Tue, Oct 11, 2005 - Page 10 News List

Asustek poised for bigger things

By Jason Tan  /  STAFF REPORTER

The acquisition of Askey will help Asustek improve its earnings margins because Askey has higher margin earnings, he said.

The acquisition is predicted to boost Asustek's after-tax earnings per share by some NT$0.70 to reach NT$8 next year, he added.

Both analysts said that Asustek has the chance for more link-ups.

"The IT industry is faced with the challenge of low margins. Every firm wants to shed its burdens and put all its energy on its core competencies to cut costs and save resources," Chen said.

Expecting "more to come from Asustek," Pu said it will be difficult to gauge which fields it is thinking about for the next partnership. One area, however, might include handset communications, in order to increase its visibility in this field, he said.

Just how well Asustek executes its plans is the question.

"Asustek will need to achieve a full integration and utilization of business operations, clientele bases and market segments, in order to fulfill its ambitions," Chen said.

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