MUNICH, Germany After a painful restructuring process, chip broker ce Global Sourcing AG sees the turnaround as completed. In the first quarter of its FY 2006 ending March 31, the company achieved a thin operative profit.
The broker company was renamed from ce Consumer Electronics AG to ce Global Sourcing AG. By selling its US based affiliate SND Electronics end of November 2005, sales volume was reduced heavily from €81.4 million ($102 million) to €10.7 million ($13.4 million). Pre-tax profit fell from €254.000 to €92.000. Because the loss was carried forward, the company booked a balance sheet loss of €33.2 million ($41.5 million).
In the past, the company was active in three business divisions: brokerage, eCommerce and trading. With vending SND Electronics, the company ceased its activities in the trading segment; now the company is acting solely in as chip broker. Its activities now comprise the free commerce of electronic components via its eCommerce platform VCE Virtual Chip Exchange. According to its business model, ce Global Sourcing purchases electronic components in Asia and North America and sells them in Europe.
The restructuring reduced the job count of the Munich, Germany, based company from 506 to 70. For the current financial year, the company hopes for a sales volume of €35 million and a net yield of 1 percent. Thus, the management is homing in on an after-tax profit of €350.000 ($438.000) – after a loss of €47.8 ($59.8) million in FY 2005.