Inventec has released its financial report for the second quarter of 2014, recording consolidated revenues of NT$104.9 (US$3.5 billion), gross margin of 5.3%, net operating profit of NT$1.68 billion, net profit of NT$1.48 billion and net EPS of NT$0.41. Commenting on the reduced profits in the second quarter compared to the first, Inventec pointed out that the drop mainly resulted from exchange losses, but the company’s gross margin in the second quarter was better than the first and is expected to stay at around the same level in the second half.
Inventec expects 2-digit on-year growth in ODM server shipments in 2014 and more than 10% on-year growth in the corresponding revenue, the company said at a May 13 investors conference. Due to declining demand for consumer notebooks, Inventec said its total notebook shipments in first-quarter 2014 slipped sequentially. However, first-quarter shipments of servers, smart handheld devices and PV products all rose significantly, Inventec said.
Wistron and Inventec will begin ODM production of ARM-architecture servers for Hewlett-Packard (HP) in the second half of 2014, according to Taiwan-based supply chain makers. Some component makers will start shipping products for HP’s ARM-based servers in May. Although ARM solutions are unlikely to become an immediate threat to Intel, the sources believe the extra option should provide clients more leverage to bargain for better prices and more resources from Intel.
TAIPEI – Original design manufacturer Inventec Co. yesterday held the company’s earnings conference, reporting earnings-per-share performance of NT$1.97 over the course of 2013. Most notably, net income for the company last year improved by 251 per cent from the previous period, reaching NT$6.209 billion (S$258 million), profit margins of 4.9 per cent. Revenues for the company also saw a 12 per cent year-on-year growth at NT$461.092 billion.
Inventec will launch cloud computing-based storage solutions for SMBs in the Southeast Asia market in the third quarter of 2014 through cooperation with the Taiwan government-sponsored Institute for Information Industry and independent software developers, according to company senior advisor George Wang. In addition to Southeast Asia, Inventec will also extend its reaches to markets such as China, North America and Japan and expects to see some results by the second half of 2014. As for the plan to spin off its cloud computing application business into an independent subsidiary, Wang noted that it is a long-term plan, but the company so far has not yet had a firm schedule for it.