Production Cost Reductions Ordered By Avermedia

T.V. card manufacturer, Avermedia, have announced today their revenues for February which see a growth of 20% for the month from January, and a growth of 31.75% against this time last year. The company earned themselves NT$352 million (US$11.44 million) last month, however have announced that their focus is now to reduce the cost of production, though they will be building a new manufacturing facility in Taiwan.

The investment of NT$1.5 billion (US$49 million) to build the facility in Taipei County in the next three years isn’t their only method of reducing costs, as they plan to renegotiate the costs of materials with their suppliers and start outsource production orders to EMS providers within China. Though the company has stated that if T.V. cards become standard in notebooks, Avermedia is not adverse to moving production closer to notebook ODMs.

The notebook market sees between 5% and 10% of products being shipped with T.V. cards and Avermedia accounted for about 2% of this market in 2007, however the company expects a larger slice of the market pie once costs for T.V. cards aren’t so prohibitive to buyers.

Avermedia’s chief financial officer, Moses Lee, stated that when the price of T.V. cards drops to a similar range as that of WiMAX or webcams, demand should increase from both retailers and buyers. As it is, nine out of the top ten notebook retailers have already made overtures to Avermedia about collaborative deals, said Lee.

Whilst the company has experienced a drop off in projector demands from within the education sector, the companies enterprise market has picked up speed. Avermedia is predicting a steady growth of approximately 30% for the year in their enterprise projector market and security monitor market.