Tuesday, September 16, 2014
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Microsoft To Hold Next-generation Windows Event
Apple Lets You Remove U2's Gift Album From iTunes
Phones 4u Files For Administration
New DisplayPort 1.3 To DRive 5K Displays
Microsoft to Buy Minecraft maker Mojang
Pre-orders for New iPhones Top Four Million in First 24 Hours
Panasonic Reveals The Lumix DMC-LX100, Lumix DMC-GM5 Cameras And the DMC-CM1 Smartphone
Canon EOS 7D Mark II, PowerShot G7 X, PowerShot SX60 and PowerShot N2 Cameras Unveiled At Photokina
Active Discussions
help questions structure DVDR
Made video, won't play back easily
Questions durability monitor LCD
Questions fungus CD/DVD Media, Some expert engineer in optical media can help me?
CD, DVD and Blu-ray burning for Android in development
IBM supercharges Power servers with graphics chips
Werner Vogels: four cloud computing trends for 2014
Video editing software.
 Home > News > Optical Storage > CMC Mag...
Last 7 Days News : SU MO TU WE TH FR SA All News

Sunday, August 22, 2004
CMC Magnetics expects to beat DVD profit target

Despite a drop in monthly sales, the net income of CMC, which makes half the world's recordable DVDs, could exceed NT$10 billion this year.

CMC Magnetics Corp, the world's biggest maker of recordable DVD discs, expects to beat its earlier target of 50 percent profit growth this year because of strong demand, chairman Bob Wong said.

"Growth will be over that," he said in a television interview.

That means net income will exceed NT$10 billion (US$293 million) compared with NT$6.7 billion a year earlier.

Wong's forecast comes even as the maker of about half of the world's recordable DVDs said supplies of the disks have exceeded demand. In June, the Taipei-based company's sales fell for the first time since November 1992, according to reports CMC filed to the Taiwan Stock Exchange. The drop in monthly sales widened to 19 percent last month from 10 percent in June.

"The stock is very cheap at the moment," said Chris Ruffle, who counts shares in the company among the US$60 million Greater China Fund he manages at Martin Currie Investment Management.

The company's shares have lost 37 percent of their value since Jan. 1, compared with a 5 percent decline for the TAIEX. The stock rose 1.2 percent to NT$16.60 yesterday.

CMC is opening a US$200 million factory next month that will help triple the company's output of DVDs that can be recorded at higher speeds.

"We still have to consume a lot of inventory in the third quarter," Wong said. "In the fourth quarter, supplies will become balanced."

CMC's rivals include Ritek Corp, the world's second-largest maker of recordable disks, and Moser Baer India Ltd.

Ritek's monthly sales started declining in May. The Hsinchu-based company's drop in monthly revenue compared with the year earlier period widened to 39 percent last month, from a 17 percent decline in June. Ritek had posted gains in monthly sales since January last year.

Ritek and CMC started shifting more of their output to recordable DVDs in 2002 as smaller competitors increased production of recordable compact discs and prices tumbled as a result of oversupply.

CMC's sales last year were NT$32.8 billion, compared with NT$28.2 billion for Ritek and 15.2 billion rupees for New Delhi-based Moser Baer in its fiscal year ended March 31.

CMC said it will continue to raise money from sales of new shares and bonds. The company in June announced plans to sell as much as US$200 million worth of convertible bonds to finance the new plant.

Wong repeated his expectation to maintain a gross margin of about 50 percent for several years by investing more than rivals in production of new types of recordable DVDs, he said. This story has been viewed 180 times.

From Taipei Times

Pioneer To Introduce New External DVD Writer        All News        Computer experts compete for top prize in Singapore hacking contest
Pioneer To Introduce New External DVD Writer     Optical Storage News      Asustek launches 16x DVD burner

Source Link Get RSS feed Easy Print E-Mail this Message

Related News
Optical Disc Sales Down
DVD And Blu-ray Discs Remain Popular in Britain
DVD CCA Ends Litigation with Kaleidescape
DVD Writer and Media Market Keeps Shrinking
DVD And Blu-ray Discs Remain Preferred Sources of Video Content
DVD FLLC To Run 2013 Market Inspection Tests
DVD6C Lowers Royalty Rates for DVD Read-only Discs
DVD6C Files Lawsuit Against CDI Media
DVD6C Terminates Patent License Agreement with Canadian Premium Disc
Taiwanese Optical Disc Makers To Diversify Their Production
CMC Magnetics Showcases BDXL Discs At CES
Deals, DVDs and Blu-ray Discs Were a Hit With Shoppers Over Black Friday Weekend

Most Popular News
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2014 - All rights reserved -
Privacy policy - Contact Us .