HSINCHU (April 28th , 2008)- Accton Technology Corporation today reported its first quarter GAAP financial reports. The first quarter total revenue is NT$ 3.671 billion, with a operating net profits and gain of NT$ 501 million and 90 million, respectively. After deducted other losses from investments, the net profit is approximately NT$68 million.
Accton has indicated the first quarter revenue grows by 4% compares to last quarter’s results. The growth in the first quarter has to do with smooth shipment process of switchers. After implementing a strict control on all aspects of the budget, a sharp decrease in operating costs is resulted. The operating costs ratio decreased from 14.17% in the fourth quarter of last year to 11.18% in this quarter. Consequently, the income from operation in the first quarter turned from negative to positive, where it changed from a loss in last year to a gain of NT$90.14 million.
Affected by the sharp increase of NT dollar, and the slight loss of SMC, other investments as a whole did not produce a profit. However, other important investments, such as Joytech (Accton- South Mainland China) and Arcadyan, continue to grow in their profits. The loss in other investments only totalled NT$22 millions
Accton indicated it will continue to focus on the development of its core business, and eliminate all other non-profitable investments swiftly. It will also target new opportunities with futuristic outlook, and aggressively seek for partnership to create best possible operating environment.
In the first quarter of 2008, major revenues of Accton Tech are: Switcher (accounts for 73% of total revenue); hub and network card (1%); wireless network (14%); broadband and gateway series products (5%); others (7%).
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