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Friday, March 25, 2005
Ritek: Q4 DVD+R/-R business in doubt


Ritek's CEO Gordon Yieh comments on DVD recordable media production for Q4 2005.

Ritek anticipates good sales of DVD+R/-R discs for next quarter based on orders received, but it is uncertain whether the global demand will continue growing in the second half of this year, company CEO Gordon Yieh indicated.

Ritek's utilization of DVD+R/-R production capacity currently exceeds 90%, Yieh noted. However, increasing orders for DVD+R/-R discs next quarter may be due to retail channels? expanding their inventories, a so-called "false" growth in demand, Yieh explained. In contrast, the order volume of CD-R discs appears to be decreasing, Yieh said.

Due mainly to the high procurement cost of polycarbonate (PC), Ritek expects a net operating loss for this quarter, Yieh said.


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