Pegatron Corp (和碩), a computer manufacturer owned by local computer vendor Asustek Computer Inc (華碩電腦), expects revenues to fall by a single-digit percentage in the traditionally slow second quarter, a company executive said yesterday.
In January, Asustek spun off its electronics manufacturing business to create two new companies, Pegatron and Unihan Corp (永碩), in a bid to focus on its own-brand business and boost orders for its original design manufacturing (ODM) business.
Asustek plans to list the two companies in the near future.
“There will be a little slowdown in the second quarter,” Pegatron spokeswoman Denese Yao (姚德慈) told a press briefing. “We feel it will still be within our projections.”
Revenues may drop by a single-digit percentage from combined NT$97.5 billion (US$3.2 million) in the first quarter, of which notebook computers account for the biggest share, 35 percent.
Pegatron retained its projection of NT$550 billion in revenues for this year, Yao said.
Yao did not disclose further financial information about the two companies because Asustek is scheduled to release first quarter results, including those of Pegatron and Unihan, on Wednesday.
Despite speculation about losing a Dell Inc order to local rival Wistron Corp (緯創), Pegatron has no intention to adjust its projected shipments of 10 million notebook computers this year, Yao said.
Meanwhile, Asustek’s board yesterday approved selling all 800 million Unihan shares to Pegatron via a share swap, turning Unihan into a subsidiary of Pegatron.
“We are pursuing more efficient management of our ODM businesses via increased integration in the component supply chain,” Yao said. “Cost savings is one purpose.”
Pegatron shareholders will be able to exchange one Pegatron share for 2.8613 Unihan shares, the company said in a statement.
Pegatron will issue 279 million shares in the wake of the deal, which will boost the number of issued shares to 1.88 billion, the company said.
Pegatron, however, has no plan to merge with Unihan in the near term, Yao said.
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