First-tier notebook maker Compal Electronics has posted consolidated revenues

Compal sees both revenues and shipments increase in September
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(Yen-Shyang Hwang, Taipei; Joseph Tsai, DIGITIMES [Monday 12 October 2009] )

First-tier notebook maker Compal Electronics has posted consolidated revenues of NT$67.35 billion (US$2.09 billion) and notebook shipments of 4.15 million units for September of 2009 with both figures being new historical highs for the company.

Compal’s September consolidated revenues were up 21.6% on month and 45.6% on year thanks to increased notebook orders for the upcoming year-end holiday season. Record September revenues also helped the company accumulate consolidated revenues of NT$412.07 billion for the first three quarters of 2009, an increase of 29.4% on year.

With Compal totaling 10.55 million notebook shipments in the third quarter, and 24.75 for the first three quarters of the year, the company has internally increased its shipment forecast for the year from the 32-35 million units previously forecast to 35-36 million units, according to market watchers.

Although Compal expects its notebook shipments will continue to grow on month in October, shipments will start dropping in November due to seasonality. However, the company still forecasts its fourth-quarter shipments will increase 10% to 11.6 million units, according to sources at Compal.

Compal rival Quanta Computer is also expected to ship about 11.6 million units in the fourth quarter, an increase of 20% sequentially, and the two companies will vie for the top spot for the fourth quarter among Taiwan notebook makers.

Compal also noted that the recent tight supply of notebook components including optical drives, GPUs and DRAM will only have a minor impact on its shipments in October.

Source: Digitimes

Compal Electronics shipped about 3.9 million notebooks in September

Compal beats Quanta to take top spot among notebook makers in September
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(Max Wang, Taipei; Joseph Tsai, DIGITIMES [Wednesday 7 October 2009] )

Compal Electronics shipped about 3.9 million notebooks in September, outperforming Quanta Computer and its 3.6-3.8 million units, due to stable orders from vendors such as Dell and Acer, according to market sources.

Behind the two leaders was Wistron, which benefited from Lenovo and Acer orders, shipping 2.4-2.5 million notebooks in September. Inventec shipped 2-2.1 million units thanks to orders from Hewlett-Packard (HP) and Toshiba.

For the third quarter of 2009, Quanta shipped 9.7-9.9 million notebooks, Compal shipped 10.4 million units, Wistron shipped 6.9-7 million units and Inventec shipped 6.3-6.4 million units.

The makers are optimistic about their performance for the fourth quarter as the notebook market is entering the peak season and Microsoft will launch its Windows 7 operating system. The makers expect shipments in the fourth quarter to increase around 10% or even more sequentially.

Source: Digitimes

Compal surges on reports of sales of flat-panel affiliate

Compal surges on reports of sales of flat-panel affiliate

Shares of Compal Electronics Inc outperformed its local peers on Oct 2, after a Taipe Times reported that the world’s second-largest contract notebook maker was selling shares in an affiliated flat-panel company to strengthen its balance sheet.

Compal’s share price rose 3.11 percent to NT$38.15 in Taipei trading, outpacing the electronics sub-index and the main bourse, which fell 1.79 percent and 1.77 percent respectively.

The Chinese-language Commercial Times Taipe Times reported on Oct 2 in a front-page story that TPO Displays Corp Compal’s affiliate under the Kinpo Group, which is headed by Rock Hsu — was in talks with Innolux Display Co for a share swap deal.

The report, without citing sources, said Innolux — a flat-panel making unit of Hon Hai Group, which is led by Terry Goup — was likely to acquire TPO by exchanging between 6.5 and 8.5 shares of TPO with one of its own shares, the paper said. The two sides are expected to finalize the terms of the deal sometime next week, it said.

Hsu, the chairman of Kinpo, could not be reached for comment as he was visiting China.

TPO and Innolux manufacture about 10 million small and medium-sized flat panels a month, with Nokia accounting for more than 50 percent of orders in each company, the paper said.

Shares of TPO Displays closed down 11.5 percent at NT$6 on the smaller Emerging Stock Market, while Innolux shares picked up 0.25 percent to NT$40.65 on the Taiwan Stock Exchange.

Eric Lai, an analyst at Marbo Securities Consultant Co, said the report helped boost Compal shares as the notebook computer maker was expected to benefit from the deal with Innolux.

“If realized, the deal will help Compal exit the flat-panel competition gracefully while strengthening Hon Hai’s ambition to expand in China,” Lai said by telephone.

Lai said Compal stocks were also boosted by investors’ upbeat view about the company’s revenue growth in the third quarter, which will be disclosed later this month.

Because of larger orders from Hewlett-Packard Co, Acer Inc and Lenovo Group Ltd, a Citigroup analyst yesterday revised up her estimates of Compal’s notebook shipments last month to 3.85 million units last month, from her prior estimate of 3.5 million units.

“A strong September [performance] could raise Compal’s 3Q NB shipments by 29 percent quarter-on-quarter … exceeding its guidance of 20 percent-plus growth,” Citigroup analyst Eve Jung  wrote in a client note yesterday.

For this year, Compal could ship 35.5 million notebook computers, Jung said. This compares with an estimate of 32 million to 35 million made by company president Ray Chen earlier last month.

Total shipments of 35.5 million units would translate into growth of 39 percent year-on-year, better than its peers’ average forecast growth of 31 percent, Jung said.

Citigroup rated Compal its top pick among local contract notebook makers, raising its target price to NT$48 from NT$45. The bank cited Compal’s strong sales momentum, stable margins and narrowing losses from long-term investments in TPO and Vibo Telecom Inc, the nation’s smallest mobile telecom operator.

Source: Taipe Times

Wavesat's 4G chip set to power its mobile WiMAX products

Compal Communications, an ODM specializing in handheld devices, has chosen Wavesat to co-develop products for its Mobile WiMAX product line, starting with a USB dongle.

The collaboration leverages Wavesat’s multimode Odyssey 8500 4G Broadband chipset, which handles multiple broadband wireless technologies including WiMAX Wave2, XG-PHS, WiFi and seamless migration to LTE.

The Odyssey chipset features a 4G multi-core architecture incorporating multiple ultra low power DSPs, offering flexibility, high performance and low power consumption, without any tradeoff.

Manufactured using advanced embedded DRAM technology, the chip requires no external memory, which saves real estate, cost and power consumption for very small form-factor portable and mobile applications such as wireless USB dongle, mobile handsets and other consumer electronic devices.

Two weeks ago, Wavesat announced a design win for the same chip but to implement XG-PHS. More information is available at Willcom taps Wavesat for XG-PHS broadband .

Compal Electronics won the major contract of Syntrax Brillian

TEMPE, Ariz.–(BUSINESS WIRE)–April 3, 2008–Syntax-Brillian Corporation (Nasdaq:BRLC) today announced that it has formed a strategic contract manufacturing partnership with Compal Electronics (TSE:2324), the world’s second largest producer of laptop PCs for Tier One global partners.

Under the terms of the agreement, Compal will immediately begin manufacturing an initial order for 300,000 Olevia LCD HDTVs at its two-million square foot production facilities in Kunshan, China. In addition to providing assembly, testing and quality control services, Compal’s procurement team will be responsible for sourcing and securing the LCD panels used to produce Olevia LCD HDTVs.

Taiwan Kolin Co., Ltd. (TSE:1606), a key strategic alliance partner of Syntax-Brillian’s since the company’s inception, will continue to leverage its substantial network of suppliers to assist Compal in acquiring all other key components used to manufacture Olevia LCD HDTVs. DigiMedia Technology Company, Ltd., a subsidiary of Taiwan Kolin and co-developer with Syntax-Brillian of Olevia LCD HDTVs’ patented technology, will expand their responsibilities to support Compal with engineering support and manufacturing continuity.

“This agreement with Compal takes our existing relationship to a vastly enhanced level,” said James Li, President and Chief Executive Officer of Syntax-Brillian. “It not only supports our supply chain management strategy for reducing costs and optimizing cash flow, but it is a key example of our determination to improve the overall efficiencies of Syntax-Brillian.”

“The alliance with Compal, combined with major existing alliances with Taiwan Kolin and Digimedia, further bolsters Syntax-Brillian’s supply chain management continuity, engineering expertise, manufacturing proficiency, and financial strength in producing Olevia LCD HDTVs,” said Christopher Liu, Chairman of Taiwan Kolin.

“This business relationship with Syntax-Brillian is an important milestone in support of our three-year goal to become the largest LCD TV and notebook EMS manufacturer worldwide,” said Ray Chen, President and Chief Executive Officer of Compal Electronics. “To achieve this target, we announced the ground breaking of a four million acre ‘Compal Industrial Park’ in Northern Vietnam in which over 300 leading component suppliers and companies from Taiwan and China will join forces with us to support our mission in the dynamic LCD HDTV industry.”