5 March 2008
With the exchange rate of NT to US dollars having increased to 30.95, most Internet communication device makers expect revenues will be affected by around 1-3% in the first quarter of 2008, while the impact on profits is still unclear.
D-Link has calculated that every one cent increase in the rate of NT dollars will lead to an approximate 0.3% affect on revenues. With the NT dollar gaining around three cents in recent time, the company's revenues have taken a 0.9% hit. However, since the company takes shifting exchange rates into account, it will not revise its earlier guidance that first quarter 2008 revenues are expected to drop sequentially between 5-10%. D-Link added that it is confident profits will not suffer from losses due to the exchange rate.
Gemtek Technology pointed out that its revenues will be affected by around 3%, while profits will be dependent on the exchange rate at a later time. The company expects its first quarter of 2008 gross margin will at least maintain the same as the previous quarter.
Although Cameo Communications has not made any predictions over its first quarter performance, the company expects the delayed shipments from January to February due to the heavy snows in China will help its February revenues surpass January's NT$835 million (US$27.02 million), and they may even surpass NT$900 million.
Gemtek also pointed out although the dropping exchange rate has put pressure on its revenues and profit, client demands to drop pricing have been eased a little after negotiations over the falling exchange rate.
