Compal reports fall in net profit due to lower gross margin
Oct 27, 2004
Despite a record-high shipment of notebooks, net profit dived from the previous quarter as cutthroat pricing cut into margins Despite shipping a record 2.01 million notebook computers in the third quarter, Compal Electronics Inc, the world's second largest laptop maker, yesterday said net profit in the period dived by 43 percent quarter-on-quarter. Compal, seen as one of the barometers of the nation's PC industry, reported net income of NT$1.5 billion in the July-September period, or NT$0.45 earnings per share, down from NT$2.65 billion in net income, or NT$0.91 earnings per share, a year ago. Ray Chen, president and CEO of Compal, attributed the quarterly decline to price wars unleashed by local manufacturers competing for orders, which cut into gross margin. The company's margin for the third quarter was 5.7 percent, down from 6.41 percent in the previous quarter. Source: Taipei Times
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