Ricoh quits ODD business, MET Technology to feel the impact
According to DigiTimes, MET Technology, the Taiwan sales agent for Ricoh, is expected to be seriously impacted by the Japan-based companys decision to discontinue its ODD business.
According to Bloombergs Japanese-language website, bloomberg.co.jp, Ricoh has decided to terminate its ODD business operation due to continued losses. Ricohs decision will seriously impact METs business since the sale of Ricoh ODDs and pick-up heads accounts for 60% of its total revenues.
To minimize the negative effects on its operation, MET has obtained consent from Ricoh to take over Ricohs ODD business, including its R&D resources and commercial rights, MET president Jimmy Chu stated. Chu indicated this is a good opportunity for MET to build up its ODD business.
With a pre-tax loss of NT$56 million in the third quarter, METs pre-tax losses total NT$128 million for the January-September period, exceeding its projected pre-tax loss of NT$72.1 million for this year.
MET is likely to make a downward adjustment to its 2004 financial forecast, the Taiwan ODD makers indicated.
To minimize the negative effects on its operation, MET has obtained consent from Ricoh to take over Ricohs ODD business, including its R&D resources and commercial rights, MET president Jimmy Chu stated. Chu indicated this is a good opportunity for MET to build up its ODD business.
With a pre-tax loss of NT$56 million in the third quarter, METs pre-tax losses total NT$128 million for the January-September period, exceeding its projected pre-tax loss of NT$72.1 million for this year.
MET is likely to make a downward adjustment to its 2004 financial forecast, the Taiwan ODD makers indicated.
