Delta Electronics posted 71.2 percent increase in its consolidated sales revenues for February 2006 to NT$6,930 million (about $213 million) as compared with NT$4,047 million (about $124 million) for February 2005. The company's cumulative consolidated sales for January and February 2006, were NT$13,886 million, a 48.8 percent increase compared with NT$9,331 million for the same period in 2005.
Delta has been able to continue growing at impressive double-digit rates, even as its overall sales are expected to near $2.5 billion in 2006. One way that Delta has been able to sustain its growth is by diversifying into areas outside of power. Even with its growing focus on a variety of "non-power" market areas, various types of power converters still account for about 52% of Delta's overall sales. And that percentage is not expected to shrink significantly in the near future.
One sign of Delta's diversification is a joint venture agreement recently signed by Delta, its subsidiary, Delta-Optoelectronics (Delta-Opto), display panel and LCD TV producer, Chi Mei Optoelectronics (CMO), and its subsidiary Yuan Chi Investment Ltd. The new joint venture is to be named "Delta-CMO Optoelectronics Company" and it will specialize in the design, production, and sales of LCD backlight products based on world-leading Flat Fluorescent Lamp (FFL) mercury-free flat panel technology.
The new Delta-CMO Optoelectronics Company has registered capital of NTD 2 billion, in which Delta Electronics and Yuan Chi each holds a 40% share. The remaining 20% will be allocated to Delta-Opto technical shares and joint venture employee shares.
Mr. Bruce Cheng, chairman of Delta Electronics, said, "CMO possesses outstanding technology and mass production capabilities in TFT-LCD panels and systems. The new joint venture will apply innovative, certified mercury-free backlight technology developed over recent years by Delta-Opto for LCD TVs. This advanced technology meets the future environmental requirements of all major markets for mercury-free products." Mr. Cheng added, "This will be the first time that Delta-Opto has released this advanced technology and cooperated with the leading TFT-LCD company, CMO. The joint venture will accelerate time-to-market for TFT-LCD TVs with flat panels based on mercury-free backlights and establish a new paradigm for environmentally- friendly and energy-saving display technology."
Mr. Jau-Yang Ho, president of CMO, said, "Delta Electronics' operational and research excellence is renowned in the industry. CMO is investing aggressively in gathering together the most advanced technology and we are delighted to cooperate with Delta's excellent R&D team, to jointly commit ourselves to the development of this new technology. We believe Delta-CMO Optoelectronics will create substantial synergies by combining teams from CMO and Delta, and this will accelerate the development of next generation backlight technology for LCD displays."
