Just one month after launching a “new direction” for its phone business with the HTC U, the company reports another disappointing quarter.
HTC’s operating loss for the fourth fiscal quarter of 2016 was $116.8 million USD. This result however, was slightly lower than its Q4 2015 operating loss of $133.1 million.
Overall revenue for the fourth 2016 quarter totalled at $720.7 million, which represents a year over year decline of approximately 13 percent. Despite these losses however, the number is slightly lower than that of recent quarterly reports.
Demand for HTC products seemed to remain dismal over 2016. This can be identified by the flat sales recorded during final two quarters of the year where most manufacturers would experience a holiday sales boost.
Despite this however, HTC’s earnings statement cited “robust sales performance” and emphasizes that sales were “improving sequentially over 2016.”
The smartphone giant’s recent reports have mostly mimicked its results for 2016, as the manufacturer struggles to find its footing amidst booming competitors like Samsung and Apple.
With the release of the HTC Vive, the company placed a significant bet on virtual reality software, considering the lack of available data to support consumer demand for these products. It appears that going forward, the company will continue to focus on this sector.
“HTC continues to build the virtual reality ecosystem around HTC VIVE, with several events underlining the growing reach of the Vive platform, including opening the first VIVE-based arcade in Taipei, first demo days for VIVE X accelerator program in Beijing, Taipei, and San Francisco, and the launch of VIVE studios,” states the report.
In addition however, HTC acknowledged its shortcomings in an announcement last month, when it pledged to refresh its phone business with a new brand. The HTC U line will include a range of handsets all equipped with a new digital assistant.
HTC was recently the design and manufacturing partner for Google’s Pixel line, though if the relationship has yielded revenues for the struggling tech company, they’ve yet to show up in an earnings report.
Other than its commitment to VR, the company provided little in the way of forward looking statements or future earnings guidance.