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HONG KONG – Revenue for the first half of 2008 was $734.1 million, an increase 2.8% year-over-year, VTech Holdings Ltd. said in its interim report.
Profit attributable to shareholders rose by 31.5% to $86.5 million, as the group countered cost pressures and improved margins, VTech reported.
“The group achieved increased revenue from its telecommunication products and electronic learning products businesses in Europe, and improved net margins further, despite continued cost pressures," said Allan Wong, chairman and group CEO.
Revenue at the TEL business was $356.1 million, a slight decline of 0.9%. During the period, the business accounted for 48.5% of revenue.
The North American market was weaker than expected, VTech said, with revenue at $253.6 million, a decline of 12.5%, as the US cordless phone market slowed in the face of declining housing starts and fewer promotions by retailers.
However, the company’s branded business in North America continued to gain market share as consumers responded well to the DECT 6.0 range of cordless phones.
Revenue in Europe was $86.7 million, an increase of 43.3%. In Asia Pacific and other regions outside North America and Europe, revenue surged by 118.8% and 68.5%, to $3.5 million and $12.3 million respectively.
Revenue from the ELP business increased to $262.1 million, up 17.4%.
The contract manufacturing services business saw revenue decline by 11.7% to $115.9 million, representing 15.8% of group revenue. Europe remained the leading source of revenue, representing 45.9% of the total, followed by North America at 39.8% and Asia Pacific at 14.3%.
The CMS business is forecast to achieve growth for the full year; sales appear set to pick up in the second half, VTech said.
Profit attributable to shareholders rose by 31.5% to $86.5 million, as the group countered cost pressures and improved margins, VTech reported.
“The group achieved increased revenue from its telecommunication products and electronic learning products businesses in Europe, and improved net margins further, despite continued cost pressures," said Allan Wong, chairman and group CEO.
Revenue at the TEL business was $356.1 million, a slight decline of 0.9%. During the period, the business accounted for 48.5% of revenue.
The North American market was weaker than expected, VTech said, with revenue at $253.6 million, a decline of 12.5%, as the US cordless phone market slowed in the face of declining housing starts and fewer promotions by retailers.
However, the company’s branded business in North America continued to gain market share as consumers responded well to the DECT 6.0 range of cordless phones.
Revenue in Europe was $86.7 million, an increase of 43.3%. In Asia Pacific and other regions outside North America and Europe, revenue surged by 118.8% and 68.5%, to $3.5 million and $12.3 million respectively.
Revenue from the ELP business increased to $262.1 million, up 17.4%.
The contract manufacturing services business saw revenue decline by 11.7% to $115.9 million, representing 15.8% of group revenue. Europe remained the leading source of revenue, representing 45.9% of the total, followed by North America at 39.8% and Asia Pacific at 14.3%.
The CMS business is forecast to achieve growth for the full year; sales appear set to pick up in the second half, VTech said.
HIALEAH, FL – Contract manufacturer Simclar Inc. reported net income for the third quarter was $415,330, down 32.8% year-over-year.
Revenue for the quarter was $33.15 million, up 8% year-over-year.
Pre-tax income was $626,568, down about 39% compared to the same quarter in 2006. Escalating losses in North Carolina operations, poor financial results at the company’s Dayton, OH facility, and raw material shortages were the main factors contributing to the decline in earnings, Simclar said.
Chairman Sam Russell said, "The results for the third quarter were disappointing and we have quickly taken corrective actions. We recently announced the rationalization of our North Carolina sheet metal operations, which are being transferred to our facility in Mexico to take advantage of the lower costs and integration capabilities with PCBA, cable harness, and high-level assembly. We have also changed the general manager at our Dayton, OH plant as a result of that facility's poor trading performance. Material shortages had a particularly adverse affect on our backplane assembly operations; however, we are seeing improvements and, as of now, we do not anticipate any further disruptions from our material suppliers."
TORONTO – Adeptron Technologies Corp. reported a third-quarter loss of $1.12 million, including a one-time $460,263 restructuring charge for consolidation of its Markham manufacturing facilities.
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