Shares of Taiwan-based device maker HTC Corp. reached the lowest level in 16 months after the company cut its Q4 revenue forecast, Bloomberg reported.
Bloomberg reported that HTC’s shares dropped nearly 7%, or to its lowest level since mid-2010 after HTC reported year-over-year revenues were flat instead of up the expected 20% to 30%. HTC did warn of the flat revenues prior to reporting results.
“Due to global macro economic downturn and market competition, the assumptions of 2011 Q4 financial forecast provided earlier are no longer applicable. HTC expects 2011 Q4 revenue to be approximately the same as Q4 last year. Despite 2011 Q4 revenue is not what we expected, HTC has strong confidence in its products and operation,” the company said in a statement.
This comes after the company suffered a setback in its ongoing patent battle against Apple Inc.
Last week, the United State’s International Trade Commission ruled that Apple did not infringe S3 Graphics’ patents. S3 Graphics is a subsidiary of HTC.
“HTC is disappointed at the outcome of the recent ITC ruling that stated Apple did not infringe S3 Graphics’ patents. S3 Graphics will continue to appeal. HTC has made significant effort in preparing for these complicated legal proceedings, including a complete legal investigation and comprehensive report on patent and price evaluations,” the company stated after the ruling.