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Weak July earnings for most motherboard makers

Posted on Wednesday, August 11 2010 @ 16:30:47 CEST by

DigiTimes reports most major motherboard makers posted weaker-than-expected revenues in July 2010. Asustek saw its revenue rise by 14.59 percent year-over-year, while Pegatron, Gigabyte, MSI, and ECS reported declines of 26.7 percent, 12.95 percent, 14.81 percent and 22.69 percent, respectively.

The site heard Asustek is still focusing on digesting its inventories, and that the company suffered from a high overstock of components and wild fluctuations in the value of the euro.
Since Asustek is still focusing on digesting its PC inventories, the company's revenues in July were less than expected, but the company still saw an on-year growth of 14.59%. The company's combined revenues from January to July reached NT$168.26 billion, up 58.39% on year.

Asustek shipped about 10.4 million motherboards in the first-half, but the company is unlikely to achieve its goal of shipping 25 million units in 2010.

Rumors that Asustek still has a high overstock of components and suffered losses of about NT$200-300 million from euro fluctuations are still circulating in the IT market, prompting most most market watchers to take a conservative attitude toward the company's third quarter performance. Asustek plans to hold an investors conference on August 13 to clarify the rumors.



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