ashecitism
Member
http://www.engadget.com/2015/10/30/htc-q3-2015/
blog post by the above person
http://blogs.wsj.com/digits/2015/10/30/after-loss-htc-no-longer-to-give-earnings-guidance/
A few months ago, we suggested that HTC could be the first really big Android manufacturer to go to the wall. In the wake of the firm's most recent update on its financial health, we're not really able to say anything different. The firm has posted a $138.6 million loss for the last three months, which is better than the $265 million it ate in the previous quarter, but still a loss. That may not, however, be the most troubling issue for the firm since, during its investors call, it announced that it would no longer publish guidance on its future performance.
In stock market business-speak, guidance is a pencilled-in target of how much money a company expects to make (or lose) in the next quarter. It's normally pretty easy to work out, since you know how much of the product you have, how much you've got the capacity to make and what the demand is likely to be. Unfortunately, investors don't like it when you fail to meet this target and respond by punishing the firm by not hanging around. That was a problem back in August, when HTC's declining share price fell beneath its valuation -- effectively saying that the business was worthless.
blog post by the above person
http://blogs.wsj.com/digits/2015/10/30/after-loss-htc-no-longer-to-give-earnings-guidance/
Fresh off falling again into a quarterly loss, the Taiwanese smartphone maker announced it would no longer give guidance for future quarters.
Given the dynamic nature of this business, we have decided not to provide that sort of detailed financial forecast, said HTCs Chief Financial Officer and sales head Chialin Chang, on an earnings call Friday.
It means HTC has turned from one of Taiwans most transparent public companies into one of the islands most opaque.
Its now worse than Hon Hai, said Daiwa analyst Kylie Huang, comparing it to the Taiwanese contract manufacturer also known as Foxconn that shuns forecasts to avoid leaking secrets of Apples iPhone planning.
Mr. Chang said on the call that the move was aimed at avoiding side effects. He reminded listeners of the detailed earnings warning that HTC gave ahead of its third quarter loss as an example of the companys transparency.
Ms. Huang said HTC actually has no obligation to give guidance, and it previously volunteered a more specific forecast than many companies. It was not so usual for a company in Taiwan to give such specific guidance as HTC did. Most companies will just give you a direction, such as saying the margin is trending up or down.