HSINCHU, TAIWAN(October 26th, 2005) -Accton Technology Corporation (Accton hereinafter) today announced its 2005 third quarter report for the period ended September 30, 2005. Net sales for the
Q3 of 2005 were NT$3,327 million. Gross margin and operating income were NT$576 million and NT$43 million, respectively. Non-operation loss was NT$4 million and net income before tax was NT$39 million.
Accton pointed out that with the adjustment and rearrangement on product portfolio, Accton gradually reduces shipment proportion in lower-margin networking products and concentrates more on higher-margin Enterprise managed switches; besides, the supply chain is effectively increasing the profits. The gross margin has risen from 13.6% last year to15.5% this 1H, and 17.3% this Q3. With the adjustment in operation strategies, Accton’s Brand business—SMC, with its increase in shipment proportion of SMB networking products, it has increased its revenue by 26% and the gross margin is maintained at 20%. The operation costs has reduced 9% and reaches the breakeven with expectation.
Looking into the following two quarters, Accton pointed out that with the shipment of new Enterprise network products, wireless and carrier Ethernet products, the revenue will increase and the gross margin will be above the average. As to the reduction of operation and manufacturing costs, with the growing manufacturing capacity of Accton South China Factory, and the further cooperation with EMS and ODM strategic partners, Accton is confident in reducing costs and increasing gross margin and revenue.
Accton’s 2005 Q3 sales revenue breakdown by product: 63% of revenue was contributed by Ethernet switches, 1% by hubs and adapter cards, 16% by wireless products, 14% by gateway and broadband and 6% for other products. Revenue on a regional basis was 47% from North America, 28% from Asia Pacific and Taiwan, and 25% from Europe.
Accton Technology Corporation
For more than seventeen years, Accton (TAIEX: 2345) has been making partnership work; designing, developing and manufacturing innovative technology for top-tier networking, computer, and telecommunications vendors.The company’s robust and constantly-evolving core technology and highly-qualified employees allow Accton to produce the best in networking and communications technology that keeps people connected–around the world and across the office.Headquartered in the heart of Taiwan’s Hsinchu Science-Based Industrial Park, Accton’s teams of engineers work on location with partners and from Accton R&D centers around the globe.For more information about Accton and its subsidiaries, visit www.accton.com.
