Thursday, November 24, 2011

Hongda electric cut the fourth quarter revenue target deal to S3 to reassess

According to foreign media reports, HTC electricity information release on Wednesday, said the impact of the global economic environment overall poor and market competition related factors, the original of the fourth season in 2011 to provide financial forecasting information hypothesis has not applicable, expected this year JiYing 4 will receive the same period last year and nt $104.005 billion (us $3.422 billion) the same level.

Hongda electric says, this October had estimated the fourth season financial projections, the global economy overall environment is not good and market competition related factors faced adjustment. Will and WTI investment and via technologies to S3 Graphics to prudent for comprehensive evaluation of the deal. And the fourth quarter revenue is expected to gain the 43.5 $4.7 billion will also not applicable, revenue and is expected to last year $3.619 billion is, in other words, declines of 20%.

HTC is expected to receive the electricity JiYing 4 goals for the new $1250 to $135 billion (41.1-$4.44 billion), up to 20-30% year-on-year growth, today the company fixed expected this year, JiYing 4 will receive the same level with the same period last year.

HTC electricity suddenly released in the fourth quarter of wealth, the merger to cut the S3 evaluation, market expectations for the next day could share price has shock. Hongda electric said the judge Apple did not infringe upon recently ITC S3 Graphics patent results regret S3 Graphics will also continue to appeal. Facing the complex litigation procedure, HTC electricity in litigation that make all the initial efforts to prepare, and complete legal inspection, and listen to the patent evaluation experts and opinion.

Hongda electric points out, convinced that Apple infringement is a definite evidence, and ITC to early that Apple patent infringement S3 Graphics2 and decided to S3 Graphics to deal. In view of the ITC final judgment appear change, HTC electricity will and WTI and via technologies to S3 Graphics common to prudent for comprehensive evaluation of the deal.

HTC electricity in a previous method for the fourth quarter at said see relatively conservative, is expected to the fourth quarter operating income of about 1250-135 billion yuan, the year growth 20-30%, quarter 0.58 7.9% reduction. Mobile phone sales of about 1200-13 million department, quarter down to 1.21%-8.8%, year 31-42% growth, gross margin business between 28% of that business? Interest rates between 14.5%. But this evening but said in a news release said, because the global economy overall poor and market competition environment factors, the fourth quarter financial forecasting information has not applicable, expected in the fourth quarter, revenue will be quite with the same period last year.

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