First-tier optical disc makers release 1Q results

Despite poor financial results for the first quarter of this year, all three first-tier optical disc makers in Taiwan project a bright future, saying they expect to see continuous revenue increase for the rest of the year.Citing surging prices for CD-R discs, CMC Magnetics, Ritek and Prodisc Technology all said they expect to see growth in their April revenues. As the second half of the year is usually the peak season for the industry, further growth is also expected, the companies said.CMC, the only one of the three companies to turn a profit in the first quarter, predicted its April revenues to increase between NT$50 million and NT$100 million in April from NT$1.8 billion in March. Similar monthly growth should continue through the end of the year, the company said.Prodisc said it expects to see revenues exceed NT$600 million in April, which would be a record high since December 2001.The three optical disc companies have been raising CD-R disc prices since a price slump late last year. As demand has been much stronger this year, major CD-R disc makers have tried to boost prices.CD-R prices, once as low as around US$0.15 per disc last year, are currently at around US$0.18-US$0.19. The prices are expected to grow to US$0.20-0.21 in the second half of this year, the companies said.Source: DigiTimes