TAIWAN: HTC Corp needs to change the way it has been doing things and cut costs immediately to face the smartphone industry’s tough challenges, company chairwoman and CEO Cher Wang said.
“We have to face the fact that we are operating poorly and our stock price is declining,” Wang said in an internal letter to HTC employees.
This is the second time that Wang has addressed company staff regarding the firm’s recent performance after she delivered a talk at an HTC family day event in Taoyuan on Saturday last week, one day after HTC dramatically cut its financial forecast for this quarter from an estimated earnings per share of between NT$0.06 and NT$0.34 to a loss of between NT$9.4 and NT$9.7 per share.
Following HTC’s unexpected financial guidance change, the company’s shares have plunged 18.64 percent to NT$76 on the local bourse over the past week.
The company has had nearly one-sixth of its market value wiped out following the plunge in its stock price in the past week. The market value was NT$63.92 billion (US$2.05 billion) yesterday, a decrease of NT$13.91 billion from NT$76.83 billion on Friday last week.
In the letter on Thursday, Wang told HTC employees that to achieve the goals the company set during the annual shareholders’ meeting on June 2, every employee must review the progress of their work to improve efficiency.
At the meeting, Wang said the company aims to improve its smartphone business, reduce operating expenses and improve efficiency this year.
She also said HTC plans to develop new business, such as virtual-reality headsets.
Wang said HTC’s growth will be driven not only by the smartphone segment, but by the firm’s action camera HTC RE, virtual-reality applications, health-related services and other projects that are under development.
She urged HTC employees to maintain positive attitudes and encourage each other that the company will overcome its challenges.
“We have faced many difficulties in the past and we managed to stand up again every time. We became better and stronger… I believe HTC will rise again amid this dire situation,” Wang said.
Meanwhile, HTC declined to comment on Asustek Computer Inc chairman Jonney Shih’s remarks yesterday that the PC maker had held internal discussions on acquiring the smartphone maker.
Instead, HTC said it would continue to pursue excellence and perfection and launch amazing products to promote itself in the world.
