Date:21Jun.2006
The CMS business achieved an 85.7% increase in revenue as compared with the first six months of the financial year 2006, to US$131.3 million. As a result, the business accounted for 18.4% of Group revenue and its performance once again far exceeded that of the global Electronic Manufacturing Services industry, which grew by some 14%* during the first half of the calendar year 2006.
The growth in revenue came across the board, but was primarily supported by strong demand from existing customers in the areas of switching mode power supplies and professional audio equipment, as they attracted significantly more business.
VTech competed strongly on both price and service. Despite the surge in production volumes and effective cost controls, service levels remained high. In the first half of the financial year 2007, the business was given a ¡°Partner of the Year 2006¡± award by a professional audio equipment customer, in recognition of VTech¡¯s outstanding service and level of support given to the company¡¯s business development.
Europe remained the leading source of revenue for the CMS business, presenting 51.1% of the total CMS revenue, followed by North America at 33.8% and Asia Pacific at 15.0%.
* Source: Manufacturing Market Insider ¨C Oct 2006 issue
To cope with the growth in demand for the CMS business, the Group will add a new factory building at its existing plant in Liaobu, Dongguan, increasing the size of the CMS manufacturing facilities by 50%. The new facility is scheduled to open in April2007.