Thursday, April 11, 2013

For HTC, profit's not really the problem

Peter Chou

We tend to focus on the wrong numbers, but even the right ones don't look so good

HTC this week announced unaudited Q1 headline numbers, with sales of NT$42.8 billion, or about US$1.43 billion.  Unaudited operating income was NT$43 milllion, which means the company is pretty much at breakeven.

Don’t be fooled into the headlines some people are writing about HTC’s results. I saw one sensationalizing on the idea that earnings collapsed 98 percent year over year. Honestly? Who cares. That’s not what matters. Fact is that HTC has been in financial difficulty for a while.

Let me put some fictitious numbers together to make this crystal clear.

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Source: http://feedproxy.google.com/~r/androidcentral/~3/QmFNhDfkStw/story01.htm

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