cdanteek Posted August 5, 2008 Report Share Posted August 5, 2008 Taiwan`s 3rd-largest Optical-Disk Maker Applies for Corporate Restructuring article.... 2008/08/05 Taipei, Aug. 5, 2008 (CENS)--Prodisc Technology Inc., the world`s fourth largest and Taiwan`s third-largest optical-disk maker, filed for corporate restructuring yesterday (Aug. 4) and will exit the market, a move expected to give a relief to other makers in the line from the throat-cutting competition which has plagued the optical-disk market for five years. Two major beneficiaries of the development will be CMC Magnetics and Ritek Corp., the two leading Taiwanese optical-disk makers, which may be able to hike their prices for the second time this year in the fourth quarter and turn their operations into black in the quarter. Prodisc boasts a global market share of 11%, trailing CMC Magnetics, Ritek, and India`s MBI. Its exit, therefore, may reverse the glut in the market, which is suffering from 10% excess supply, thereby ending the bearish market which has lasted five years. Therefore, CMC Magnetics and Ritek may be able to raise their prices again in the fourth quarter, following the 10% hike in response to the increase in materials prices this month. As a result, Robert Wong, chairman of CMC Magnetics, pointed out that his company may be able to turn profitable in the fourth quarter, for the first time in many years, when many makers in the line have gone under. Following the implementation of the macro economic control policy in China, some 100 makers in the line have called it quit this year, helping to rectify the imbalance between supply and demand in the market. Prodisc blamed the prolonged sluggish market and the demand of high royalties by Philips for its decision to seek court approval of corporate restructuring and bankruptcy protection. The company revealed that its liabilities now top NT$8.6 billion. Prodisc pointed out that the provisional seizure of the company`s banking accounts by Philips for the controversy over royalty payment has dealt a serious blow to the company`s credit standing, inflicting serious difficulty on the company in fund maneuvering. At of the end of June, the company only had NT$85.8 million worth of liquid assets in hands, a far cry from the need of NT$500 million to repay its short-term loans and payable negotiable instruments, giving the company no other choice but to seek corporate restructuring. Prodisc is the second major Taiwanese optical-disk maker having filed for corporate restructuring recently, following the move of Optodisc Technology Corp. last year. (by Philip Liu) Copyright Announcement Copyright © 1995-2008 CENS Inc. 561 Chunghsiao E. Rd., Sec. 4, Taipei, Taiwan, ROC. All rights reserved. CENS owns the copyright to this document. Any person is hereby authorized to view, copy, print, and distribute this document subject to the following conditions: The document may be used for informational purposes only. The document may only be used for contacting manufacturers listed herein. Any copy of this document or portion thereof must include this copyright notice. Note that any product, process or technology described in the document may be the subject of other intellectual property rights reserved by the individual listing companies and are not licensed hereunder. TRADEMARKS CENS and the CENS logo are trademarks or registered trademarks of CENS, Inc. All other product names mentioned herein are the trademarks of their respective owners. cd Link to comment Share on other sites More sharing options...
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