BenQ posts 6th straight quarterly loss

27 Apr 2007

(Associated Press via NewsEdge) Taiwan's BenQ reported its sixth straight quarterly loss on a further decline in handset sales and increased interest payments.

In parallel, it said it would spin off its branded operations to focus on contract manufacturing.

The company reported a net loss of NT$ 1.76 billion ($53.3 million) for the three months ended March 31, down from a net loss of NT$5 billion ($150 million) in the year-earlier period.

Higher interest payments and falls in phone sales hit the company's first-quarter performance, said David Wang, a BenQ VP, during an investors' conference.

'We are still suffering from losses in the mobile-phone portion of our operations, but the other operations are healthy,' he said.

BenQ's string of quarterly net losses followed its takeover of Siemens' handset-making division in late 2005. The company had difficulty integrating the loss-making unit, eventually liquidating it, which reduced its handset output.

As well as handsets, BenQ makes flat-panel monitors, televisions and digital cameras.

In a restructuring, BenQ said it will spin off its BenQ-branded operations in September, when it will rename itself Jia Da and focus on contract manufacturing.
The spun-off operation will continue under the BenQ name, the company said.

© 2007 The Associated Press

© 2007 Dialog, a Thomson business. All rights reserved

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