HTC has released its audited earnings report for Q3, confirming the numbers it initially released several weeks ago. While HTC managed to rake in NT$3.9 billion ($133 million) in net income on NT$70.2 billion ($2.4 billion) in revenue, the numbers represent a 79% drop in profits and a 48% drop in revenue when compared to the same quarter last year.

If that’s not enough to get investors worried, HTC’s cash reserve is being depleted at an unusually alarming rate. According to HTC’s Q3 financial report, the company is sitting on $1.7 billion of cash and cash equivalents compared to the $3.6 billion they had on hand last year. Couple that with a $2.05 billion revenue projection and a 1% margin for Q4 and anyone could predict that HTC will be heading into stormy waters in the near future.

While we never like to see Android OEMs go downhill, this could be the wake-up call that HTC needs. In an effort to keep operational costs down, HTC may finally live up to their promise and reduce the number of handsets that the company is focusing on in an effort to keep operational costs to a minimum.

If you were in charge at HTC, what changes would you make to turn the company around?