Wistron Corp (緯創), one of Taiwan’s leading computer and peripheral original design manufacturers (ODM), reported yesterday a first-half gross profit increase of 50 percent to NT$11.01 billion (US$350 million).
The company attributed the increase to strong shipments of notebooks and liquid-crystal displays (LCD). However, Wistron also warned of slower shipment growth of about 20 percent in the third quarter, falling to below 10 percent by the fourth quarter.
The firm’s current customer base includes large computer firms such as Dell Inc, Hewlett-Packard Co, Microsoft Corp and Sony Corp. Wistron’s product line consists of notebook computers, desktop PCs, servers, personal digital assistants and LCD TVs.
Wistron, once part of the design, manufacturing and services unit of Acer Inc (宏碁), was spun off in 2001. Earlier in the year, Wistron agreed to purchase the computer monitor business of Lite-On Technology Corp (光寶) for NT$9.2 billion.
“The business situation is in line with [our] original planning. The merger with Lite-On Technology will shift operating margins down slightly. Our second half margin projection is around 5.5 percent,” said Simon Lin (林憲銘), Wistron chairman and chief executive officer, during an investors’ conference yesterday.
Consolidated first-half revenue came in at NT$178.89 billion, an increase of 62 percent as operating income reached NT$3.63 billion, a 27 percent increase. Earnings before tax and after tax were NT$3.87 billion and NT$3.11 billion respectively, producing earnings per share of NT$2.55.
Factoring in employee bonuses, second-quarter revenue increased by 6.08 percent quarter-to-quarter to NT$92.09 billion. Pre-tax and after-tax earnings were NT$1.75 billion and NT$1.43 billion respectively, producing an earnings per share figure of NT$1.04.
Lin also addressed the potential issuing of global depository receipts (GDRs).
“We still need to evaluate the business outlook for 2009. If we maintain 30 percent growth, we can use our current balance sheet to run the business. If we go above 30 percent, then we will decide on the possibility of issuing GDRs later this year or early next year. The size of the issue will equal approximately 20 percent dilution,” he said.
The board also approved a capital injection of of 155 million Czech crowns (US$10 million) into its subsidiary, Wistron InfoComm, which is based in the Czech Republic.
Wistron closed up 5.4 percent at NT$48.10 on the Taiwan Stock Exchange yesterday. The stock is down 20 percent in the year to date.
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