Compal Communications profits down and Arima Communications losses improve in 1H08
Two leading Taiwan ODM handset makers – Compal Communications and Arima Communications – have reported mixed financial performance for the first half of 2008, with Compal seeing its net profits decline sharply while Arima managed to cut its losses significantly during the six-month period.
Compal saw its net profits plummet 67.2% on year to NT$702 million (US$22.2 million) in the first half as revenues declined 33.5% on year to NT$17.63 billion during the period, the company said.
Although Compal will continue to make new W-series low-cost handsets for Motorola, as well as beginning to ship 3G smartphones to the vendor, a major pick-up in handset shipments from Compal is not expected until 2009, according to sources from Taiwan's handset industry.
Compal is likely to ship a total of 40 million handsets in 2008, short of its revised shipment target of 48 million units, the sources estimated. The company reduced its annual target for this year from 60 million to 48 million in June.
Arima remained operating in the red during the first half but managed to cut its net losses to NT$186 million, compared to a loss of NT$433 million recorded in the same period of 2007, according to company data.
Arima's handset shipments are expected to hit a record high of five million units in the third quarter of this year, which may help the company's operations return to profits for the first time after recording losses for eight consecutive quarters, according to market sources.
Arima is also expected to sustain its goal to ship 15 million handsets in 2008, the sources indicated.
Compal saw its net profits plummet 67.2% on year to NT$702 million (US$22.2 million) in the first half as revenues declined 33.5% on year to NT$17.63 billion during the period, the company said.
Although Compal will continue to make new W-series low-cost handsets for Motorola, as well as beginning to ship 3G smartphones to the vendor, a major pick-up in handset shipments from Compal is not expected until 2009, according to sources from Taiwan's handset industry.
Compal is likely to ship a total of 40 million handsets in 2008, short of its revised shipment target of 48 million units, the sources estimated. The company reduced its annual target for this year from 60 million to 48 million in June.
Arima remained operating in the red during the first half but managed to cut its net losses to NT$186 million, compared to a loss of NT$433 million recorded in the same period of 2007, according to company data.
Arima's handset shipments are expected to hit a record high of five million units in the third quarter of this year, which may help the company's operations return to profits for the first time after recording losses for eight consecutive quarters, according to market sources.
Arima is also expected to sustain its goal to ship 15 million handsets in 2008, the sources indicated.
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