HTC has lowered its sales target for the second quarter of 2015 to NT$33-36 billion (US$1.06-1.16) compared to its previous guidance of NT$46.5-51 billion, citing slack demand for high-end Android smartphones and lower-than-expected sales in China.

The company also revised its gross margin for the second quarter to 19-19.5%, down from the previous forecast of 23-23.5%.

To the surprise of investors, the company said it expects to post a net loss of NT$9.70-9.94 per share instead of an EPS of NT$0.06-0.34 predicted earlier. Total losses will include NT$2.9 billion in one-time impairment charges of idle assets and prepaid expenses.

Meanwhile, HTC also reported revenues of NT$10.79 billion for May, decreasing 20.3% sequentially and 48.8% on year.

For the first five months of 2015, revenues amounted to NT$65.9 billion, a decline 13.7% from a year earlier period.