FSC says it will look into HTC’s cut in its 2nd quar­ter fore­cast

The China Post - - FRONT PAGE -

The Fi­nan­cial Su­per­vi­sory Com­mis­sion (FSC, ), the top fi­nan­cial reg­u­la­tor in Tai­wan, will launch an in­ves­ti­ga­tion into HTC Corp. ( ) af­ter the smart­phone maker un­ex­pect­edly cut its sales fore­cast for the sec­ond quar­ter.

FSC Chair­man Tseng Mingchung ( ) said Mon­day that he has asked the Tai­wan Stock Ex­change to de­ter­mine whether HTC was aware that it might post a net loss of nearly NT$10 ( US$0.32) per share in the cur­rent quar­ter when the com­pany held its an­nual share­hold­ers meet­ing on June 2.

Com­pa­nies is­sue fore­casts vol­un­tar­ily and HTC’s re­lease of a new fore­cast on June 5 did not pose any pro­ce­dural prob­lems, Tseng said on the side­lines of a meet­ing of the Leg­is­la­ture’s Fi­nance Com­mit­tee.

But the Tai­wan Stock Ex­change will still check the work sheets re­ported by HTC to see why the com­pany did not re­veal its re­duced sales fore­cast to its share­hold­ers June 2, Tseng said.

The FSC chief said that HTC re­mains “a highly re­spectable brand.”

In re­sponse

to

the FSC’s in­ves­ti­ga­tion, HTC said that all up­dates to its fi­nan­cial fore­casts are is­sued in line with stan­dard pro­ce­dures.

HTC shares fell by the daily max­i­mum 10 per­cent to close at NT$83.6 in Taipei trad­ing Mon­day, the first trad­ing day af­ter the com­pany said June 5 that it had low­ered its sec­ondquar­ter sales fore­cast to NT$33 bil­lion-NT$36 bil­lion from its pre­vi­ous es­ti­mate of NT$ 46 bil­lion- NT$ 51 bil­lion made April 28.

The Tai­wanese phone ven­dor also said it ex­pects a net loss of NT$ 9.7- NT$ 9.94 per share for the April-June pe­riod, a re­vi­sion from an ear­lier fore­cast of earn­ings of NT$0.06-NT$0.34 per share, cit­ing lower- than- ex­pected global de­mand for high- end An­droid de­vices and the com­pany’s weak sales in China.

De­spite the move to cut its sec­ond quar­ter guid­ance, HTC Chair­woman and CEO Cher Wang ( ) said in a state­ment that her com­pany re­mained determined to strengthen its com­pet­i­tive­ness in the global world smart­phone mar­ket, cut op­er­at­ing costs and raise op­er­a­tional ef­fi­ciency.

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