Quanta Storage lands LG Philips's orders for digital photo frames

The Taiwan-based Quanta Storage Inc. landed orders from LG Philips for the third-generation digital photo frames, and is scheduled to start shipment in the fourth quarter of this year, becoming LG Philips's second supplier for such products, according to industry sources.

Besides, thanks to increasing market demand for slim DVD-ROM burners, Quanta Storage is very likely to see its sales revenues rise further to hit a new high for the second straight month in June.

Since venturing into sales of digital photo frames, LG Philips has been contracting Lead Data Inc. as its sole supplier of the products. However, with market demand for such products exploding, LG Philips decided to bring onboard a new supplier this year, and selected Quanta Storage to turn out the third-generation models.

Accordingly, Lead Data will continue to deliver digital photo cameras to LG Philips till the third quarter of this year, and Quanta Storage is poised to supply a total of 200,000 new models in the fourth quarter.

With Quanta Storage having landed orders for digital photo frames from LG Philips, a key player globally in the segment, institutional investors noted that this is helpful for Quanta Storage to win more orders for such products from other brands, as well as boosting its sales of the product line next year.

Incidentally, Quanta Storage has also been faring well in its slim DVD-ROM burner line. With makers of notebook PCs heavily adopting DVD-ROM burners, Quanta Storage posted combined revenues of NT$1.704 billion in May, up 15.35% from a month earlier and 63.82% from a year earlier, hitting a single-month high.

Furthermore, aided by its increasing shipment in June, Quanta Storage is likely to witness a new high for its combined revenues in June, enabling the company to be optimistic towards the industry for the third quarter of this year. Noteworthy is that the company is to adjust its shipment ratio between DVD-ROM burner and DVD-ROM combo driver lines to 65%: 35% for this year, from 60%: 40% set at the end of last year.

In fact, Quanta Storage's steadily growing sales is attributable to increasing market demand and diversified clientele, rather than exclusively Sony orders. Meanwhile, the company has completed R&D for slim blue-ray disc drivers, and plans to unveil new products at the end of this year, according to the company.

source & copyright: CENS