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HTC made just $133m in Q3, down 79 percent from last year

HTC made just $133m in Q3, down 79 percent from last year

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Gallery Photo: HTC One VX and One X+ AT&T hands-on pictures
Gallery Photo: HTC One VX and One X+ AT&T hands-on pictures

HTC has just announced its Q3 2012 earnings, revealing a net profit of NT$3.9 billion (roughly $133 million) from NT$70.2 billion ($2.4 billion) in revenue. In contrast, over the same period last year the company made NT$18.68 billion ($639 million) profit from NT$135.82 billion ($4.64 billion) revenue. That represents an enormous 48% drop in revenue and a 79% drop in profits year-over-year. As a result of consecutive poor quarters, HTC's total "cash and cash equivalents" has dropped from just under $3.6 billion to $1.7 billion in the space of a year.

Looking forward to Q4, HTC has warned of another disappointing quarter. It expects revenue to fall to roughly NT$60 billion (around $2.05 billion) with an operating margin of just 1 percent — which would leave it with a pre-tax income of just over $20 million for the quarter. HTC recently announced a new 5-inch 1080p flagship phone for Japan, the J Butterfly, which looks like it could mount a serious challenge against other leading smartphones. Recently leaked images suggest that HTC will bring the phone to Verizon in the form of the DLX — will that, its new Windows Phones, and a refreshed One X+ be enough to turn HTC's fortunes around?