Gemtek expects revenues to decline 15-20% in 2009 but swing back to growth in 2010
Harris Lin, Taipei; Steve Shen, DIGITIMES [Friday 27 November 2009]
Network equipment maker Gemtek Technology expects its revenues to decline 15-20% in 2009 compared to 2008 levels but will return to a growth track in 2010 with 50% of total revenues generated from the telecom sector, according to chairman Howard Chen.
Major items shipped to telecom carriers in 2010 will include WiMAX CPE products, IP set-top boxes (STBs), e-book readers, USB dongles, and femtocells, Chen noted.
In 2010, shipments of WiMAX/802.11n integrated built-in modules are expected to reach two million units, and revenues generated from WiMAX related products will account for 20% of total revenues compared to 15% in 2009, Chen said.
Gemtek began small-volume shipments of e-book readers in the fourth quarter of 2009, mainly to telecom carriers in China, noted Chen, adding he expects total e-book reader shipments to top 200,000 units in 2010.
However, femtocell sales will account for only a small portion of the company's total revenues in 2010, Chen added.
Gemtek chairman Howard Chen showcases an e-book reader
Photo: Harris Lin, Digitimes, November 2009