Lite-On IT, the largest Taiwan-based maker of optical disc drives (ODDs), on October 25 reported its financial results for the third quarter of this year, posting a very small net earnings per share (EPS) of NT$0.033. The company also announced it has decided to stop production of consumer ODDs, mainly DVD recorders, to be sold under its Liteon brand in the global market, while keeping OEM/ODM production of such products.It really isn't clear whether this includes all of Lite-On's ODD products or just their DVD recorders. If you'd like to read more, head on over to DigiTimes.
Lite-On IT's average gross margin dropped from 16.7% in the first half of this year to 13.2% last quarter. Three main reasons for this were the following: the ongoing integration of Lite-On IT's own operating resources with those of BenQ's ODD business unit (acquired by Lite-On IT in April 2006); delays in R&D works on Blu-ray Disc drives, slim-type ODDs and Xbox ODDs; losses due to consumer returns of own-brand DVD recorders sold through the Wal-Mart chain, according to company CEO Danny Liao.
Update - Thanks to the Dutch website, Tweakers.net, we've learned that this only applies to Lite-On's standalone DVD recorders. Here's a translation (thanks RJW):
A moment ago Dutch Lite-On IT have communicated us that the source article of DigiTimes contained an incorrect reproduction of the facts. The brand Lite-On is still alive. Lite-On will definatly not stop with selling dvd - and cd-burners under its own brand, thus spokesman Maarten Souren. Only the standalone dvd-recorders that are sold under the lite on brand, will be removed from the Lite-On-catalog according to him.So there you have it. Lite-On will continue to produce PC-based CD and DVD writers.
