDC event, with a Vive demo running on their new macOS High Sierra.”
According to research firm SuperData’s latest Games & Interactive Media Report, revenues from virtual reality hardware and software will grow to approach $30 billion by 2020.
“Total earnings will rise 104% from 2016 to 2017, helping to pull the industry out of the gap of disappointment,” the firm claims.