Aten International Co Ltd (宏正自動科技), a provider of information technology (IT) infrastructure solutions such as videoconferencing services, yesterday said it is eyeing potential large-scale Kernel-based virtual machine (KVM) switch orders from Asian clients to help the company navigate macroeconomic headwinds in the second half of this year.
A KVM switch is a hardware device that allows a user to control multiple computers with one keyboard, monitor and mouse.
The company provides IT solutions for small offices, home offices, and small and medium-sized businesses. Its products also include video products, server racks, USB peripherals and wiring harnesses.
Photo: Wang Yi-hung, Taipei Times
Aten reported revenue of NT$2.34 billion (US$76.5 million) in the first seven months of this year, down 2 percent year-on-year.
Asia accounted for 61 percent of the company’s sales during the period, while the Americas and Europe contributed 18 percent each, and the remaining regions accounted for 3 percent.
Asia was the only region that posted year-on-year growth this year, and the company is positive about the region in the second half, with demand rebounding in Taiwan, South Korea and India, Aten chief financial officer Wayne Tyan (田慶威) told an online earnings conference.
Aten remains cautious about Europe amid the prolonged Russia-Ukraine war, but has seen US demand rebound after tariff-related concerns subsided, Tyan said.
For KVM, Aten expects Asian revenue this year to rise from last year, supported by orders from Japan and India, and a gradual rebound in demand in Taiwan, Aten senior manager of the enterprise product center Yiwun Lu (呂以文) said.
Revenue from the US market is expected to gain support by recovering demand since last month and increased shipments of secure KVM switches, Lu said.
Secure KVM switches emphasize security and certification to better meet government and military information assurance standards than regular KVMs.
The KVM outlook in Europe remains uncertain due to seasonal factors, with half of the orders in northern European nations yet to be shipped, she said.
Aten’s net profit in the second quarter tumbled 39.32 percent to NT$65.19 million from NT$107.44 million in the same period last year, weighed by the sharp appreciation of the New Taiwan dollar, Tyan said.
On a quarterly basis, net profit declined 41.57 percent from NT$111.59 million.
Every 1 percent appreciation of the NT dollar against the US dollar resulted in foreign exchange losses of NT$4 million to NT$5 million, she said.
Earnings per share fell to NT$0.53 from NT$0.88 a year earlier and NT$0.91 the prior quarter.
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