Asustek reports double-digit profit growth last year

Aided by notebook computer sales to Sony, Asustek Computer Inc (華碩電腦) reported a 14.4 percent rise in net profit last year to NT$17.27 billion (US$533 million), or NT$6.03 a share, from NT$15.1 billion in the previous year, or NT$5.91 a share.

Sales last year surged from NT$78.05 billion to NT$179.76 billion, Asustek said in a statement filed with the Taiwan Stock Exchange.

Net income in the fourth quarter of last year rose by a slower 5.6 percent to NT$3.8 billion (US$117 million), compared with NT$3.6 billion a year earlier, based on figures calculated by subtracting nine-month numbers from full-year results the company released yesterday.

Asustek is a contract manufacturer and branded vendor of computers, communications and consumer electronics products. It is the world's biggest maker of computer motherboards and a leading producer of notebook computers.

"Shipments of notebook computers to clients like Sony were the main booster for Asustek's profit in 2005," said Eddy Tseng, a technology analyst at Yuanta Core Pacific Securities Corp (元大京華證券).

"Notebook computer output will continue to be Asustek's profit source this year," he said.

Tseng, who expected the company to post a profit of NT$19 billion last year, attributed the shortfall to weaker-than-expected demand for computer motherboards.

Asustek has won all the 1.2 million Intel-based iBook notebook computer orders this year from Apple Computer Inc, the Chinese-language Commercial Times reported on April 4, without citing its source.