CMC Magnetics has estimated pretax profits of NT$921 million on revenues of NT$2.809 billion for January, according to the company’s chairman Robert Wong.

Wong emphasized that CMC relies on quality and fast time to market for its products and leverages its R&D strengths to combat other local makers’ price-cutting competition. To illustrate his point, he used the company’s moves to increase the proportion of 8x discs to 80% of total blank DVD+R/-R shipments this month and further to 100% next month and to begin volume production of single-sided double-layer 8x DVD discs next quarter.

Although 8x DVD+R/-R OEM prices have slipped from US$1.2 to US$1.0 per disc, the dyestuff cost that contributes as much as 70%-80% of the total production cost has dropped a great deal in the same time, Wong noted. CMC’s 8x DVD+R/-R clients generally demand the use of dyestuff produced by Mitsubishi Chemicals in Japan. The Japanese producer, due to strong competition from other Japanese makers such as Fuji, has reduced its dyestuff price from 20,000 yen per gram nearly two months ago to 5,000 yen currently, Wong pointed out.