Industrial computer maker CipherLab Co (欣技) said it expects revenue this year to grow 5 to 10 percent from last year, although second-quarter operations have been affected by a sharp appreciation of the New Taiwan dollar against the US dollar since early May.
The company has seen a large portion of its revenue offset by foreign-exchange losses in the second quarter due to the NT dollar’s appreciation, CipherLab finance and accounting division director D.C. Chang (張家榮) told reporters in Taipei on Wednesday, without disclosing the size of the losses.
CipherLab reported losses per share of NT$0.14 in the first quarter, while revenue decreased 5.74 percent annually to NT$270.65 million (US$9.39 million), company data showed.
Photo: Screen grab from CipherLab Co’s Web site
The company supplies handheld industrial computers, barcode scanners, and radio-frequency identification readers and related software, such as automatic identification and data capture systems, its Web site says.
Revenue in the second half of this year is projected to rise 20 percent from the first half after the company secured large orders in Taiwan and Japan, and in Southeast Asia, Chang said, adding that the growth momentum is expected to last until next year.
The company’s clients range from system integrators, express logistics operators and shipping companies to automakers, hospitals and convenience store chains, he said.
With the number of its Japanese projects increasing, the company expects the Japanese market to account for 10 percent of its revenue next year, up from 5 percent currently, Chang said, adding that the firm plans to establish a Japanese subsidiary next month to better serve customers there.
The US market accounts for about 20 percent of the company’s revenue, while western Europe contributes 5 percent and eastern Europe, including Russia, makes up 20 percent, he said.
The company expects US revenue to grow steadily in the second half and anticipates a stable performance in eastern Europe, while the market in western Europe still requires time to develop, the company said.
Chang said the company last month raised prices for products shipped to the US, as it assumes tariff rates would be 10 to 20 percent.
It might consider further adjustments if the rate exceeds 20 percent, he added.
Taiwan remains CipherLab’s main production base, he said, adding that the company has no plans to shift production to Southeast Asia to mitigate tariff effects, as relocation would increase costs and add operational complexity.
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