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Gigabyte and ASRock announce profits for half of 2010

Gigabyte and ASRock announce profits for half of 2010

Taiwan-based motherboard makers Gigabyte Technology and ASRock both announced profits for the first half of 2010.

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Gigabyte had net profits of NT$1.15 billion (US$36.01 million) for the first half of the year, equivalent to an EPS of NT$1.80. The major contributors to the company’s profits were its motherboard, graphics card and networking product businesses, but since its notebook and handset businesses were still unable to turn in profits, market watchers expect the company to see flat growth or a slight increase compared to net profits of NT$2 billion in 2009.

Cheapest College Essay Gigabyte’s motherboard business currently accounts for about 60% of revenues, graphics cards about 10-15% and networking products 15-20%. Both notebook and handset businesses only have an under 10% revenue contribution. Of the company’s motherboard business, Gigabyte currently only has about 10% of its shipments as OEM orders, while the other 90% are all own-brand products.

To digest its inventory, Gigabyte recently dropped the price of its Booktop M1022 netbook using Intel Atom N280 with Windows 7 Starter from NT$16,000 to NT$9,999, expects to ship 500,000 notebooks (including netbooks) in 2010. Gigabyte shipped 200,000 notebooks in the first half of 2010.

Business Plan Writers In Cape Town ASRock announced net profits of NT$591 million for the first half of 2010, an EPS of NT$5.14. For the second half, the company is expected to see only 10% revenue growth sequentially due to uncertainty in the Europe market, which contribute a high percentage of ASRock’s revenues.

ASRock shipped about 3.5 million motherboards in the first half and expects to ship 4.5-4.7 million units in the second half, and 8-8.2 million units for the whole year. As for the company’s PC product line, the business currently only accounts for about 10% of revenues.

Sources from motherboard makers pointed out that September should see the peak of the motherboard sales in the second half. Shipments are expected to start dropping gradually beginning in October with revenues in the fourth quarter to drop 10-15% sequentially.

Source: Digitimes

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