公司新闻 |
ComSOC to double
revenue by next year
It will do so by
modifying its business
model and expanding into
the North Asia market -
reports NANDE KHIN.
ELECTRONICS solutions
provider ComSoc
Technology hopes to
double its revenue by
next year by modifying
its business model and
expanding into the North
Asia market.
'Next year is key for us
to make it happen,
because of the much
higher profit we expectk
next year.'
-
James Jeong,
CEO of ComSOC Technology |
If all goes well, ComSoc
intends to seek a
listing the following
year, CEO James Jeong
said in an interview
with BT.
ComSoc will be breaking
into the Korea and Japan
markets in the first
quarter of next year. Mr
Jeong said his company
has recently obtained
two major contracts to
kick-start this
expansion.
The contracts are with a
Korean mobile phone
maker ranked among the
top three in the world.
Mr Jeong did not name
the company, but the
description fits
Samsung. Under the
contracts, ComSoc will
provide Bluetooth
solutions for mobile
phone applications.
'This is the first time
we are doing business
with such big companies
for finished products,'
said Mr Jeong, adding
that the two projects
together will generate
revenues of at least
US$80 million to US$100
million over the next 18
months.
"ComSoc will be
breaking into
the Korea and
Japan markets in
the first
quarter of next
year. Mr Jeong
said his company
has recently
obtained two
major contracts
- with a Korean
mobile phone
maker ranked
among the top
three in the
world - to
kick-start this
expansion."
|
'The products have been
designed . . . We are
now at the approval
stage. Once they get
approved we can start
selling in Korea,' Mr
Jeong said. And once
ComSoc's Korean office
is running smoothly, it
will take care of the
Japan market as well,
said Mr Jeong.
Revenue from North Asia
The Korean entrepreneur,
who is now a Singapore
permanent resident, used
to work for the Samsung
office in Singapore
before setting up ComSoc
in 1999.
Other than Bluetooth and
other mobile phone
application products,
ComSoc also designs
integrated circuits
(ICs) and develops
flat-screens.
The Singapore-based
company has operations
in China and Hong Kong
as well and earlier this
year, expanded into
Malaysia. Singapore and
Malaysia are, at
present, its biggest
markets. 'But from next
year, North Asia's
contribution to revenue
will be much bigger than
the current revenue,'
said Mr Jeong.
He declined to reveal
specific figures for
ComSoc's revenue and
profit last year but
said that this year's
revenue is expected to
be a 10 per cent
increase from last year,
while net profit is
expected to be a 70-90
per cent jump from last
year.
'We have already hit
last year's profit
during the first half of
this year,' said Mr
Jeong. He added that
next year's revenue will
be 'conservatively
speaking, almost double
this year's'.
This will be a result
not only of the new
contracts and expansion
into Korea and Japan.
The shift in ComSoc's
business model - which
was implemented earlier
this year - will also
play a large part, said
Mr Jeong.
ComSoc used to design,
develop, test and even
market its products from
start to finish. Now, it
will outsource certain
aspects so as to
accelerate the time to
market for products.
'We are not going to do
manufacturing; we are
using third party
solutions from EMS
(electronics
manufacturing services)
providers. We will
concentrate on
development and
marketing.
'We are professionals
for electrical
engineering but we are
not professionals for
mechanical engineering;
we are not professionals
for ID (industrial
design).'
Mr Jeong said that
although ComSoc now has
to pay for professionals
for certain services
like EMS, ultimately it
will benefit the company
as the time-to-market
can be cut by several
months.
And in the electronics
business, timing is
everything. Mr Jeong
said that ComSoc had
learned its its lesson
in the past when it had
experienced an
'unsuccessful case of
doing everything
ourselves'.
He said: 'As an SME, we
had limited resources
and we also had to
compete with much bigger
players. As a smaller
company, we have to
prepare two to three
generations (of
products) ahead. So
time-to-market is
everything.'
Another change in
direction for ComSoc is
in its IC design
business. Previously,
the company designed
different circuits
according to customer
specifications. But now,
in order to maximize its
resources such as
manpower, ComSoc only
designs ICs that will
have relevance to its
other products.
'So if an IC designed is
not related to our
system development
products, we are not
going to do it.' ComSoc
now designs ICs that it
uses in its products as
well as sell to more
than one manufacturer.
Such a business
strategy, which ComSoc
also employs in its
digital TV display
solutions, also has
another advantage of
allowing ComSoc to
concentrate on
innovations that can be
patented. So far, it has
filed a patent for an IC
and the patent will be
probably be awarded in
the first quarter of
next year, Mr Jeong
said.
Focus on TFT development
'This time, the patent
is for IC design but
next time, it may be for
our display solutions.'
ComSoc's digital TV
display solutions is a
business whose focus has
also been recently
shifted from big (flat
screen) displays to
small displays.
'In terms of market
size, the market for
small-sized displays is
much bigger. The market
is quite niche and its
is very suitable for an
SME like us to handle.
For big displays, we
have to compete with big
players like Samsung and
Panasonic. And
eventually, we just
can't (compete),' Mr
Jeong said.
The company used to
develop big PDP screens
but will now focus on
developing smaller TFT
(thin film transistor)
screens. And coupled
with ComSoc's new
strategy of outsourcing
activities, the time to
market for its display
products have been
shortened dramatically.
Previously, its PDP
screens took two to
three years to develop.
Now, it can develop its
TFT screens in three to
five months.
ComSoc also plans to
develop a comprehensive
set of car infotainment
applications in the next
five years and already
has the raw map to do
so, Mr Jeong said.
Come 2007, ComSoc is
looking to list. 'But to
be frank, next year is
key for us to make it
happen, because of the
much higher profit we
expect next year,' Mr
Jeong said.
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