VTech EMS Sales Up 39% YoY
HONG KONG -- VTech's EMS unit reported sales of $389.7 million for its fiscal year ended March 31, up 39% from a year ago.
The EMS unit of VTech Holdings had sales of $281 million in its fiscal 2010.
"CMS again outperformed the global electronics manufacturing services market and delivered record revenue, as we benefited from the recovery in the global economy. Our superior performance as a supplier also allowed us to gain new customers and additional business from existing customers in all regions,” said Allan Wong, chairman and Group CEO.
Contract manufacturing services revenues were up 36.2% in North America to $166.7 million on broad-based growth, especially in professional audio equipment and commercial solid-state lighting. Sales in Europe rose 52.1% year-over-year to $176.1 million, on demand for switching mode power supplies, professional
audio equipment and wireless headsets. In Asia Pacific, revenue increased 9.6% to $46.9 million.
For the year ended March 31, VTech Holdings reported profits fell 2.2% to $202 million despite an 11.8% increase in revenue to a record $1.71 billion. Profits fell on higher materials and labor costs, currency appreciation, increased promotional expenses and changes in product mix. VTech also is a leading provider of handheld phones and educational learning products.
VTech said it expects topline growth in fiscal 2012, but stronger headwinds from rising costs might tamp down profits. The company cited high commodity prices and potentially tightener component supply due to the Japan disaster. Wages in China are forecast to rise, and Renminbi appreciation is likely to continue, VTech said.
VTech expressed confidence that its CMS group wuold outperform the EMS market on solid demand from all key product categories in North America, including professional audio equipment, commercial solid state lighting, communications and industrial products. It said it the group is plans a dedicated operation to handle direct delivery from its China-based EMS campus, and a new factory in Dongguan scheduled to come online in the December quarter will increase the company's manufacturing capacity by more than 40%.
