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Lite-On's Third-Period Operating Profit Climbs 18.6%

Lite-On Technology Corp.'s third-quarter operating profit margin and gross profit margin were up 18.6% and 6.5% for its high margin businesses contributed 48% to the revenues, the company said.

Lite-On Technology, the world's largest NB adapter maker, said operating profit margin rose to 5.0% from 4.0% in the second-quarter, reached historical record high. The accumulated operating profit and operating profit margin were NT$5.51B and 4.5%, up 26.7% a year earlier.

The gross profit margin was increased 1.2% to 11.7% from 10.5% a quarter earlier, which is quite outstanding in the industry. The accumulated gross margin was 10.8%, up 8.5% a year earlier, with NT$2.22 earning-per-share after tax.

Lite-On has been successfully executing its "Profitable Growth Strategy" by focusing on the four key drivers: power supply, enclosure, LED, and imaging products in the last two years. Contribution from the four core high margin products jumped to 48% from 34% in 2004, which obviously was the growth momentum of the company.

Benefit from power supply should be more than expected. This May, Lite-On acquired 21% and 35% stake respectively in Li Shin International Enterprise Corp. (LSE) and Logah Technology Inc., two Taiwan-based power supply companies and together enjoy 15% market share worldwide. Lite-On's accumulated revenue of power supply was NT$ 25B, together with LSE and Logah, the total revenue should reach to NT$35B this year, doubled than 2003's NT$16.8B. Lite-On's collaboration with Li Shin and Logah will boost the group strong growth in 2007.

Lite-On encourages group synergy rather than heroism of one single business unit. The company pursues outstanding performance by "cluster strategy" that contributed from each business unit, as well as provides "One Stop Shopping Solution" to customers. In 2007, Lite-On will enter next wave to PC, and expand customer base by adding non-PC customers such as game clusters and global handset players.