Taiwan networking device makers see profits rebound remarkably in 1H16

A number of Taiwan-based networking device makers, including Accton Technology, Arcadyan Technology, Gemtek Technology, Alpha Networks and SerComm, have seen their earnings improve remarkably so far in 2016, buoyed by their efforts to consolidate business operations and product lines, according to industry sources.

Arcadyan led all other fellow companies with a net profit surge of 890% on year to NT$780 million (US$24.67 million) in the first half of 2016. Alpha saw its earnings soar 480% to NT$389 million; Gemtek’s hiked 250% to NT$208 million; Accton’s jumped 162% to NT$877 million; and Sercomm’s increased 26.36% to NT$628 million.

High-margin orders from new clients helped ramp up earnings at Arcadyan in the first half, while Gemtek and Alpha saws their profits improve simply by giving up the production of some low-margin items, said the sources.

Increasing shipments of high-margin OCP (Open Compute Project)-based datacenter-class switches helped push net profits and EPS at Accton during the January-June period, indicated the sources. Datacenter switch products currently account for 20–30% Accton’s total revenues

Meanwhile, SerComm has seen its sales and profits continue to move upward by expanding its product portfolios to include smart household devices (gateways), smart-home security and surveillance products, and small cell network products.

SerComm has been focusing on developing devices for small cell networks in recent years and will continue to commit new investments in the segment, said company president and CEO James Wang.

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