HTC Refuses to Give Q4 Guidance After Posting Q3 Loss

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Many have speculated about the future of the Taiwanese company as one of the first really big Android manufacturer to go very close to the edge. The earnings report for Q3 did not spell good news either.

True, the loss it incurred is significantly lower than the previous quarter, from US$265 million to US$138.6 million. However, it’s still a loss. Then, during its investor call, HTC announced it would not publish guidance on its future performance for the next quarter.

Guidance, is basically a prediction of how much money a company expects to make in the next quarter based on how much product it has, how much capacity it has to make more products and what the demand is likely to be.

HTC’s share price fell beneath valuation on August, so annoucing that it will not guess at its future earnings may sound like it has given up on itself. Of course, there may be other reasons. HTC may find it more difficult to speculate on its future performance due to its current transition into the mid-range market , on top of its restructuring opreations.

Nevertheless, other struggling companies have managed to perdict future losses and let their investors know ahead of time. So there’s definitely something fishy going on for refusing to make public how much loss the company expects to incur in the next three months.

Source: HTC (pdf)

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