e.Digital Corporation (fka EDIG)

[Tinroad]

Old but interesting re Eastech:

EastTech reports 44% H1 turnover growth
It aims to generate half of its revenue from Net-related products by 2002

By Toh Han Shih
21 Jul 2000

EASTERN Asia Technology (EastTech), reporting turnover growth of 44 per cent in the first half of the year, yesterday said it hopes to expand and make the most of its revenues from Internet-related products in a few years.

"By the end of 2002, we want half of our revenues from Internet-related products. Now Internet products account for less than 5 per cent of our revenues," the company's chairman Tim Liou said.

EastTech, a Taiwanese consumer electronics firm listed on the Singapore Exchange, posted revenue of $105.5 million in the first six months. It's profit was $2.1 million, twice that of the same period last year.

Since the company was founded 27 years ago by Mr Liou, it has been making audio and video products, starting with turntable record players. Recently it started marketing its first range of Internet-related products, MP3 players, which play music downloaded from the Net.

EastTech aims to launch by Christmas an Internet audio player, which can play Internet radio stations, Mr Liou said.

The Internet audio player will be able to play all Internet radio stations -- over 5,000 of them -- from all over the world and store 1,000 songs downloaded from the Net, he added. In contrast, normal radios can play only dozens of radio stations.

"We must move to Internet audio products to keep ahead of the times," Mr Liou said.

This year, the world's music industry is projected to hit sales of US$40 billion (S$69.8 billion), the bulk of it in CD sales; only 3 per cent of the sales will be from music downloaded over the Internet. By 2005, at least 60 per cent of music is expected to be downloaded from the Net.

"This trend has affected our strategy," said Mr Liou. As a result, the company last year invested heavily in research and development on Internet and DVD technology, as well as expanded its manufacturing facilities, he said.

Because of these investments, for the first half of last year, the company's after-tax profit was $1 million, a small fraction of its turnover of $73 million.

"This year is a natural reward for our heavy investments in R&D and expanded capacity last year. In consideration of the seasonal nature of our business, barring unforeseen circumstances, we expect the performance in the second half to be better than the first half," said Mr Liou.

Currently, he owns 80 per cent of EastTech. However, the company is in talks with strategic investors in Singapore, Taiwan and the US, he disclosed.

Mr Liou said he would not mind diluting his stake in his company but will want to retain control.

http://www.google.com/search?q=cache:573040426052f47d:biztimes.asia1.com/5/mkts/msing02.html+%22Tim+...