HTC Investors

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HTC reports 2013 third-quarter results

1.Date of occurrence of the event:2013/11/05
2.Company name: HTC Corporation
3.Relationship to the Company (please enter ”head office” or
  ”subsidiaries”):Head Office
4.Reciprocal shareholding ratios: N/A
5.Name of the reporting media: N/A
6.Content of the report: N/A
7.Cause of occurrence:
HTC posted a quarterly revenue of NT$47 billion, with a gross
margin of 20.4% and an operating margin of -7.4%, net loss was
reported at NT$3 billion, earnings per share after tax were -NT$3.58.
“We have delivered good progress in the third quarter,” said Peter Chou,
CEO of HTC, “with the introduction of HTC One Mini and One Max, we now
have an HTC One for everyone.” “We have also launched the Here’s To
Change global brand campaign, affirming our role as the change-maker
challenging the status quo since the dawn of the mobile phone industry,
as well as our mission of continuing to bring change into the hands of
people around the world.”

Product Innovation
Building on the success of the award winning HTC One, in the third quarter
the company introduced the HTC One mini and the HTC One max, delivering a
family of devices that offer something for everyone. The launch of the new
mid-range Desire 601 and entry-level Desire 300 further expanded HTC’s
portfolio, enabling consumers to enjoy a premium experience at any price
point. Finally HTC released a blue edition of the HTC One and a limited
edition HTC Butterfly s Hello Kitty phone, bringing a fresh and unique
approach to product design and innovation.

Award Wins
The third quarter also celebrated the HTC One winning further accolades
from some of the most influential consumer technology titles, including
“Phone of the Year in 2013” by T3 Gadget Awards, Pocket-Lint, Tech Radar
and Mobile Geeks, in addition to “Best European advanced smartphone
2013 – 2014.” HTC’s Change campaign featuring Robert Downey Jr. also
significantly ramped up consumer engagement and positive sentiments,
increasing advertising awareness by 12% and brand momentum by 15%, in
the markets that the campaign was aired.

Strategic Investments
After two years of working together, HTC sold back the remaining 24.85%
stake in Beats Audio for a total payment of US$415 million and focused on
the development of its own proprietary sound technology. HTC BoomSound
which is already receiving positive industry feedback, seamlessly
integrates hardware and software algorithms, delivering the ultimate
audio experience to consumers. Additionally, HTC sold 100% of its stake
in digital content provider Saffron Digital for US$47 million, while
retaining permanent royalty-free license to its world-wide media services.

Regional Update
During the third quarter, HTC saw sustained momentum in the EMEA region,
while maintaining number one market share in Taiwan. For the first time
through the launch of HTC One by Verizon, HTC became available across all
four major US carriers in the US and in China, the HTC One max is expected
to be market’s first wave of TD-LTE products, marking yet another
milestone for leadership in global 4G technology innovation.
8.Countermeasures:None
9.Any other matters that need to be specified: None