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Kye posts gross margin of nearly 20% in 2006

Huang Kung Tien, Taipei
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Kye Systems, a Taiwan-based vendor of computer mice, keyboards, speakers and webcams, saw its gross margin rise to 19.8% in 2006 from 19.1% a year earlier due to steady growth of its own-brand business, according to company sources.

Instead of looking for explosive growth in revenues, the company will continue to push its own-brand business while turning away OEM orders with razor-thin profits in order to further strengthen its profitability in 2007, said Alex Lee, general manager of the OBM (original brand manufacturing) Unit at the company.

In 2006, the company also saw its consolidated revenues grow 10.1% on year to NT$13 billion (US$396 million) and its after-tax profits increased 25.5% on year to NT$875 million, said company sources.

The company's net EPS (earnings per share) stood at NT$3.67 for 2006, the sources added.

Article translated by Steve Shen and edited by Eric Mah