CMC Magnetics' surge in revenue for July and August are already enough to cover a net loss of NT$282 million (US$8.5 million) posted for the first half of this year with profitability for this month expected to hit a record high level, according to report by the local media Central News Agency in an interview with company chairman Robert Wong.
CMC currently enjoys full utilization of its production capacity and expects the percentage of total revenues for DVD discs to keep rising to 70% and that for CD-R discs to fall to 30% at the end of this year, Wong pointed out. Of CMC's present DVD+R/-R disc production capacity, 8x discs account for 60-70% and 16x discs for 30-40%, but all of the 8x capacity will be devoted to making 16x discs by the end of the first quarter of 2006 to meet growing demand, Wong noted. In addition, CMC has recently begun volume production of 8x DVD+R DL (single-sided double-layer) discs, with initial monthly shipments of 1-2 million discs.
The global demand for DVD discs will grow from 4.0 billion discs this year to 6.0 billion in 2006 whereas that for CD-R discs will drop from 9.5-10 billion discs to 8.5-9.0 billion, Wong estimates.
Story source:
digitimes.com.
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