Wed, Feb 16, 2011 - Page 12 News List

E Ink Holdings reports record-high earnings

By Amy Su  /  Staff Reporter

E Ink Holdings Inc (元太科技), the world’s biggest e-paper display supplier, yesterday reported record-high quarterly net earnings, aided by the global uptake of e-readers, such as Amazon’s Kindle series.

Fourth-quarter net income grew more than seven times to NT$1.92 billion (US$65 million), or earnings per share (EPS) of NT$1.80, from NT$270 million in the fourth quarter of 2009, according to a company statement.

That brought last year’s total net profit to a record high NT$4.03 billion, reversing losses of NT$1.13 billion in 2009.

On a quarterly basis, E Ink’s fourth-quarter net income climbed 170 percent from NT$710 million in the third quarter, company data showed.

“A spike in global shipments of e-readers helped boost growth of E Ink’s revenues and earnings last year,” company chairman Scott Liu (劉思誠) told an investor conference.

With a global market share of more than 90 percent, E Ink would grow along with the industry, Liu said.

He said he was optimistic about sales and earnings this year because of growing demand for e-readers and an improving cost management.

This year, global shipments of e-readers is expected to triple to 30 million units, and E Ink would benefit from this rising trend, Liu said.

To cope with the strong demand, E Ink plans to expand capital spending to NT$4.5 billion this year from NT$1.5 billion last year, Liu said.

He said the capital spending would double the firm’s e-paper display capacity.

Flat panels made using the advanced technology of Fringe Field Switching (FFS), used in Apple Inc’s iPhone4, iPad and other high-end handheld devices, will also be an important growth driver for the company, Liu said.

FFS technology was developed by Hydis Technology Co, a South Korean firm that E Ink took over in 2007.

Liu rebutted a report by the Chinese-language Economic Daily News, saying it had no plans of selling a stake in Hydis to form strategic partnerships with other flat-panel makers.

E Ink’s revenues also reached a record-high NT$25.18 billion last year, up 56 percent from NT$16.07 billion last year.

Gross margin jumped to 32.4 percent last year from 3.2 percent in 2009, the company’s statement showed.

After beating its fourth-quarter EPS forecast of NT$1.44, Macquarie Securities said it expected E Ink to continue to benefit from the fast-growing demand for e-readers. The securities firm raised its price target for E Ink to NT$80, from NT$75.

This story has been viewed 5176 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top