Delta Announces Bearish Operation

Taipei, Aug. 20, 2008 (CENS)--Delta Electronics Inc., the world's No.1 power-supply maker, had after-tax net income of 5.4 billion (US$175 million at US$1:NT$31), or NT$2.48 per share, throughout the first half this year, with its net income for last quarter reaching NT$2.8 billion (US$91 million at US$1:NT$31).

The company's chief executive officer (CEO), Yancey Hai, forecast his company's revenue and earnings for the current quarter to exceed that in the second quarter results.

Affected by poor product mix, surging commodity prices, and making employee bonus a regular corporate expense, the company's gross profit rate for last quarter dipped to 17% from 18.5% reported a quarter earlier. Hai said second quarter gross would be the company's worst gross of this year since commodity prices had begun dropping.

The company had consolidated revenue totaling NT$36.2 billion (US$1.1 billion) or so last quarter alone, increasing 8% from first quarter this year.

Hai noted power supply would remain the company's major growth driver this year, with products for LCD TVs leading the way. The company is the world's only supplier of ODM-based power supplies for the TVs. So far, Sony, Samsung, Sharp, Toshiba and Philips have contracted the company to supply built-to-order TV power supplies. Hai said his company would ship 20 million such units throughout this year as planned and expand output capacity at its factory in Wuhu in mainland China.

Although the company has diversified into flat-panel TV, cold cathode fluorescent lamp, thermal-dissipation, flat light source, solar-cell, auto electronics, energy-saving lamp, and fuel-cell segments, power supply still accounts for 59% of its revenue.

Hai announced that his company would branch out into LED-wafer and LED-chip manufacturing, challenging Epistar and Formosa Epitaxy.