Taiwan-based motherboard maker Elitegroup Computer Systems (ECS) has announced revenues of NT$23.11 billion (US$721.76 million) for the first half of 2010, a drop of 11.89% on year, with net profits of NT$372 million or an EPS of NT$0.31.
Since ECS recently made significant adjustments in its organization, market watchers expect the company to see 10-15% sequential growth in third-quarter revenues, helping the company to achieve an annual EPS of NT$0.60-0.70 in 2010, holding level on year.
Because to the company's original notebook team from Uniwill has lost a great number of technicians to Shuttle, while the recently established seventh business unit, which was originally formed for notebook manufacturing, has also left ECS and is reportedly planning to start up a new company, ECS' notebook business has been seriously impacted with shipments estimated to reach only three million units for 2010, the market watchers noted.
Also because the WiMAX industry still has not yet taken off, ECS recently closed its WiMAX business due to losses every month.
Motherboard business currently is the main driver of ECS' revenues and is still providing profits despite fierce competition from other first-tier and second-tier players. In the second half, ECS is expected to become more aggressive in promoting its own-brand motherboards and will work to gain OEM orders from first-tier players.
Article translated by Joseph Tsai
