Taiwanese Contract Suppliers Benefit From Microsoft Xbox 360 Game Consoles

Taipei, Nov. 16, 2005 (CENS)--Cheng Uei Precision Industry Co., KYE Systems Corp. and Ji-Haw Industrial Co., Ltd. Are expected to see earnings for this quarter hit new highs in anticipation of hot sales of Microsoft's Xbox 360 game consoles in the upcoming Christmas shopping season.

Boosted by the estimates, Cheng Uei's and Ji-Haw's market values hit new highs along with their share prices surging remarkably on Nov. 14, when Taiwan's weighted share price index increased only moderately. Xbox 360 will hit the market in barely 10 days to date.

Cheng Uei's executives pointed out that the company's revenues have risen month by month since August, when it began offering the game console's connectors. Last quarter alone, the company's revenue of NT$7.6 billion (US$230 million at US$1:NT$33) represented a new high, soaring 37% from a quarter earlier. The company expected its revenue for this quarter to set another high based on orders swarming currently.

Ji-Haw had pre-tax earnings of NT$100 million (US$3 million) in the third quarter, higher than the total earnings it registered throughout the first half this year. The company's executives said that Xbox 360 rollout would help fuel demands for electronics components this quarter and, thus, be conducive to boosting their company's revenue and earnings for this quarter.

In reaction to Microsoft's upcoming rollout, Sony plans to introduce competing product PS3 next year. Industry watchers estimate Hon Hai Precision Industry to be the major beneficiary of PS3s from Sony's orders to it for electronic components for the machines.