Compal Electronics Inc (
The company's notebook shipments in the current quarter are expected to rise as much as 40 percent from the previous quarter to reach around 3.9 million units, Ray Chen (
"Shipments will even grow to more than 4 million if the demand is stronger," he said.
The company said it is still planning to ship a total of 15 million units for the year, even though rival Quanta Computer Inc (
"We are confident of shipping more than 14 million notebooks, but the 15 million target will depend on fourth quarter demand," Chen said.
Compal yesterday reported an 8 percent reduction in its second-quarter net income to NT$1.69 billion (US$52 million), or NT$0.46 per share, from NT$1.83 billion, or NT$0.53 per share, during the same period last year.
Gross margin was below 5 percent for the first time, at 4.7 percent, compared with 6.2 percent a year ago, while net sales grew 17 percent to NT$60.62 billion, Compal said.
Chen attributed the sluggish performance to the slower-than-expected growth in notebook shipments, as Europe's demand did not live up to the expectations of the World Cup and consumers held back purchases to wait for processor price cuts.
The notebook maker's second-quarter laptop shipments grew only 5 percent from the previous quarter to 2.8 million, instead of the earlier projected 15 percent.
As the company's earnings did not surprise analysts, SinoPac Securities Corp's (
Vibo Telecom Inc (
Even so, Compal painted a rosy outlook, with spokesman Gary Lu (呂清雄) saying there was a good chance of seeing another record high in monthly notebook shipments at 1.5 million in later months.
Compal reported a record high in monthly shipments in June and last month with 1 million and 1.25 million units, respectively.
The outlook next year will even be rosier, with global notebook shipments to rise to more than 90 million units, from 73 million this year, Chen said.
The growth will be mainly driven by the maturing wireless applications, and the long-awaited launch of Microsoft Corp's new operating system, Windows Vista, in the first quarter next year, he said.
Chen brushed off market speculation that the company was planning to acquire Arcadyan Technology Corp (
He said the company would enlarge its production deal with Accton, but would not merge with it.
To ensure a diversified product portfolio, Compal's non-notebook products -- such as liquid-crystal-display TVs and monitors, wireless products and portable media players -- will account for 20 percent of total company sales by 2008, the company said.