AOpen Suffers From Unprofitable ODD Business

Wednesday, November 2, 2005

AOpen Suffers From Unprofitable ODD Business

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AOpen continued to suffer losses due to its optical disc drive manufacturing business, with a recognized loss of NT$367 million (US$10.9 million) in the third quarter.

For the first three quarters of this year, the company generated a net loss of NT$956 million (US$28.5 million) and a negative earnings per share (EPS) of NT$3.86 (US$0.11).

AOpen claims that it expects to turn profitable in the first quarter of 2006 after forming a strategic alliance with Lite-On Technology. AOpen will still keep its ODD product line, which currently contributes about 30% to its business and ships 300,000 units monthly, the company said. The cooperation with Lite-On is expected to help AOpen avoid higher production costs and patent fees while ramping up its production output.