CMC Magnetics leads in global DVD+R, DVD-R production

Taipei, July 24, 2003 (CENS)--CMC Magnetics Corp., a leading CD-R maker in Taiwan, said yesterday that the firm has led in the global production of both DVD+R and DVD-R products and has maintained a gross profit rate of over 60% for such products.

Ong Ming-shien, company chairman, said that the demand for both DVD+R and DVD-R has been hectic in the market, which may last until the end of 2004. CMC expects to soon expand its production capacities and estimates its pretax profit will hit a new high of NT$8.2 billion for 2003.

CMC Magnetics spent about NT$1.6 billion on R&D in DVD+R and DVD-R products last year. This enables the firm to maintain the gross profit rate of over 60% for the above products.

Previously, CMC Magnetics predicted its DVD-R production capacity may reach 12 million units per month by the end of this year. The firm reached the target in June already, however, Ong said.

The local DVD+R maker delivered 15 million units in July. It may soon revise the production capacity to 30 million units per month by the end of 2003 if orders have increased.