Following their first-tier counterparts, second-tier motherboard makers have tried to improve their business performance by diversifying their operations. Currently, Shuttle and Jetway Information are two companies that have reported better results. Orders for their non-motherboard products are expected to contribute considerably to their second-quarter revenues.
Shuttle made the attempt by launching its mini-barebone systems line in August 2001. With shipments rising, the sales ratio of the company’s barebone systems is also expected to increase from more than 10% of total revenues in the first quarter to 20-30% in the second quarter. Shuttle noted that in addition to the current Pentium III-based model, it will start mass-producing Advanced Micro Devices (AMD) Athlon and Pentium 4-supporting lines in the second quarter.
Boosted by the higher gross profits of the barebone systems production, Shuttle’s gross margin rose to 12% in the first quarter.
Jetway is the second Taiwanese manufacturer that has introduced a mini-barebone systems line. To fulfill orders from European and Japanese SIs (system integrators) at CeBIT Hannover, the company began small-scale shipments of Pentium III-based products in April.
Article translated by Christy Lee and edited by Zoran Pavlovski
