Asustek Computer Inc (華碩電腦), pioneer of low-priced notebooks or “netbooks,” posted disappointing third quarter results yesterday. Due to the global economic slowdown, the company revised down its full year EeePC shipment forecast to 5 million units, while declining to predict next year’s EeePC shipment.
For the fourth quarter, Jerry Shen (沈振來), Asustek’s chief executive officer, predicts notebook shipment will be around 1.7 million to 1.9 million units, while EeePC will be at 1.6 million to 1.8 million units, the same compared with the third quarter’s 1.7 million units for both product lines.
Shen warned that the cloned motherboard market will be flattish at best in the fourth quarter, and may even experience a 10 percent decline from the third quarter.
Looking into next year, “Asus will focus more on increasing gross margin and controlling operating expenses, rather than sheer market share expansion,” Shen said at an investor conference.
He called the new corporate strategy “more volume, fewer models.”
The Taipei-based company posted third quarter pre-tax income (without employee bonuses) of NT$8.36 billion (US$255.19 million), pre-tax income (with bonuses) of NT$7.56 billion, and net income of NT$6.38 billion, which are increases of 16.8 percent, 13.4 percent and 13.0 percent quarter-over-quarter, but decreases of 7.3 percent, 16.2 percent and 14.2 percent respectively year-on-year.
The accumulated first three quarters’ pre-tax income (without bonuses) was NT$25.48 billion, pre-tax income (after bonuses) was NT$23.64 billion, while its net income was NT$19.25 billion. These figures are an increase of 1.4 percent, decrease of 6 percent and decrease of 8.4 percent from the same time last year.
The company’s unaudited third quarter net revenue was NT$78.26 billion, gross profit was NT$16.90 billion, and operating income was NT$5.41 billion, representing growths of 34.8 percent, 25.7 percent and 23.1 percent respectively from the second quarter.
In the third quarter, Asus’ notebook business contributed 47 percent of revenue from all of its product lines, while EeePC constituted 22 percent, followed by motherboard and cards at 19 percent and others at 10 percent.
In terms of geographical revenue contribution for the third quarter, Europe was 53 percent, Asia was 36 percent and 11 percent came from all other areas.
Shen explained that the global credit crisis is affecting European regions, especially Russia and Ukraine, and he expected further declines in business from the region.
The company stock traded up-limit 7 percent to NT$48.65, with a gain of NT$3.15 on the session.
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