MUNICH, Germany In Q2/2008, board computer manufacturer Kontron AG (Eching, Germany) has achieved double-digit growth figures. Despite the strong euro, the company reports growth and a high order entry across all geographies.
During the second quarter, the company booked a record revenue of 127 million (about $200 million) which represents a nominal growth of 13.5 percent against the comparable quarter past year. Adjusted by currency effects, the growth was even 25 percent, the company informed. Order entry for the first six months of FY2008 grew 19 percent to 307 million.
While demand was particularly strong in emerging markets such as Russia and China, the company also reports growth in Europe and in the USA. Soft demand in some market segments such as the European industrial automation was softening. This effect however was more than compensated by increased orders from seminal markets like energy and security technology as well as telecommunications equipment vendors. Also the number as well as the volume of new design-wins increased from 162 design-wins in Q2/2007 to 223 during the current quarter; their volume grew to 151 million from 129 million.
Recently the company had increased its holding of its Penang, Malaysia based production facilities to 100 percent. According to Kontron, the move will help reduce manufacturing costs and at the same time secure the company's independence. At the same time, the company announced to further reduce its share in the Quanmax manufacturing joint venture with Quanta. Kontron's aims at reducing its holdings from currently 45 percent to less than 20 percent. The company plans to include another partner into the joint venture; pre-contracts with vendors of consumer-oriented computer solutions with strong software know-how already have been signed, Kontron said.
In the face of the high order backlog and the increasing number of design wins, the company reiterated its guidance of double-digit revenue growth for FY2008 along with disproportionately high profit growth.