Inventec post record 2007 profits, but lose out on iPod orders

Taiwan-based manufacturer of electronic products, Inventec Appliances, has reported its 2007 results, with record profits of NT$3.25 billion (US$107.6 million). This represents a 58% on year increase in profits, and is equivalent to NT$7.04 per share, compared to NT$4.46 in 2006.

Gross margin also improved, up from 7.3% in 2006 to 10.3%. This improvement was attributed to increased operating efficiency and a better product mix.

Revenues, however, have seen a successive decline for two years running. 2007 consolidated revenues were NT$92.65 billion, 12% lower than in 2006.

However, because Inventec is a main supplier for both TomTom and Palm, the company is hoping that revenues will be back on track this year. PND shipments to TomTom are projected to top 7 million units this year, compared to 4.5 million units in 2007.

This increase in revenues due to PND orders is likely to be offset by a decreasing number of orders from Apple for the iPod classic. This is projected to cause a 40% on-quarter decline in revenues for the first quarter of 2008.