HTC may be planning to quash its $300 million S3 Graphics acquisition following the court hearing that ruled that Apple is not guilty of infringement of any of the patents that are held by S3.
As per a company statement, HTC "will reevaluate its planned purchase", reported Bloomberg.
This is the direct outcome of a ruling by US International Trade Commission that overturned the preliminary ruling that was in favour of HTC.
In the original ruling, dated back to the month July this year, it was found that Apple's OS X platform is responsible for the infringement of several patents which will be acquired by HTC as part of the acquisition of S3 Graphics. However, later on US International Trade Commission held that Apple has not violated any patents and thus it terminated the investigation altogether.
Winston Yung, CFO of HTC, said that at present, "here are many [patents] that are very strong ... we think the acquisition is justified because of all the patents".
About the company's next move HTC's general counsel Grace Lei said that an appeal against the ruling is being considered.
On the other hand, in the market scenario HTC seems to be doing average business and on result of fourth quarter the company said "due to global macroeconomic downturn and market competition, the assumptions of 2011 Q4 financial forecast provided earlier are no longer applicable".