Asustek to see revenue shoot up 50% to NT$360 B. for 2005

Asustek Computer Inc., one of Taiwan‚s leading computer & communication products makers, is projected to earn a total revenue of NT$360 billion (US$10.59 billion at US$1 = NT$34) this year, a sharp rise of 40%-50% over last year.

The company forecasts that revenue for 2006 could grow by more than 30% to challenge the NT$500 billion (US$14.71 billion) mark.

Among Asustek's products, notebook (NB) computers and desktop computers are believed to be the two major items pushing up the company‚s revenue. Asustek estimates it will ship a total of three million NB computers under its Asus own brand next year. Market rumors have also indicated that Asustek is very likely to obtain big orders for NB computers from Dell for 2006.

Moreover, Asustek and Askey Computer Corp., a Taiwan manufacturer of modems, routers, hubs, and video converters, recently declared at a joint interim meeting for stockholders that the two companies have decided to merge next year. After the merger, Askey will become a subsidiary of Asustek, with Askey swapping seven shares of its stock for one share of Asustek's. The exchange date has been set for March 1, 2006.

Insiders disclosed that Asustek's revenue from Internet and communication products is around NT$12 billion (US$352.94 million) per year. That figure will very likely soar to NT$40 billion (US$1.18 billion) after Asus merges Askey next year, as the latter scored NT$30 billion (US$882.35 million) in revenue last year.

Source & copyright: CENS