Transcend Information expects its sales to jump to NT$40 billion (about US$1.22 billion) in 2007, up from NT$25.8 billion in 2006, mainly pushed by the sales contribution from China, according to company chairman Peter Shu.
The memory module house expects to see eight producton lines start operation in the second quarter of this year and run at a monthly capacity of two million units, which will be boosted to three million by year-end, Shu said. In addition, Transcend will start planning a second-stage capacity expansion after that, Shu indicated.
With the capacity expansion plan, sales from China in 2007 will be three times that of 2006, Shu noted.
Furthermore, its overall sales will be helped by its OEM business and business in North America. Transcend expects its OEM sales to account for 20% of its overall sales in 2007, up from less than 5% in 2006, mainly through providing DRAM module products, Shu said.
Sales from North America will account for 15% of its sales in 2007, up from 9% in 2006. In the meantime, Transcend will aggresively develop non-module products such as card readers, MP3 players and external hard drives, Shu indicated. The maker aims to ship 500,000 MP3 players per month in 2007, compared to less than 100,000 in the fourth quarter of 2006, he added.
Transcend's sales jumped 57% to NT$2.58 billion in 2006, with net profits growing 67% to NT$243 million and gross margin at 11.5%.
Article translated by Carrie Yu and edited by Michael McManus
