BenQ Reports Fifth Consecutive Loss

Taiwan's BenQ has reported its fifth quarterly loss on falling mobile phone sales after the company stopped trying to turn around its German Siemens handset subsidiary. The fourth quarter loss increased to NT$7.9 billion ($238 million). BenQ's Chairman, K.Y. Lee has also offered to resign, although the offer was rejected by the board of directors.

Fourth quarter revenues dropped by 48% to NT$34.6 (US$1.04) billion, caused in large part by the decline in mobile phone sales. Sales of handsets had represented 42% of the company turnover a year earlier, but in the fourth quarter contributed just 4% of the revenues. The company is clearing backlogged inventory and expects first-quarter shipments to rise by around 30% from the fourth quarter's 600,000 units, commented Executive Vice President Jerry Wang.

For the year, Benq reported a record net loss of NT$27.6 billion (US$832 million) after posting a loss of NT$5.2 billion (US$167 milion) in 2005."

Posted to the site on 21st March 2007