Tuesday, November 6, 2007

Arima Communications lands more handset orders from LG; sees strong shipments in October

Daniel Shen, Taipei; Steve Shen, DIGITIMES [Monday 5 November 2007]

Arima Communications has received orders from LG Electronics for three new ODM handsets, including two low-cost multimedia models and one ultra-low cost model, according to market sources. In addition, the company also recorded strong shipments in October.

Arima will use chipset solutions from MediaTek for the production of the two multimedia handsets, while utilizing the LoCosto solution from Texas Instruments (TI) for the production of the ultra-low cost model, the sources noted.

Since the fourth quarter of 2006, Arima has made four handsets – the KG200, KG300, KG195 and KG198 – for LG, with combined shipments already exceeding three million units, said the sources.

In addition, LG reportedly has been in talks with other Taiwan-based makers about possibly releasing orders for smartphones, the sources indicated.

In other news, Arima shipped 1.61 million handsets in October, the highest level in 18 months, according to sources at the company. However, for the first 10 months of 2007, handset shipments totaled 7.86 million units, down 34% on year, according to a Chinese-language Commercial Times report.

Arima's October revenues, in line with increasing shipments, topped NT$3.56 billion (US$109.9 million), up 144.2% on year, and for the first ten months, revenues accumulated to NT$14.97 billion, down 28.2% on year, according to a company filing the Taiwan Stock Exchange (TSE).

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