Hsinchu, Taiwan – Accton Technology Corporation (Accton hereinafter), (TAIEX: 2345) a leading outsourcing partner of advanced communication products, today held its annual shareholder meeting and approved its 2000 financial report. Its annual profit after taxes was NT$720 million compared to NT$474 million in 1999. Resulting in growth of 52% and an EPS of NT$2.43. The highest in the past three years. The board then approved a profit distribution plan of NT$2 per common share.
The shareholders also approved the following resolutions. First, the approval of Accton Singapore to invest US$10 million to set up Accton Holding Corporation (China) in order to strengthen Accto’s presence and market development in Mainland China. The second was approval of a merger with Eumitcom Technology Incorporated. This merger involves an exchange of shares at a ratio of six Eumitcom shares for one Accton share. It is expected that this merger would enable Accton to expand production capabilities and integrate wireless technology into Accto’s product portfolio..
The third resolution is to empower The Board of Directors to raise funds in the capital market within the range of 80 million authorized shares with the following three options: (1) Cash injection in Taiwan Stock Market (2) issuance of Global Depository Receipts (GDR) (3) issuance of Europe Convertible Bond (ECB).
Accto’s net sales for fiscal 2000 rose 37% to NT$13,119 million over 1999, exceeding the previous forecast of NT$12,500 million by 5%. Gross margin rose 12% to a record NT$2,050 million; with a margin rate of 15.6%. The operating income was NT$652 million, resulting in a 5% decrease over 1999.
In addition, Accto’s net profit for non-operating expenses totaled NT$96 million, a significant improvement compared the net loss of NT$177 million in 1999. As for the future perspective, even with the worldwide economic downturn and a slowdown in the technology sector, Accton will benefit to a certain extent due to major players within the industry tending to outsource production based on cost concerns. This trend has already been reflected in favorable operating results for 4Q 2000. Accto’s revenue for first quarter of 2001 reached NT$4,818 million; and it is anticipated that revenue for 2001 can grow to a history high of NT$ 20,000 million.
