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TAIPEI—Taiwanese smartphone maker HTC Corp. expects to post another net loss in the first quarter, as revenue is set to shrink further amid intensifying competition.
HTC, which posted its first quarterly net loss last year, projects a net loss of between 860 million New Taiwan dollars (US$28.4 million) and NT$3.11 billion for the three months ending March 31.
HTC's latest guidance highlights the difficulties it faces this year as it strives to turn around. Aggressive pricing from low-cost Chinese startups has squeezed even market leader Samsung Electronics Co., which last month said its fourth quarter mobile division earnings remained flat from a year earlier. Lenovo Group Ltd. is also poised to become a stronger contender after its recently announced purchase of Motorola Mobility from Google Inc., the largest ever acquisition by a Chinese tech firm.
The beleaguered Taiwanese smartphone maker eked out a net profitof NT$310 million in the fourth quarter with the help of asset sales, after posting the company's first net loss totaling NT$3 billion in the third quarter.
HTC also said in a filing to the Taiwan stock exchange that revenue in the first quarter will likely be between NT$34 billion and NT$36 billion, down from NT$49.2 billion in the fourth quarter and NT$42.8 billion in the first quarter of 2013.
"If they can get one or two new models to sell reasonably well, they could return in the second quarter to the level they were at a year earlier," said Barclays analyst Dale Gai. "That's still low compared to previous years, but it's a different landscape now."
HTC is expected to launch in coming months a refreshed version of its flagship HTC One smartphone. The device last year garnered strong reviews for its sleek aluminum body design, although its sales were hampered by delayed shipments and a weak consumer market. Analysts say this year's model will have a similar appearance.
It has been a rapid fall for HTC, which was once the leading smartphone vendor in the U.S. market. In 2013, HTC's stock price fell by 54%, as production and management issues pushed the company to its first net loss on record in the third quarter.
A high-profile advertisement campaign with Ironman movie actor Robert Downey Jr. has so far failed to revive the brand's popularity. HTC stock fell 3.8% to NT$127.00 on Monday ahead of its investor call.
As its business declined, HTC has been making changes to its leadership. Chairwoman Cher Wang returned to a more active management role in the fall, and Chief Financial Officer Chialin Chang gained an additional job as head of global sales in December.
Ms. Wang has reiterated her support of Chief Executive Peter Chou, who announced last fall he was off-loading some duties to concentrate on innovation and product development.
Write to Eva Dou at eva.dou@wsj.com
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