ASRock says new order would drive its momentum far
By Meryl Kao / Staff Reporter
Having received a large order from a North American game-streaming service provider for advanced motherboards, ASRock Industrial Computer Corp (東擎) yesterday said that strong momentum in its entertainment business would drive low-double-digit-percentage revenue growth this year.
The entertainment business accounted for 49 percent of the company’s revenue of NT$1.76 billion (US$55.5 million) in the first half of this year, largely driven by the North American order, company chairman James Lee (李俊瑩) told a media gathering in Taipei.
ASRock had been in talks with the customer for almost two years and began first-stage shipments this year, Lee said.
ASRock Industrial Computer Corp chairman James Lee, left, and president Handsome Tzeng pose for a photograph in Taipei yesterday.
Photo: Meryl Kao, Taipei Times
The shipments are expected to continue through the end of this month, with second-stage shipments likely to start in the first quarter of next year, he said, adding that the customer has positioned the project as a long-term deal.
Revenue growth this year would also be supported by the company’s latest artificial intelligence (AI) box, the AI BOX-A395, which was launched last month and is suitable for enterprise teams of about 10 to 20 people as a lower-cost alternative to larger AI server platforms, Lee said.
ASRock Industrial is initially marketing the product in Taiwan, saying it has received inquiries from schools and universities for research and teaching purposes, he said.
Customers in Japan, South Korea, India, Southeast Asia, Europe and the US have expressed interest in the product, he added.
ASRock Industrial does not operate its own factories, working with electronics manufacturers in Taoyuan, China’s Guangzhou and Vietnam, company president Handsome Tzeng (曾瑛俊) said.
The Guangzhou and Vietnam facilities focus mainly on motherboard production, while Taiwan is in charge of system-level products and higher-value-added projects, he said.
However, the company continues to face shortages of key components, with central processing units and memory chips continuing to face price increases and longer lead times, chief operating officer Kenny Chang (張晃華) said.
To address this issue, the company is validating alternative components and suppliers while striving to secure components for products set for production next year, he said.
ASRock Industrial reported revenue rose 24.75 percent year-on-year to NT$1.83 billion and net profit increased 10.15 percent to NT$228 million last year, while earnings per share rose to NT$3.68 from NT$3.32 a year earlier.
The company, a subsidiary of motherboard maker ASRock Inc (華擎), is slated to debut its shares on the Taiwan Stock Exchange later next month.
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