PVI Budgets NT$4.5 B. for Output Expansion This Year

Taipei, April 7, 2011 (CENS)--Optimistic about the prospects for the e-book reader market, the Taiwan-based Prime View International Co., Ltd. (PVI), an e-paper display producer, has decided to hike to its budget to NT$4.5 billion for expanding the output of e-inks and e-papers this year, according to the company.

Riding on the emergence of e-book readers over the past years, the company has developed into one of the world's leading suppliers of e-paper displays. It optimistically expects global sales of the mobile device to double from last year to over 20 million units this year, with the growth mainly led by consumer demand in the U.S. and Europe.

To firmly seize the business potential, the company plans to further raise its capital expenditure to boost in-house capacity and invest in its upstream suppliers of e-inks and downstream partners of e-paper modules to strengthen the supply chain. By the end of this year, the company's overall output of the two products will surge two to three-fold from last year.

Affected by seasonal factors, the company's sales revenue for February declined 26% to NT$2.84 billion from NT$3.88 billion posted in January. But, having gained growth momentum from strong shipment of FFS (fringe field switching) panels, the company is expected to see its revenue rebound in March. Meanwhile, FFS panels will serve as another revenue drive for the company this year due mainly to growing popularity of tablet PCs, which will help it offset declines in sales of e-paper and e-ink in the second quarter when the segment shrinks on seasonal factors.

Hopefully, the firm's revenue for the first quarter of this year will reach the level of NT$10 billion, estimated by institutional investors. They have also projected the company's second-quarter revenue to remain unchanged or slightly drop 5-10% from the first quarter.