While HTC has no long-term debt, 34 percent of its asset value comes from inventory and accounts receivable, according to Bloomberg calculations. Its inventory, measured in turnover days, jumped 60 percent in the 12 months through June 30.
To reverse sales that have fallen by more than 75 percent since the September quarter of 2011, HTC plans to cut costs and focus on the high-end market where profits are higher. Reductions will start in the current period and start to show results by the first quarter, Chang said.
