Motherboard maker Epox expects to return to profitability

Taiwanese second-tier motherboard maker Epox Computer expects to return to profitability in 2004, buoyed by increased shipments of motherboards, Bluetooth devices, industrial PCs (IPCs) and newly developed products like graphics cards and barebone systems, company chairman Steve Hsiao said during a recent interview with DigiTimes.

Epox operated at a loss in 2003, although the company's operating margin climbed to 8% in the fourth quarter, Hsiao said. The company estimated 2003 revenues at NT$3.63 billion. The operating margin will be maintained at around 8% on targeted revenues of NT$5 billion in 2004, but Epox is expected to start generating profits because the company has managed to cut its operating costs by outsourcing about 70% of motherboard production to contract manufacturers, compared with 30% a year ago, Hsiao said.

Over the past year Epox has also reduced the number of its employees from 500 to 230 and its monthly management and marketing expenses have dropped from NT$32 million to NT$25 million, Hsiao added.

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News source: DigiTimes

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