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    Asustek revenue growth outpaces other leading Taiwan IT makers in 1Q, but profits dow

    Discussion in 'Asus' started by dw51688, May 3, 2006.

  1. dw51688

    dw51688 Notebook Enthusiast

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    Asustek revenue growth outpaces other leading Taiwan IT makers in 1Q, but profits down
    Kung Tien Huang; Jessie Shen, DigiTimes.com [Wednesday 3 May 2006]


    Asustek Computer recorded an on-year revenue jump of 251.98% in the first quarter of 2006, outpacing growth of other leading IT manufactures in Taiwan like Foxconn Electronics (the registered trade name of Hon Hai Precision Industry), Quanta Computer, Compal Electronics and BenQ.

    Asustek, however, experienced an on-year decline of 6.62% in pre-tax profits at the same time, whereas Foxconn, Quanta and Compal enjoyed steady growth. Consolidating Siemens’ handset division still kept BenQ in a loss in the first quarter of this year, but the loss was narrowed from NT$5.72 billion (US$180.97 million) in the previous quarter to NT$4.99 billion.

    Market speculations say that Asustek’s profit drop was a result of its inventory clearance of entry-level products during the first quarter. Asustek’s gross margin fell sharply to 1.27% in the first quarter, down from 8.26% during the same period of 2005.

    Asustek declined to give any explanation for its profit and gross margin drops. The company only indicated that its motherboard shipments in the second quarter will remain flat sequentially, but there will be a slight shipment increase in the notebook segment. Overall, Asustek estimates its performance in the second quarter will be similar to the first quarter result.

    Foxconn posted unconsolidated sales of NT$174.52 billion in the first quarter of 2006, continuing to lead the Taiwan IT industry. In addition to its strong performance from its core business, the EMS provider recorded a profit of NT$6.26 billion from its non-core business in the first quarter, rising 49.71% from NT$4.18 billion during the same period of last year.

    Notebook makers Quanta and Compal anticipate respective notebook shipments will climb 10-15% sequentially in the second quarter, when a number of new models are slated to launch, according to the companies.

    http://www.digitimes.com/systems/a20060503A2005.html
     
    dw51688, May 3, 2006
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