HTC 2007 Annual Report Download - page 21

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37
ANALYSIS O
F
2007 BUSINESS OPERATION
RESULTS
In 2007, HTC celebrated its 10th anniversary. It was
also a year during which the company implemented
numerous changes to address opportunities and
challenges presented by the company's strong
growth. The success of the HTC Touch product line
underlines that such changes are meeting with
results that are both solid and positive.
During the first half of 2007, reduced ODM
production and delays in getting CDMA products to
market resulted in a lower quarterly growth rate
compared with the corresponding quarter from the
previous year. However, in the 3rd quarter, the
launch of the HTC Touch in 2nd quarter and a
rebound in demand for CDMA products for 3rd
quarter in the United States saw HTC revenues
stage a strong comeback, with 4th quarter revenue
growth topping 34.7% *1on YoY basis. Growth in
non-ODM business for the corporation exceeded
60%. Overall growth in revenue in 2007 was 13.1%.
36
BUSINESS OBJECTIVES
HTC places a high priority on delivering the most
innovative products to telecommunications service
providers around the world, whether under the
operator's own brand, the HTC brand, or a dual-
brand strategy, in order to help these customers
acquire greater market share and raise average
revenue per user (ARPU). HTC is consolidating
marketing and service efforts along global lines to
meet market needs and fully implement service
commitments to consumers everywhere.
Since implementing its business model aimed to
develop and promote the HTC brand, the company
has built entirely new management systems
dedicated to supporting brand business needs. This
strategy includes the creation of a global sales
organization responsible to increase recognition of
the HTC brand in all principal markets, improve
product market access, and track the performance
of key competitors in terms of R&D work and cost
structures.
OVERVIEW
l
BUSINESS OBJECTIVES
l
ANALYSIS O
F
2007 BUSINESS OPERATION RESULTS
l
Gross Margin Operating Margin Net Margin
07Q1
20%
25%
30%
40%
35%
07Q2 07Q3 07Q4
3 3 .0%3 3 .7%3 4 .1%3 4 .6%
III
OVERVIEW