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HTC denies it is scaling back production

Jessie Shen, DIGITIMES, Taipei [Thursday 24 October 2013]

Taiwan-based smartphone vendor HTC on October 23 denied media reports that claimed the company had shuttered some of its production lines, looking to outsource production in order to ease the pressure on its cash flow.

In a company filing with the Taiwan Stock Exchange, HTC noted that the company is not shuting down any production lines and has no plans to sell any of its factory assets. HTC also claimed it has a sound cash position and financial strength, and will reveal the company's latest operating results at its upcoming investors meeting.

Reuters reported earlier on October 23 that HTC had halted at least one of its four main manufacturing lines, or at least a fifth of its total capacity, and was outsourcing production as a sales slump put pressure on its cash flow. The report cited what it called sources with direct knowledge of the situation.

HTC has reported revenues of NT$47.05 billion (US$1.6 billion) for the third quarter of 2013, falling short of its guidance of NT$50-60 billion set for the quarter.

HTC is scheduled to hold its quarterly investors meeting on November 5 to discuss its third-quarter 2013 performance, and outlook for the fourth quarter.

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