|Issued on : 06-05-2003|
|Bid for GreTai Securitities Market (GTSM) Listing in Q2 Next Year|
|With rapid growth in the DRAM module and flash memory segments, professional DRAM module vendor ADATA Technology Co., Ltd. ended its first quarter with a sales revenue of NTD$2.55 billion and net income of NTD$80 million. After its capital increase to NTD$390 million, ADATA’s EPS is now NTD$2. ADATA has already appointed SinoPac Securities to handle its application for GreTai Securities Market (GTSM) listing in Q2 next year.|
Last year,ADATA’s total capital was NTD$265 million with a net income of NTD$6.8 billion. Being the most profitable DRAM module company in Taiwan, ADATA’s EPS before taxes was NTD$13.05. The Board of Directors had decided to pay a dividend of NTD$8, including a NTD$5 stock dividend and a NTD$3 cash dividend, increasing ADATA’s total capital to NTD$390 million. After successfullyventuring into the flash memory and TFT-LCD display markets with its new product lines, ADATA’s sales revenue is expected to reach NTD$10 billion this year.
Main Market is the Overseas Market
90% of ADATA’s sales revenue last year came from DRAM modules, but this year it would <> reduced slightly from 80% to 83%. Flash memory will take up about 15% to 18% of ADATA’s sales revenue this year, approximately NTD$1.5 billion, while the weight of TFT-LCD displays is still relative low. ADATA’s market is mainly overseas; through local distributors, ADATA sells it’s own branded products with the brand name “ADATA” to more than 500 customers worldwide, among which 300 have business transactions with ADATA frequently. For the domestic market, ADATA’s products are sold through JSI.
ADATA’s Chairman, Simon Chen, says because of its high price fluctuation, DRAM module vendors have to take very high risks. ADATA’s success can be associated with its expertise in funds management and inventory control. A lot of times, ADATA’s funds can turnover 4 to 5 times; for example, last year ADATA’s total capital was NTD$265 million, with a net income of NTD$684.5 million, equivalent to 26 times <>its capital. 80% of ADATA’s transactions with its customers are done through cash or documentary credit. Usually only motherboard companies listed on the Taiwan Stock Market are given 1 to 2 weeks for Account Receivables; others are collected within 4 to 5 days. Inventory is kept at 5 to 7 days when prices are stable.