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Monday, May 14, 2001
CD-R companies enjoy growing sales in April

"...Taiwan's CD-R companies enjoyed growing sales in April. CMC's share price has soared as a reaction to the encouraging news on May 8's session. Lead Data said that its April sales grew by 31.3 percent year-on-year to NT$261 million. Prodisc Technology posted a year-on-year growth of 13.89 percent for April sales of NT$483 million. Ritek and Gigastorage will publish their April finances today. Ritek estimated April sales at NT$1.75 billion, sustaining the continuous rise since the beginning of this year.

Given that the CD-R price continue to test its high, and the use of production capacities successfully are lifted, listed CD-R makers outperformed other electronics companies, most of which are suffering from the electronics industry continuing its pace toward the nadir to sustain the stable growth in April sales.

CMC said that CD-R would be priced at US$0.24 per piece in the second quarter, marking a notable rise from the first quarter's US$0.18. Separately, CMC has made its peace with Dutch giant Philips, while other CD-R companies are still in a deadlock in patent talks. Furthermore, CMC even has received the understanding from Philips to lower the charge from previously-contracted US$0.045 to US$0.035. At present, CMC has lifted the capacity use by 10 percent, and expects to plow ahead at full production capacity in August. CMC expects the mounting sales throughout the year on the back of the increase in capacity use and the decrease in the manufacturing cost.

Ritek agreed to the better outlook for the CD-R industry by saying the CD-RW drive shipments have reached 80 million sets during recent three years, heralding a surging demand of 5 billion pieces of CD-Rs this year. Ritek has budgeted capital expenditures of NT$5.5 billion, of which 20 percent will account for CD-R production..."

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