Mustang Industrial, an OEM for optical drives and related components, has received some noteworthy orders in the last few weeks: Thomson Multimedia, which is providing Microsoft with technology and hardware for the X-Box, has chosen Mustang as one of its OEMs for X-Box components. Two other Taiwan-based CD-ROM drive manufacturers have also put in large orders for CD-RW, DVD, and slim drive components. Because of their high profit margin these will contribute a total of NT$210 million in revenues next year. In addition, Mustang is also to provide Proware Technology with disk array products, contributing another NT$60-70 million next year.
A spokesperson for Mustang Industrial said the order from Thomson Multimedia would continue for three years, each year contributing NT$180 million in revenues. The company was unwilling to reveal the names on the DVD, CD-RW and thin CD-ROM component orders, but according to inside sources it is very possible that Acer Communications & Multimedia and AOpen are involved.
Mustang said 100,000 CD-RW component sets will go out each month, contributing NT$5 million in revenues. In addition, 300,000 DVD and 50,000 slim-type component sets will be delivered within the same period.
In October a portion of Mustang’s products were delayed and a few were pulled from production altogether. This caused operating revenues to fall slightly, but once all of the new orders are fulfilled the company should be able to make a turnaround.
Article translated by Noah Sauve and edited by Ken Dawson
