Taipei, Taiwan, November 15, 2011 -
Well Communication Corp., a leading supplier of network communication
in Taiwan. The new plant located in Lung-Tan is in its final stages
of establishment. Its production capacity was built to meet the
demand created from future IA and broadband products. In the first
stage, there will be 4 SMT high-speed production lines installed
and it is expected to go mass production in February 2001.
Well Communication is specialized in
network communications. The current production lines include 2 categories
of data communications and information appliances. Analog modem,
ISDN, ADSL, Cable Modem, etc are grouped into data communications
products. STB and STB modules are part of IA products. The revenue
shares are 48.85% and 51.15% respectively. Gary Wang, the President,
said" There will be 10% growth in 2000 over 1999 for Well Communication
due to serious shortage of main components plus price cuts resulting
from keen competition on conventional modem products. As Well Communication
always stress order quality, the company would never join the cutthroat
competition. The company will safeguard shareholder's interests
and stick to maintain the operation. Although the revenue growth
is only 10%, the gross profit rate remains at an index of 10%. "
The revenue of 2000 will reach NT$2.7 billion, with pre-taxes earnings
at NT$ 65 millions, totaling an EPS of NT$1.20. The accumulated
revenue is up to NT$2.1 billions in October and pre-taxes earnings
of the first taxes totalizes NT$44 millions, converted into EPS
of NT$0.81. The NT$1.04 EPS target set to this year is expected
to be attained.
The arrival of the post PC era, the
Internet capability is a required skill for everyone. In 1998, in
view of the slide of gross profits in the Modem market, Well Communication
entered aggressively in the IA products field to explore in technical
application levels and to promote added value. The company cut into
IA market with STB. The STB is split in the transmission level in
2 categories, one with a built-in 56K modem and the other consists
of a 10M Ethernet adapter thus, connecting to the broadband (ADSL
or Cable Modem) through an Ethernet interface. The customers of
the former are mainly consisted by telecommunication companies or
ISP, while the later is mainly consisted by system integrated companies.
The STB introduced this year by Well Communication is within strategic
cooperation with KCOM and has already being introduced into the
Japanese market. The shipping volume is growing gradually. Since
the growth of the STB market lags 6 months from the original estimation
of experts, the contribution of STB will be shown in 2001. Well
Communication is also negotiating with major Japanese appliances
firms in OEM/ODM form to develop a new generation of STBs. The new
generation will enhance the audio and video function to meet the
Internet demand in the broadband network multimedia age.
The new plant of Well Communication
located in Lung-Tan is soon to be completed. The investment of its
new plant amounts US$ 15 millions, including land and plant construction.
It locates at Kung-5 Road of Lung-Tan County. The plant has 5 floors
above ground and one basement of 26,371 sq. ft. totaling floor space
of 148,391 sq. ft. The plant can accommodate 8 high-speed SMT (Surface
Monitoring Technology) production lines. There will be AS/RS (Automated
Storage/Retrieval system) and SFM (Shop Flow Management) System.
Currently the plant is in the equipment installation stage and will
perform its trial production by the end of the current year. In
the initial stage, it will expand to 4 high-speed SMT production
lines and it is expected to go mass production in February of 2001.
The production capacity of the Lung-Tan plant has as a mission to
meet the demand of future IA and broadband products..