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A number of Taiwan-based networking device makers saw their operating and gross margins improve in the first quarter of 2017, buoyed by individual companies’ efforts to improve product mixes and product differentiations, according to industry sources.
Gemtek Technology has been striving to integrate a variety of customized mobile communication network and area network applications into IoT-enabled solutions and to develop low power wide area network (LPWAN) end-to-end solutions, said the sources.
Gemtek is currently able to offer a number of LPWAN-based solutions for smart industrial parks, smart cities and industrial, agriculture, forestry, water, and energy resource projects, added the sources.
Gemtek had an operating margin of 5.81% and a gross margin of 16.43% in the first quarter of 2017 thanks its focus on IoT and LPWAN devices.
Sercomm has been focusing on development of new technologies for IoT and AI (artificial intelligence) applications, and also using related technologies to develop solutions for applications including cloud IoT, smart energy management, automation control systems, medical care and small cells.
Sercomm is currently developing AI-based voice assistant devices for smart home and telecom applications with an aim to further enrich its smart home product lines in 2017, indicated the sources.
While ramping up its shipments to the telecom sector in Latin America, Arcadyan Technology plans to step into the telecom markets in India and other emerging markets in Southeast Asia and the Middle East in 2017. The company also plans to locate a production partner in Brazil to produce networking devices for Latin America market.
Meanwhile, Alpha Networks has been strengthening its development on millimeter wave (mmWave) radar solutions to the automobile and heavy industry sectors, with shipments to increase significantly in 2017. In addition to 24GHz collision avoidance radar products, the company has also begun developing 77GHz radar products.
Alpha Networks recorded a gross margin of 17.12% in the first quarter of 2017, the company’s highest quarterly level since the fourth quarter of 2015.
Accton Technology has been promoting its products under SMC and Edge-Core dual brands, mainly to international-scale clients in the business, telecom and datacenter sectors.
For datacenter clients, Accton is shipping 10G/40G/100G/200G SDN (software-defined networking) compatible network switch products. Meanwhile, the company is also developing cloud Wi-Fi solutions, smart Wi-Fi antennas and 60GHz mmWave devices for the wireless networking sector.
Accton posted an operating margin of 9.83%, gross margin of over 20%, and an EPS of NT$1.19 for the first quarter of 2017. The first-quarter EPS was the highest quarterly EPS in 21 years.
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