HTC Corp.

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Company Background

HTC, a leading Taiwanese smartphone maker, is well-known for its technological chops. When the global smartphone market first began to swell, HTC was using high-end models to take bigger slices of the global pie. In 2011, HTC was at its peak in terms of earnings. It controlled 8.8% of the global smartphone market in terms of shipments, becoming the world's fifth-largest smartphone maker, according to U.S. market researcher IDC.

HTC was founded in 1997 by Wang Cher, a daughter of Wang Yung-ching, the founder of Formosa Plastics. HTC started off as a contract manufacturer of personal digital assistants, which were a thing in the late 1990s. HTC jumped into the smartphone game in 2007. In the following year, the company launched the world's first smartphones using Google's Android operating system. It created a sales network by partnering with telecommunications companies around the globe.

Since 2012, however, Samsung Electronics of South Korea has rapidly expanded its market share, significantly cutting into HTC's smartphone sales. Moreover, the Taiwanese company was slow to enter China's smartphone market. Insufficient branding and marketing has also hurt HTC.

Sales of its latest model, the HTC One M9, released in March 2015, have been lackluster. As a result, the company announced in August plans to cut 15% of its global workforce of 15,000. The company for years focused on production at its own Taiwanese factories but has begun to contract out as part of its cost-cutting efforts.

In 2014, HTC released the Re. The small point-and-shoot camera, which shoots stills and video and streams the images to a smartphone, exemplifies how the company seeks to diversify into other businesses and be less reliant on smartphones.

Business Summary

HTC Corp. engages in the research, design, manufacturing and sale of smart mobile devices. It offers mobile phones based on Android and Windows Phone operating systems and also provides relevant technical and after-sales service support for its products. The company was founded by Hsiueh Hong Wang and Huo Tu Cho on May 15, 1997 and is headquartered in Taoyuan, Taiwan.

Financial Highlights

Dec 2018	TWD	USD
Revenue	23,740.61M	787.30M
Gross Profit	-1,077.76M	-35.74M
Operating income	-13,963.61M	-463.06M
Income before tax	17,264.56M	572.53M
Net income	12,068.20M	400.21M
EBITDA	-12,280.96M	-407.26M
Diluted EPS	14.49	0.48
Dividends Per Share	0.38	0.01
Total Assets	67,710.81M	2,202.90M
Total liabilities	22,490.95M	731.72M
Total equity	45,168.83M	1,469.52M
Operating cash flow	-9,484.58M	-314.53M
	Currency in TWD	Currency in USD

Historical Data

TWD | USD

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	187,809.14M	121,684.23M	78,161.15M	62,124.20M	23,740.61M
Gross Profit	37,461.58M	18,817.62M	6,832.89M	-757.57M	-1,077.76M
Operating income	566.71M	-14,203.14M	-14,608.06M	-17,421.12M	-13,963.61M
Income before tax	1,992.10M	-15,569.89M	-10,521.66M	-16,871.58M	17,264.56M
Net income	1,483.04M	-15,533.06M	-10,560.10M	-16,905.71M	12,068.20M
EBITDA	5,388.42M	-9,721.42M	-11,260.14M	-15,033.94M	-12,280.96M
Diluted EPS	1.80	-18.79	-12.81	-20.58	14.49
Dividends Per Share	0.38	0	0	0	0.38
Total Assets	163,838.27M	129,393.08M	103,149.18M	66,585.40M	67,710.81M
Total liabilities	83,504.90M	64,600.98M	51,377.67M	32,860.27M	22,490.95M
Total equity	80,333.37M	64,792.09M	51,771.50M	33,695.57M	45,168.83M
Operating cash flow	-313.47M	-13,014.31M	-9,584.41M	-18,962.16M	-9,484.58M

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	6,197.66M	3,832.08M	2,423.54M	2,042.03M	787.30M
Gross Profit	1,236.22M	592.60M	211.86M	-24.90M	-35.74M
Operating income	18.70M	-447.28M	-452.95M	-572.63M	-463.06M
Income before tax	65.73M	-490.32M	-326.24M	-554.57M	572.53M
Net income	48.94M	-489.16M	-327.43M	-555.69M	400.21M
EBITDA	177.81M	-306.14M	-349.14M	-494.16M	-407.26M
Diluted EPS	0.05	-0.59	-0.39	-0.67	0.48
Dividends Per Share	0.01	0	0	0	0.01
Total Assets	5,184.42M	3,939.26M	3,200.50M	2,237.52M	2,202.90M
Total liabilities	2,642.39M	1,966.72M	1,594.14M	1,104.23M	731.72M
Total equity	2,542.03M	1,972.54M	1,606.36M	1,132.30M	1,469.52M
Operating cash flow	-10.34M	-409.84M	-297.18M	-623.28M	-314.53M

Valuation Measures

Dec 2018
PER	2.40
ROA	17.97%
ROE	30.60%
Operating margin	-58.81%
Profit margin	50.83%

Key executives

Chief Executive Officer: Yves Maitre
Chief Financial Officer: Tao Pang Shen
Senior Director-Finance: Maggie Tseng
Chief Technology Officer: Wan Hsien Liu
Senior Vice President-Research & Development: Adrian Tung

Shareholders

Way Chih Investment Co., Ltd. (5.3%)
WANG HSIUEH HONG (3.9%)
Way Lien Technology, Inc. (3.7%)
The Vanguard Group, Inc. (2.9%)
Hung Mao Investment Co. Ltd. (2.8%)
CHEN WEN CHI (2.7%)
BlackRock Advisors (UK) Ltd. (1.8%)
Dimensional Fund Advisors LP (1.2%)
Kun Chang Investment Corp. (1.1%)
Stichting Pensioenfonds ABP (1.0%)

Contact Details

Website:http://www.htc.com
Address: No. 23, Xinghua Road, Taoyuan District, Taoyuan, 330, Taiwan
Phone: +886.3.375.3252

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Competitors

Sony Corporation
Samsung Electronics Co., Ltd.
Alphabet Inc. Class A
Microsoft Corporation
BlackBerry Limited
Vuzix Corporation
Kopin Corporation
Inseego Corp.
Inseego Corp.
Electra Consumer Products Ltd.

Last Updated on 6 Dec, 2019