HTC 2013 Annual Report Download - page 6

LETTER TO HTC SHAREHOLDERS LETTER TO HTC SHAREHOLDERS
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Financial Performance
Full-year consolidated revenues came in at NT$203.4 billion, with a consolidated gross
profit of NT$42.27 billion and an operating gross margin of 21 percent. Combined
operating margin was -2 percent, with an operating loss of NT3.97 billion. The full-
year after-tax net loss was NT$1.32 billion, while Earnings Per Share (EPS) was a loss
of NT$1.60. HTC continues to focus on its core operations, working diligently to further
reduce costs and restore positive performance in 2014.
Product Summary
In February, 2013, HTC introduced its flagship smartphone, the HTC One. This phone
introduced a number of breakthrough innovations that still lead the industry. These
include a nearly all-aluminum body made possible only with a pioneering manufacturing
process, and the BlinkFeed home screen experience that lets users customize their home
screen with contents from Facebook, Twitter, and hundreds of global media partners
including the AOL family of properties, CNN, ESPN, Reuters, and many more. The HTC
One also introduced HTC's own proprietary sound technology, HTC BoomSound™ with
dual front-facing speakers, and the unique UltraPixel camera with incredible low-light
performance.
HTC also introduced the HTC Butterfly s, a phone that brought many of the innovations
from the HTC One to the Butterfly franchise that has enjoyed popularity throughout Asia.
Later in the year, HTC also released blue, red and champagne-gold editions of the HTC
One, and a limited-edition “Hello Kitty＂ HTC Butterfly s.
With the launch of the HTC One on Verizon in August, HTC's flagship phone became
available across all four major U.S. carriers in the US for the first time. Building on the
success of the HTC One, HTC introduced the HTC One mini and the HTC One max later
on, offering a family of devices that provide something for everyone.
A new range of Desire products was introduced during the course of 2013,
complimenting the flagship One family. These products provide options for customers
from super fast 4G to entry level smartphones. The most highly recommended of which,
the Desire 500 scoring 89% in independent reviews, proving a success in multiple
European countries: Germany, Italy, Spain, Poland amongst others. The launch of the
new mid-range Desire 601 and entry-level Desire 300, also in the third quarter, further
expanded HTC's portfolio, enabling consumers to enjoy a premium experience at any
price point. The Desire products also provide a platform for customers to experience a
number of core features, such as BlinkFeed, video highlights which were previously only
reserved for the One family.
This positive momentum has only continued in 2014. At Mobile World Congress in
February, we launched the HTC Desire 816, which brought beautiful design and high
performance to the mid-tier segment. This new smartphone won several awards,
including “Best Mid-Range Phone＂ from Android Authority and “Best Budget Phone＂
from Laptop Magazine. Also at MWC, the HTC One was awarded “Best Smartphone of
2013＂ from the GSMA, and also won the coveted Gold Design award from iF Design.
In March, we unveiled the HTC One (M8), our new flagship smartphone that delivers
premium metal design, a completely redesigned HTC Sense user experience, improved
BoomSound, and a breakthrough Duo Camera.
Honors, Awards, and Buzz
HTC's designs were lauded by the media, and received prestigious awards throughout
2013. The new HTC One was awarded the GSMA's“The Best Mobile Handset, Device,
or Tablet＂. This flagship device was also awarded Tech Radar's “MWC's Best Phone＂
and“Best in Show＂and won“Best Smartphone＂from Mobile Geeks. The HTC One
continued to win accolades later in the year, including“Phone of the Year in 2013＂by