HTC REPORTS 2015 SECOND QUARTER RESULTS

Taipei, Taiwan – August 6, 2015 – HTC Corporation (TWSE: 2498), a global leader in mobile innovation and design, today announced consolidated results for its fiscal 2015 second quarter ended June 30, 2015. Key figures:

• Quarterly revenue of NT$33.0 billion with gross margin of 19.3%
• Quarterly operating loss of NT$5.1 billion with operating margin of -15.6%
• One-time charge for idled assets, prepaid expenses: NT$2.9 billion
• Quarterly net loss after tax: NT$8.0 billion, or -NT$9.7 per share

Weaker than expected demand at the high end, consistent with the current Android market, along with weak sales in China, lead to a year on year fall in the second quarter. Meanwhile, year-on-year shipment volume increases were seen in select key emerging markets.

HTC has begun to implement company-wide efficiency measures to reduce operating costs across the organization and ensure resources are appropriately allocated to future growth.
“While the current market climate is challenging, I firmly believe the measures we are putting in place to streamline our operations, improve efficiency and focus, and increase our momentum will start to show results over the coming quarters,” said Cher Wang, Chairwoman and CEO of HTC. “I am confident that our smartphone phone and connected devices strategy is the right one for HTC, and our corporate initiatives will ensure that we deliver on both our vision and business goals.”

HTC continues to invest in promising new product areas such as virtual reality, where the Company is working with over a thousand developers on content creation over a wide spectrum of applications including gaming, entertainment and education, to ensure a compelling ecosystem ahead of the highly anticipated launch of HTC Vive at the end of the year.

3Q 2015 Outlook
HTC is providing the following guidance for this quarter:

• Revenue is expected to be in the range of NT$19 billion to NT$22 billion
• Gross profit margin is expected to be 19% to 19.5%
• EPS is expected to be in the range of -NT$5.85 to -NT$5.51

Quarterly Results Conference Call and Webcast
The webcast of the Q2’15 quarterly results conference call may be accessed at:
http://edge.media-server.com/m/p/98hnbh4y

HTC provides live streaming of its quarterly financial results conference call in English; to receive an alert for future calls please sign up at:
http://investors.htc.com/phoenix.zhtml?c=148697&p=irol-calendar

HTC investor information may be accessed at:
http://investors.htc.com/phoenix.zhtml?c=148697&p=irol-irhome

About HTC
HTC Corporation aims to bring brilliance to life. As a global innovator in smart mobile devices and technology, HTC has produced award-winning products and industry firsts since its inception in 1997, including the critically acclaimed HTC One and Desire lines of smartphones. The pursuit of brilliance is at the heart of everything we do, inspiring best-in-class design and game-changing mobile experiences for consumers around the world. HTC is listed on the Taiwan Stock Exchange (TWSE: 2498). www.htc.com.

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HTC and the HTC logo are trademarks of HTC Corporation. All other names of companies and products mentioned herein may be trademarks of their respective owners.

Disclaimer:
This press release contains forward‐ looking statements which may include projections of future results of operations, financial condition or business prospects based on our own information and other sources. Our actual results of operations, financial condition or business prospects may differ from those expressed or implied in these forward‐looking statements for a variety of reasons, including but not limited to market demand, price fluctuations, competition, international economic conditions, supply chain issues, exchange rate fluctuations and other risks and factors beyond our control. The forwardlooking statements in this release reflect the current belief of HTC as of the date of this release. HTC undertakes no obligation to update these forward‐looking statements for events or circumstances that occur subsequent to such date.