Thu, Dec 22, 2011 - Page 11 News List

Delta to expand software business

BRANCHING OUT:The company said it would speed up the pace of the integration of its hardware and software businesses to boost its competitive edge

Staff Writer, with CNA

Delta Electronics Inc (台達電子), the largest power switch system supplier in the world, said on Tuesday it would expand its cloud technology-based business by using a newly acquired building as a research base.

Delta Electronics won the bid in an auction to acquire a 10-story commercial building, located in the Neihu District of Taipei, from Acer Inc (宏碁) for NT$2.53 billion (US$83 million).

Through cloud technology investment, Delta said, it aims to enhance its Internet-related business in a bid to strengthen its software development.

Acer is scheduled to move out of the Neihu building by the end of March, after which Delta will install the research team for its new cloud-based business in the building.

Delta Electronics is one of a number of local electronics hardware manufacturers that have entered the software development business in an attempt to weather the impact of fierce global competition.

The company said it would speed up the integration of its hardware and software businesses to boost its competitive edge.

The purchase price of the building, with a floor area of about 23,100m2, was lower than the market had expected and it was a good deal, Delta said.

Meanwhile, Acer said it expects to gain NT$653 million in profit from the disposal of the Neihu building and the gains would translate into earnings per share of about NT$0.24 for the company in its results for next year.

Earlier this year, market analysts said Acer planned to use the sale of the Neihu building to lift its bottom line after the company incurred heavy losses in the first nine months of the year because of a massive write-off to clear its inventory in Europe, the Middle East and Africa.

In the nine-month period, Acer posted a loss per share of NT$2.55, compared with NT$4.24 in net profit per share for the same period last year.

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