Senao acquires PBX order from Sears

Taipei, Dec. 11, 2003 (CENS)--By defeating rival world-class telecommunications firms, including the U.S.-based Spectralink, Senao International Co. has recently acquired a US$60 million order for private branch exchange (PBX) system from Sears, one of the top-three department store chains in the U.S.

Senao said the ordered PBX systems will be installed at Sears' 900-strong outlets around the U.S. In the foreseeable future, Sears will expand the installation of Senao PBX systems at its over 100 outlets in Canada and Mexico.

A portion of the Sears order was already filled in November, contributing NT$30 million (US$882,350 at US$1:NT$34) to Senao's overall sales. Senao touts PBX as one of its niche products with gross profit rate reaching 40%. Thanks to the shipment of the niche product, the company saw pretax earnings grow 111% annually in November to reach NT$55 million (US$1.61 million).

Over the past two years, Senao has seen fast growth in wireless communication products. In addition to the orders from Sears, Senao has obtained certification from mainland China. Recently the company is having talks with the mainland's foreign department store chains for cooperation. With its president P.T. Chiu visiting the mainland for several times, Senao boasted it would settle orders with mainland China's foreign department store chains sometime next year.

Senao has been contacting the fixed-line telecom firms of Southeast Asia to vie for the sales opportunities of wireless private automatic branch exchange (WPABX) systems to facilitate the last-mile construction.

The company noted it has acquired domestic wireless telecom certification for the high-marginal 2.4 GHz WPABX. The niche product will help the company generate handsome profits next year.

Senao estimated its sales of cell phones will amount to NT$13 billion (US$382.35 million) this year, accounting for 88% of Senao's total sales. Sales of self-developed WPBX and wireless local area networking products will amount to NT$2 billion (US$58.82 million) next year, accounting for 12% of total sales.

The company projected its sales of self-developed products will grow 20% to reach NT$2.3 billion (US$67.64 million) next year. But an institutional investor said the company will see sales of its self-developed products top NT$2.5 billion (US$73.52 million) next year.