HTC Q1 net loss of 661.2 million US dollars for the eighth consecutive quarterly loss

According to "Electronic Times" reported on May 10, Beijing time, HTC today announced the first quarter of fiscal year 2017 earnings. The financial report showed that HTC’s revenue for the first quarter was 14.5 billion yuan (NT, the same below), and the net loss was 2 billion yuan (about 66.12 million US dollars), and it suffered losses for the eighth consecutive quarter.

Compared with the net loss of 3.09 billion yuan in the previous quarter and the net loss of 2.61 billion yuan in the same period of the previous year, the HTC losses in the first quarter were significantly improved. HTC lost 2.47 yuan per share in the first quarter.

According to HTC, the continuous adjustment of the organizational structure and human resources constitutes a 20% decrease in operating expenses in the first quarter and the gross profit margin has increased to 16.3%, which is higher than 10.45% in the previous quarter and 9.36% in the same period of last year.

HTC also included 88 million yuan in foreign exchange trading gains in the first quarter results, which was due to HTC's appropriate hedging measures. At the same time, Chialin Chang, president of HTC's smartphone and networking equipment business unit, said HTC will adjust its smartphone strategy and plans to release only 5 to 6 high-end handsets this year.

However, Zhang Jialin also said that because HTC will continue to introduce innovative smart machines to maintain the company's growth momentum in the high-end market, the research and development costs of smart machines will not be reduced.

HTC plans to release the latest flagship HTC U 11 (tentative name) on May 16th. The model will use Qualcomm’s high-end intelligent machine chip Xiaolong 835.