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HTC forecasts gloomy quarter ahead: 'LTE handsets didn’t meet our expectations'

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HTC's forecast of NT$65-70 billion for the first quarter of 2012 is lower than analysts' predictions.

htc rezound
htc rezound

HTC has announced its audited earnings for the third quarter of fiscal year 2011, and the results aren't spectacular, as expected from the unaudited numbers previously released. Revenue was NT$101.42 billion ($3.43 billion), a decline of 2.49 percent year on year, though the overall figure of NT$61.98 billion ($2.1 billion) profit in 2011 was up 56.77 percent from 2010. The Taiwanese company is forecasting revenue of NT$65 - 70 billion ($2.2 - $2.37 billion) in the next quarter, a drop from Reuters analysts' expectations of NT$89.64 billion ($3.03 billion), which is unlikely to do wonders for a share price that has already fallen 42 percent over the last year. The company says it's on course for an operating margin of 7.5 percent this quarter — which would be the lowest in three years according to data collected by Bloomberg — blaming "competition in the US from iPhone and Samsung" for weakness in its numbers and noting that its LTE handsets (the Rezound for Verizon and Vivid for AT&T, presumably) didn't "meet expectations."

However, HTC expects to bounce back following the launch of new products likely to be announced at this month's Mobile World Congress in Barcelona, with the sleek, metallic Ville and quad-core Edge leading the charge.