HTC CFO says company will not need to tap markets in 2015

Wed Oct 8, 2014 9:09pm EDT
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NEW YORK (Reuters) - HTC Corp (2498.TW: Quote) will not need to tap the capital markets in 2015 or even beyond, the Taiwanese smartphone maker's chief financial officer told Reuters on Wednesday, citing its lack of debt, $1.7 billion in cash and the ability to fund itself.

“I don’t think we need to worry about it at all," Chialin Chang said in an interview on the sidelines of the company's launch of a new smartphone and miniature connected camera. "We’re not going to the capital markets for funding. We can self-fund ourselves very sufficiently.”

HTC's phones have often struggled to translate positive early reviews into strong sales and the Taipei-based former contract manufacturer has found it difficult to build its own identity in an increasingly competitive space.

The company last week reported better-than-forecast third-quarter profit, but mainly thanks to cost cuts rather than improved sales.

Chang said the company now has a strong portfolio of phones at prices that will attract buyers in both developed markets and emerging ones.

"I think with a more robust portfolio we're going to be able to show that we can grow again," he said. "Hopefully people will feel in the next earnings call with the guidance, we can get the momentum back."

He also said the company has no interest in being acquired and that it can "best deliver shareholder value on our own, independently."

Like other, larger mobile phone makers such as Apple Inc (AAPL.O: Quote) and Samsung Electronics Co Ltd (005930.KS: Quote), HTC is trying to diversify into other "connected" devices to find new growth outside an increasingly commoditized space, though he said phones remained the company's "key bread and butter."

Chang declined to comment on reports that Google Inc(GOOGL.O: Quote) has selected HTC to make its upcoming 9-inch (23-cm) tablet or that the two companies could collaborate on a "smart watch" although he acknowledged that the company was working on other "smart devices."   Continued...

HTC Chief Financial Officer Chialin Chang speaks during an interview with Reuters in New York October 8, 2014.   REUTERS/Eduardo Munoz