Simplo obtains Dell orders for NB battery

Taipei, Dec. 22, 2003 (CENS)--Simplo Technology Co., Ltd., one of Taiwan's leading manufacturers of batteries for notebook personal computers, recently announced it has acquired orders from the U.S.-based Dell Computer Inc.

Simplo said a type of its newly developed batteries has passed certification by Dell and the certified products will be soon delivered to the U.S. firm. The company estimated it would be able to ship over 1.2 million NB batteries to Dell next year as it would largely ship three new types of NB batteries beginning from the second or three quarter of next year.

The company estimated it would ship 2.4 million NB batteries to Hewlett Packard this year, accounting for 44% of its total shipments of 5.25 million units. The company anticipated it would see shipment grow to 8.6 million NB batteries next year

With the orders from Dell and Hewlett Packard, Simplo vows to become the world's second largest manufacturer of NB batteries next year, with its global market share to expand to between 18% and 20% from the existing 13.8%.

Simplo president F.H. Sung has great ambition to bring his company to become the world's largest manufacturer of NB batteries in 2005.

A domestic institutional investor estimated Simplo will post NT$6.6 billion (US$194.11 million at US$1:NT$34) and NT$7 (US$0.2) in total sales and earnings per share, respectively, this year. The company's EPS is expected to post NT$9 (US$0.26) next year.

Simplo's Taiwan plant posted revenue of NT$5.9 billion (US$173.52 million) in the first 11 months of this year, with gross profit rate reaching 10.6% and earnings per share, NT$6.3 (US$0.18). The company's Taiwan plant currently has a quarterly production capacity of 900,000 NB batteries and the capacity will remain unchanged next year.

To meet the influx of orders, the company will expand production capacity in mainland China in the beginning of next year. With the output expansion, the company's mainland plant will see quarterly output increase to 2.1 million NB batteries in the third quarter of next year, compared to the existing 1.8 million.

Sung estimated his company will post NT$8.8 billion (US$258.82 million) in total sales next year.