|Accton and Compal Join Hands---Announce Strategic Alliance for Product Development and Business Expansion|
Hsinchu, Taiwan- Accton Technology Corporation, global outsourcing partner for networking and communications solutions, today (June 13th) held its Annual Shareholder Meeting and approved its 2004 financial report. Net sales for 2004 were NT$18,473 million; net loss before tax was NT$544 million and EPS was NT$ -1.0.
Besides approving the audited reports and financial statements for fiscal year 2004, in a by-election during the meeting, shareholders selected two sets of Directors and one set of Supervisor—ratifying Mr. Ray Chen and Mr. Tim Chou—representatives of Hong Ji Capital Co., Ltd. (subsidiary of Compal Electronics, Inc.) as Directors and Hong Jin Investment Co., Ltd. as Supervisor. The Strategic Alliance is formally established in order to strengthen the cooperation between the two companies.
Yi-Min Doo, President of Accton Technology Corporation, pointed out, "Looking into 2005, it is still a year full of challenges and opportunities. Since the growth of Enterprise network market is estimated to be slow and saturated, Accton should explore new products, new marketplaces, and have a trusted business partner to sustain the continuous company growth." After a circumspect evaluation, Accton Technology Corporation and Compal Electronics, Inc. have decided to establish a long-term partnership and reinforce the global competitiveness of two parties under the premise of "complementary symbiosis and trustful cooperation."
President Yi-Min Doo pointed out that whenever the high-tech products are having a relatively shorter lifespan, including mobile phones, laptops, networking equipments and personal computers; whenever the number of global major product suppliers is exceeding those of the leading brand companies, the upstream suppliers, no matter Accton or Compal, are required to find a long-term strategic technological partner while investing new technology in order to grasp the business opportunities brought by significant number of broadband users and network applications.
Accton Group has held more than 600 patents around the world and established R&D centers in Taiwan, America, Britain, and Mainland China, involving more than 1200 RD talents. Integrating powers of subsidiaries and combining existing resources of worldwide strategic technological partners, Accton Group and Compal Electronics, Inc. will jointly capitalize on brand-new wireless and video/audio technology for developing further applications, such as mobile phones, digital home, and personal digital consuming devices.
Moreover, the cooperation with Compal enhances Accton’s range of manufacturing capabilities, improves the operation efficiency of global logistics, and increases the gross margin and logistic speed. The two parties will expand the business territory and create a win-win situation by integrating technology resources and sharing client bases. For example, the mass production of Accton’s video phone/video mobile phone will enlist Compal’s display technology; and Accton will jointly develop Wi-Fi modules with Compal as well.
President Yi-Min Doo pointed out that Accton will continue to develop robust deployment in Enterprise and carrier-class network equipments, including IPv6 systems, Metro Ethernet Switches, Mesh Networking and Core Switches. Besides, Accton will also concentrate on the emerging digital home entertainment products and establish multi-technology platforms for Strategic Alliances to tap into the burgeoning market.