Inventec's margin grew 4.5% driven by server sector

Inventec Corporation, a Taiwan-based notebook contract manufacturer, indicated the company's margin grew 4.5% in Q1 as the highest in four major notebook contract manufacturers in Taiwan. Mr. Alexander Hsu, Inventec's vice president of finance, said the high-margin server shipment volume grew to contribute more than other products. It is estimated the company's margin will stay over 4% in the long term. The shipment volume of notebook in Q2 will increase 10%-15% over Q1.

According to Inventec's fiscal report announced the day before, the notebook shipment volume reached 4 million units represented a decrease of 11% over last year's 4.5 million units. The net income per share was NT$0.41 but the margin grew 4.5% from Q409's 4.38%. The company pointed the product portfolio shifted toward profit-oriented and Dell also placed more orders in server products.

Inventec estimated the Q2 notebook shipment volume will grow 10%-15% over Q1 reached 4.4-4.6 million units. The total volume of first six months will reach 8.4-8.6 million units and the yearly volume will reach 20-25 million units that might stay the same compared to last year's 21 million units.

Inventec used to estimate the growth of Q2 would be 15%-20%. However, considering the impact of the air traffic chaos caused by the Icelandic volcano eruption, the company tuned the estimation down. The April shipment volume of 1.04 million units declined 20% over previous month. The volume might go back to the normal level in May and the growth will represent 50%.

Inventec has featured in server business to grow this year. Besides major customer HP, Dell's high-end servers also started to ship last year. The company estimated the server business will account for 20% over Q1 revenue, a significant increase from last year's 15%.