Aug 23, 2000

Ritek Corp., the world's largest CD-R maker, rang up revenue worth NT$11.9 billion in the first half, a 132% increase from the same period a year ago. In July revenue was only NT$2.01 billion, ending 36 straight months of record revenues.

The price of CD-Rs stopped declining in the first half, but most small and medium counterparts in Taiwan suspended production due to the fierce price competition from oversupply. Ritek expects its revenue will climb considerably in the 4th quarter as sales will enter the traditional peak season.

During the January-July period, the firm's pretax profit reached NT$5.5 billion, translating into earnings per share NT$4.68. The firm's first seven-month pretax profit reached 52.9% of its target of NT$10.38 billion for the year.

After massive R&D investment, Ritek's CD-R quality is on par with maker's, such as TDK. Ritek's compact-flash is now entering small production and the firm's Dataplay has already been delivered to the market, for example.

Presently, Ritek has 18 CD-RW production lines, but will expand to 20 by the end of the year, when production volume should hit 10 million units per month.

The firm will further increase its DVD and ITO (indium tin oxide) production volumes in order to meet increasing market demand. Several new products such as data players will be introduced in the market soon.