Networking device maker Alpha Networks will be working with EMS service provider Qisda in the IoT and 5G markets, said Alpha chairman John Lee at a March 22 investors meeting. The pair has formed a strategic partnership.
Lee noted that the two firms are currently cooperating over several projects, which will start contributing revenues in about half a year, helping Alpha Networks see better operation in the second half of 2018 than in the first.
The company's operation is experiencing some difficulties in the first half due to factors including component shortages, rising raw material prices and volatile currency exchange rates, while its order visibility has also shrunk to only around one quarter.
Qisda has spent NT$2.3 billion (US$78.34 million) purchasing 100 million shares of Alpha Networks at a price of NT$23 per unit. The investment will allow Qisda to hold a 18.37% stake in Alpha Networks, making it the second largest shareholder of Alpha Networks behind only D-Link.
Lee pointed out that Alpha Networks already has a long-term partnership with Qisda and they should be able to complement each other.
Alpha Networks also showcased its 5G telecom network solution during the meeting and will primarily promote its micro-telecom suite and services to clients. The suite will offer in-house developed Cloud-RAN, small-size base stations and routers for its enterprises clients to customize the solutions they need, Lee said.
One of the key 5G network applications that Alpha Networks has been pushing is the fixed wireless access, which is to replace the conventional fixed network with 5G routers to eliminate the need of laying optical fiber cables.
Alpha Networks' another major product line is the IoT for car. Alpha Networks has been operating in the car-use radar market for five years and is starting to see some results recently. The company's IoT for car products include 24GHz, 77GHz car-use sensing radars and image-integrated car Ethernet systems. The company has already obtained orders from some car vendors for the before market.
For 2017, Alpha Networks registered consolidated revenues of NT$19.06 billion and a gross margin of 15.18% with net profits of NT$549 million, a drop of 9.78% on year and EPS of NT$1.26.
Alpha Network to partner with Qisda for 5G and IoT
Photo: Digitimes file photo
Article translated by Joseph Tsai
