Market uptrend comes back to Taiwan's networking & communications equipment industry
Taiwan's leading suppliers of networking and communications equipment saw their earnings for the third quarter much improve from a quarter earlier mostly thanks to market recovery, successful launch of new products and relatively low sales base in the first half of this year.
Alpha Networks Inc. made NT$230 million (US$6.9 million at US$1:NT$33) in after-tax net income last quarter, shooting up 215% from a quarter earlier thanks to weighing sales of the profitable switches and wireless products. In the first three quarters, the company had consolidated revenue of NT$12.3 billion (US$375 million), contracting 34% year on year, and raked in after-tax net income of NT$513 million (US$15 million), down 46% from a year ago.
Hitron Technologies Inc. turned profitable with net earnings of NT$62.7 million (US$1.9 million) in the third quarter from loss a quarter earlier mostly because of its deliveries of products designed around DOCSIS3.0 specification. Throughout the first three quarters this year, the company had cumulative after-tax net income of NT$90.3 billion (US$2.7 million), or NT$0.66 per share.
Hitron's executives pointed out that the company began shipping DOCSIS3.0 cable routers to Portugal in the third quarter. The company will place marketing emphasis on Europe next year. In Asia, the company will mostly promote value-added products in South Korea and started shipping products to Japan in December.
Accton Technology Corp. earned NT$111 million (US$3.3 million) in the third quarter, up from NT$85.2 million (US$25.8 million) a quarter earlier. Its gross profit margin for last quarter rose to 14.2% from the second quarter's 12.7%. During the first three quarters, the company had total revenue of NT$9.8 billion (US$296 million) and after-tax net income of NT$259 million (US$7.8 million).
Planet Technology Corp. reported after-tax net income of NT$27.3 million (US$827,000) last quarter, gaining 30.53% from a quarter earlier. During the first three quarters, the company scored accumulated after-tax net income at NT$81.95 million (US$24.8 million), or NT$1.45 per share.