Disc Drive Maker Lite-On Eyes 20% Revenue Growth in Q4

Taipei, Sept. 3, 2012 (CENS)--Lite-On IT Corp. of Taiwan, maker of optical disc drives, registered net earnings of NT$704 million (US$23.5 million) in the second quarter, up 47.6% quarter-on-quarter (QoQ), earnings per share (EPS) of NT$0.7 (US$0.02), with first-half cumulative EPS of NT$1.2 (US$0.04).

Danny Liao, Lite-On's CEO, said the company's third-quarter operation is expected to remain flat, but grow about 20% in the forth quarter due to explosive demand for Windows 8 PCs.

Lite-On has been aggressively exploring the super-slim disc drive market in recent years, hence enjoying steady sales growth, despite declining shipments of half-height drives for desktop PCs. Together, the two types of drives account for about 70% of corporate revenue.

To counter sliding demand for disc drives due to popularization of tablet PCs and ultrabooks, Lite-On diversified into Solid State Drive (SSD) two to three years ago. According to Liao, the company's SSD business division began turning profitable in the first quarter this year, with second-quarter revenue increasing 80% QoQ, and profits up 600% QoQ. Lite-On's SSD business is expected to continue growing in the third and fourth quarters, the CEO said.

Automotive disc drives also drive Lite-On's operations, having begun generating profits this year despite losses in the past few years. The company has set up a foothold in Europe to directly serve international automakers in the region.