CMS achieved an increase 7.9% growth in revenue and reached turnover of $281.3 million.

Segment Results

North America
CMS saw sales improve sharply in North America in the second half of the financial year, following a decline in the first half. As a result, revenue increased by 7.0% to US$122.4 million. Professional audio equipment, where our reputation continues to grow, saw further sales increases from existing and new customers.

Europe
Despite a strong pick up in the second half, CMS revenue in Europe declined slightly by 2.0% to US$115.8 million for the full financial year. Demand for switching mode power supplies and wireless products was impacted by the economic contraction in the region. However, we continued to see gains in professional audio equipment as existing customers increased orders.

Asia Pacific and Other Regions
CMS exhibited similarly strong growth with sales rising by 52.9% to US$42.8 million. Growth was mainly driven by a customer in the area of solid state lighting. VTech worked with the customer to develop and produce its new range of LED light bulbs for home use and played a significant role in launching the new products on the market on time.

Outlook

North America and Europe
The global electronic manufacturing service industry is forecast to remain on an uptrend in the financial year 2011 and our CMS will continue to outperform the market. With an established reputation in the professional audio industry, we expect to gain additional business from both existing and new customers in North America and Europe. Switching mode power supplies will see growth opportunities in the new business areas of solar power inverters and electric vehicle chargers.

Customers are increasingly aware of the efforts we have made in improving the working conditions for our workforce. The operations of CMS are in full compliance to the international standards SA8000 and OHSAS18000. These certifications demonstrate the commitment of CMS in the areas of social accountability and occupational health & safety. This commitment differentiates CMS from the competition and will enhance our growth prospects in the coming years.

Asia Pacific and Other Regions
For CMS, we see good opportunities to build on our success in solid state lighting for the Japanese market. As the performance of the LED light bulbs is superior to that of conventional light bulbs, we are seeing rapid consumer adoption of the new technology. As a result of keen competition in this emerging business segment, tremendous price erosion is expected in the next few years. CMS will work closely with our customer to accelerate cost reductions through new product designs and process automation, so as to improve profit margins through the strong partnership.