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Colin Dunstan · 11-10-2005, 05:48 AM

It's not that I am usually interested in the financials of a company like BenQ, but the dramatic drop in the company's net profit caught my attention. WSJ reports today that

BenQ's unaudited third-quarter net profit of 20 million New Taiwan dollars (US$606,000), or NT$0.01 a share, was down sharply from NT$1.38 billion, or NT$0.59 a share, a year earlier amid shrinking mobile-phone sales. It was the fifth consecutive quarter of decline in BenQ's earnings. Its handset sales have dropped since a manufacturing contract with Motorola Inc. ended in late 2004.

The horrible results are played down by analysts who argue that BenQ is still a new company and needs more time to shape its reorientation toward handset business. According to BenQ CFO Eric Yu, the company, which generated just 7% of its revenue from mobile-phone sales in the third quarter, expects handset sales to contribute 50% of revenue in the fourth quarter and onward.

11-10-2005, 05:48 AM	#1
Colin Dunstan Is papyrophobic! Posts: 1,926 Karma: 1009999 Join Date: Aug 2003 Location: USA Device: Dell Axim	BenQ's net earnings drop by 99% It's not that I am usually interested in the financials of a company like BenQ, but the dramatic drop in the company's net profit caught my attention. WSJ reports today that BenQ's unaudited third-quarter net profit of 20 million New Taiwan dollars (US$606,000), or NT$0.01 a share, was down sharply from NT$1.38 billion, or NT$0.59 a share, a year earlier amid shrinking mobile-phone sales. It was the fifth consecutive quarter of decline in BenQ's earnings. Its handset sales have dropped since a manufacturing contract with Motorola Inc. ended in late 2004. The horrible results are played down by analysts who argue that BenQ is still a new company and needs more time to shape its reorientation toward handset business. According to BenQ CFO Eric Yu, the company, which generated just 7% of its revenue from mobile-phone sales in the third quarter, expects handset sales to contribute 50% of revenue in the fourth quarter and onward.