Ritek and CMC make high revenues

Monday, August 13, 2001

Ritek and CMC make high revenues

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"...Ritek and CMC, respectively looked for their revenues to continue climbing following a surge in CD-R sales and the acceptance of a price increase for the format. Ritek expected its June revenue would top at least NT$2.05 billion (about US$60.29 million) while CMC estimated its June revenue would be over NT$1.6 billion (US$47.05 million), according to a report in an Asian business daily.

The two media giants, which both replicate prerecorded CDs and DVDs as well as a slate of other recording media formats, further expect the second half of 2001 to exceed the first in revenues and profits. While CD-Rs from the companies currently sell for around $.26 to $.28 in bulk quantities-up from an average of $.24 at the beginning of the year-the third quarter of 2001 could see an attempt at a $.30 CD-R disc price from either or both companies.

Ritek said that it forecasts the global market for CD-R to be up in value by 75 percent. CMC stated that it should see its net margin of CD-R sales return to 40 percent, after slipping amidst last year's overcapacity..."