According to DigiTimes, Prodisc and Optodisc, announced downward adjustments to their 2004 financial projections, with their respective pre-tax profits slashed 68.3% and 49.1%.
The adjustments were due to falling product prices and increasing material costs, according to both companies.
The price of the key component polycarbonate (PC) has risen from NT$60 per kilogram, in the last quarter, to over NT$100 currently. PC accounts for about 60% of the total material cost of optical discs, the two companies indicated.
Prodisc expects its net operating loss to increase from NT$27 million, in the last quarter, to NT$95 million this quarter, while Optodisc had net operating profits of NT$29 million for the last quarter but expects a net operating loss of NT$39 million this quarter.