Taipei, June 12 (CNA) HTC Corp., the world's No. 5 smartphone vendor, will maintain the "right" direction in its operations despite recent difficulties due to a transition period for new products, the company's top executive said Tuesday.
The Taiwan-based company plans to enhance the integration of its marketing and retail channels, hoping that the efforts will pay off in the second half of this year, HTC CEO Peter Chou said at an annual shareholders' general meeting.
HTC Chairwoman Cher Wang said that her company has faced "great challenges" in the past, but she is confident that HTC will make a breakthrough, based on its foundation, and thus create higher value for shareholders.
On June 6, HTC revised its revenue forecast for the second quarter of 2012 from NT$105 billion (US$3.5 billion) to NT$91 billion, down 13 percent from its previous projection.
Its operating margin forecast was trimmed from 11 percent to 9 percent during the second quarter, while the gross margin projection was maintained at 27 percent.
This revision included a one-time charge of NT$2.6 billion to facilitate the clearance of channel inventory for certain products shipped last year.
Waning consumer sentiment has caused slower sales growth in Europe, the company said, while the entry of two HTC flagship smartphones to the U.S. was delayed because of an import ban filed by the ITC in mid-May.
"The extremely competitive smartphone market has proven a trial by fire for HTC in every aspect of our business," HTC wrote in its fiscal 2011 business report.
"It is the forge that created and now sustains our core competitive advantages. We firmly believe that HTC's focus, determination and expertise will continue to help us meet future challenges and generate value for our shareholders," the company said.
According to the report, HTC's 2011 consolidated sales grew 67.1 percent from the previous year to NT$465.8 billion, marking a new high.
Its consolidated gross margin and operating margin last year were 28.3 percent and 14.8 percent, respectively, with earnings per share of NT$73.32, it reported.
The company has approved cash dividends of NT$40 per share, lower than the NT$50 that the market had expected.
(By Jeffrey Wu)