Since posting a lackluster gross profit of only 2.6% in the third quarter of 2008, Inventec has actively managed to improve its operation efficiency by means of stringent cost control. And such efforts have paid off, as the firm has effectively pushed up its gross profit rates in the fourth quarter of last year.

 

Also, Lee points out that the resilient performance in notebook PC shipments in recent months has further put his company's business operation back on track, and the sales revenue for the second half of the year is very likely to exceed that of the first half. In February, the firm earned NT$30.65 billion (US$876 million at US$1: NT$35) in sales revenue, representing a 47% growth from a year earlier.

 

However, he indicates that the shipment of netbook PCs is expected to contribute 15% to the total this year, which would probably compromise revenue growth in the year, due mainly to low prices of such products. In the meantime, sales growth in servers, the biggest contributor to the firm's profits among notebook PCs, software services and mobile communications, may stall in the year.

 

On the other hand, Inventec has focused on vertical integration in notebook PC production, and recently activated a new joint venture between the firm and Singapore-based Haun Hsin Holdings Ltd. The venture, with Inventec controlling a 49% stake, will start production of notebook PC cases and injection molding in the second half of this year.