HTC posted fourth-quarter financial results on Sunday that came in below analysts' expectations despite aggressive cost cutting.
The Taiwanese handset maker recorded a net income of NT$310 million ($10 million) for the quarter ended December 31, compared with a net loss of NT$2.97 billion ($101 million) in the previous quarter and a net profit of NT$1.01 billion ($34 million) in the year-ago period. The analysts polled by Bloomberg had been expecting an average net income of about NT$694 ($22 million).
The sale of its remaining 25 percent stake in Beats Electronics for $265 million helped the company avoid its second-consecutive quarterly loss.The company posted revenue of NT$42.9 billion ($1.4 billion), in line with company guidance issued in November. At the time, HTC executives said the company during the quarter to around $340 million, 24 percent lower than what was spent the previous quarter.
After years of strong sales momentum, the company suffered a recent dropoff in sales. Supply issues adversely affected the flagship HTC One earlier last year, while the One Max has failed to drum up much consumer demand.
In an effort to regain lost market share, HTC CEO Peter Chou announced in October that he would will temporarilyto Chairwoman and founder Cher Wang to focus on innovation and product development.