Zyxel Communications, a leading Taiwan broadband access solutions provider, posted after-tax profits of NT$1.27 billion (US$38 million), or a net earnings per share (EPS) of NT$2.91 (US$0.09), during the first nine months of this year, the company said at an investor conference yesterday.
The company also predicted that its fourth-quarter revenues will exceed this year’s quarterly record of NT$3.44 billion (US$102 million) it registered in the first quarter, buoyed by increasing shipments of its central office equipment (COE), including VDSL and IP DSLAM equipment.
Shipments of VDSL and IP DSLAM equipment contributed over 50% to the company’s third-quarter revenues of NT$2.68 billion (US$79 million), the company said.
Third-quarter revenues were down 22% sequentially from the previous quarter as the company was giving up a large quantity of ADSL CPE (customer premise equipment) orders, which generate a low level of gross margins, the company explained.
The winning of a NT$507 million (US$15 million) bid jointly with Taiwan-based HwaCom Systems to supply VDSL equipment to Chunghwa Telecom (CHT) in mid-October will continue to drive up the company’s revenues in the next few quarters, the company said.
Under the contract, Zyxel will supply CHT with VDSL switches, VDSL modems and Ethernet switches, to service 234,000 users. This was the first time for Zyxel to win a major order for Ethernet switches, the company noted.
Article translated by Steve Shen and edited by Eric Mah
