Leadtek returns to profitability in July, expects to break even for year

Dom · Aug 11, 2003, 01:37 PM

Taiwan-based graphics card maker Leadtek Research returned to profitability in July on revenues of NT$509 million, up 16.2% from June.

In the second quarter, the company suffered pre-tax losses of NT$46.5 million and a net loss of NT$98.8 million, mainly due to inventory losses and a NT$26.7 million loss recognized on its investments in subsidiaries. Leadtek’s gross margin on graphics cards in the period fell to only 5% as it tried to unload excess inventories.

For the first half, Leadtek posted a pre-tax loss of NT$121 million, or negative NT$0.75 per share.

The company expects its revenues to grow 20-30% sequentially in the third quarter to NT$1.6 billion to NT$1.7 billion on a recovery in communications and multimedia products, according to company chairman K.S. Lu. It also projects its gross margin on graphics cards to return to the 8-12% level for the period. Finally, Leadtek projects turning a profit in the third quarter and breaking even for the year.

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Source: DigiTimes

Aug 11, 2003, 01:37 PM	#1
Dom DriverHeaven Extreme Member Join Date: Jun 2002 Posts: 12,940 Rep Power: 0	Leadtek returns to profitability in July, expects to break even for year Taiwan-based graphics card maker Leadtek Research returned to profitability in July on revenues of NT$509 million, up 16.2% from June. In the second quarter, the company suffered pre-tax losses of NT$46.5 million and a net loss of NT$98.8 million, mainly due to inventory losses and a NT$26.7 million loss recognized on its investments in subsidiaries. Leadtek’s gross margin on graphics cards in the period fell to only 5% as it tried to unload excess inventories. For the first half, Leadtek posted a pre-tax loss of NT$121 million, or negative NT$0.75 per share. The company expects its revenues to grow 20-30% sequentially in the third quarter to NT$1.6 billion to NT$1.7 billion on a recovery in communications and multimedia products, according to company chairman K.S. Lu. It also projects its gross margin on graphics cards to return to the 8-12% level for the period. Finally, Leadtek projects turning a profit in the third quarter and breaking even for the year. ______________________ Source: DigiTimes