Gemtek’s (TSE:4906) financial statements for the quarter ended September 30, 2008 were released in compliance to the regulation of publicly listed company of Taiwan, R.O.C.

2008 Q3 total sales revenue hit a record high at NT$ 5.803 billion with after tax EPS at NT$ 1.63.

The factors that yield such well performance includes:

1. Incremental growth of IPSTB shipment: As one of the growth drivers of Gemtek in 2008, IPSTB contributes its relatively high ASP and profit to Gemtek total revenue and gross margin. Since 1Q 2008, when IPSTB shipment was firstly launched, IPSTB shipment keeps growing by quarter. Such growing momentum is expected to last.
2. Growing momentum of WiMax: Gemtek shipped mainly 16d in 2008 1H and launched 16e shipment in 3Q. Average monthly shipment of WiMax had grown quite significantly in 2008. .Remarkable contribution from WiMax to Gemtek 2008 revenue is expectable.
3. Increased 11n shipment: Back-to-school effect topped with Intel new platform led market demand of 11n, which contributes relatively high ASP to Gemtek total revenue.

Below is a brief Income Statement of Q3 2008 for reference with detailed financial statements downloadable from the Gemtek’s website at http://www.gemtek.com.tw/investors.html.

Gemtek Technology Co., Ltd. Income Statement For the Quarter Ended Sep. 30, 2008 Sales Revenue (k) NT$5,718,453 Gross Margin (k) NT$766,382 Gross Margin (%) 13.4% Operating Income (k) NT$396,173 Operating Profit (%) 6.93% Non-Operation Income (k) NT$211,153 Non-Operation Expense (k) NT$84,728 Net Profit After Tax (k) NT$367,985 Capital Stock@NT$10par 2,535,429 Adjusted EPS NT$1.64 (Consolidated & Reviewed) * Numbers are rounded

Gemtek (TSE:4906) September sales revenue keeps high, reported as NT$ 1.829 billion, consolidating sales revenue NT$ 1585.6 Million contributed from Gemtek Technology while the other NT$ 243.4 Million is contributed from Gemtek’s China manufacturing operations. The consolidation of financial statements had deducted the internal transactions between Taiwan and Mainland China operations.

Year 2007 (‘000) Year 2008 (‘000) YoY % Revenue in October NT$ 1,405,305 NT$ 1,829,012 Up 30.15% Cumulative Sales Revenue from Jan to October NT$ 14,723,324 NT$ 17,564,791 Up 19.30% * Numbers are rounded

Gemtek (TSE:4906) September sales revenue kept high with a reported NT$ 1.903 billion. The consolidated sales revenue consisted of NT$ 1429.4 Million from Gemtek Technology while the other NT$ 473.9 Million is contributed from Gemtek’s China manufacturing operations. The consolidation of financial statements had deducted the internal transactions between Taiwan and Mainland China operations.

Year 2007 (‘000) Year 2008 (‘000) YoY % Revenue in September NT$ 1,400,673 NT$ 1,903,362 Up 35.89% Cumulative Sales Revenue from Jan to September NT$ 13,318,019 NT$ 15,735,779 Up 18.15% * Numbers are rounded

Gemtek (TSE:4906) August sales revenue hits another record high, reported as NT$ 1.982 billion, consolidating sales revenue NT$ 1720.6 Million contributed from Gemtek Technology while the other NT$ 261.5 Million is contributed from Gemtek’s China manufacturing operations. The consolidation of financial statements had deducted the internal transactions between Taiwan and Mainland China operations.

Year 2007 (‘000) Year 2008 (‘000) YoY % Revenue in August NT$ 1,522,961 NT$ 1,982,071 Up 30.15% Cumulative Sales Revenue from Jan to August NT$ 11,917,346 NT$ 13,832,417 Up 16.07% * Numbers are rounded

Gemtek’s (TSE:4906) financial statements for the first half 2008 was released in compliance to the regulation of publicly listed company of Taiwan, R.O.C.

The factors that yield better than expected performance includes:

1. IPSTB shipment ramping up: IPSTB commercial shipment was launched in 1Q 2008 and continuously grew in 2Q. IPSTB’s relatively high ASP and profit directly contributed to Gemtek’s revenue and gross profit. In whole 2008, we expect volume shipment of IPST will incrementally grow by month.
   
2. Significant growth of WiMax: WiMax continuously grows significantly due to strong market demand. Notably, Gemtek ships only 16d CPE in the 1H 2008 while 16e CPEs shipment will be launched in Q3. Hence, remarkable contribution from WiMax to Gemtek 2008 revenue is expectable.

Below is a brief Income Statement for reference with detailed financial statements downloadable from the Investor Service section of Gemtek’s website at http://www.gemtek.com.tw/investors.html.

 

Gemtek Technology Co., Ltd. Income Statement For the Quarter Ended June 30, 2008 Sales Revenue (k) NT$10,017,326 Gross Margin (k) NT$1,318,547 Gross Margin (%) 13.16% Operating Income (k) NT$671,110 Operating Profit (%) 6.70% Non-Operation Income (k) NT$254,288 Non-Operation Expense (k) NT$162,954 Net Profit After Tax (k) NT$601,877 Capital Stock@NT$10par 2,414,881 Adjusted EPS NT$2.25. (Consolidated & Reviewed)

Gemtek (TSE:4906) July sales revenue keeps record high, reported as NT$ 1.9245 billion, consolidating sales revenue NT$ 1681.3 Million contributed from Gemtek Technology while the other NT$ 243.2 Million is contributed from Gemtek’s China manufacturing operations. The consolidation of financial statements had deducted the internal transactions between Taiwan and Mainland China operations.

Year 2007 (‘000) Year 2008 (‘000) YoY % Revenue in July NT$ 1,647,393 NT$ 1,924,484 Up 16.82% Cumulative Sales Revenue from Jan to July NT$ 10,394,385 NT$ 11,850,346 Up 14.01% * Numbers are rounded

Gemtek (TSE:4906) sales revenue keeps hitting record high for the fourth consecutive month as May sales revenue is reported as NT$ 1.925 billion, consolidating sales revenue NT$ 1650 Million contributed from Gemtek Technology while the other NT$ 275 Million is contributed from Gemtek’s China manufacturing operations.  The consolidation of financial statements had deducted the internal transactions between Taiwan and Mainland China operations.

Growth momentum of WiMax, IAD, and IPSTB has contributed remarkable number to Gemtek revenue for four months. May and June are traditionally slow seasons for retail market; however Gemtek 2008 products mix substantially diminishes such seasonality.

As for Q3 outlook, three main growth drivers of Gemtek in 2008 will together launch shipment either for new spec or to new customers. These added shipments will strengthen growing momentum in Q3, leading revenue to further increase. 

Year 2007 (‘000) Year 2008 (‘000) YoY % Revenue in June NT$ 1,482,485 NT$ 1,924,983 Up 29.85% Cumulative Sales Revenue from Jan to June NT$ 8,746,992 NT$ 9,925,862 Up 13.48% * Numbers are rounded

Gemtek (TSE:4906) sales revenue keeps hitting record high for the third consecutive months as May sales revenue is reported as NT 1.924 billion, consolidating sales revenue NT$1644 Million contributed from Gemtek Technology while the other NT$280 Million is contributed from Gemtek’s China manufacturing operations.  The consolidation of financial statements had deducted the internal transactions between Taiwan and Mainland China operations.

Incremental growth of WiMax, IAD, and IPSTB shipments are the main contribution of May revenue growth. These products present relatively higher profit and are expected to drive total gross margin to a higher extent. These products’ growths, top with 11n SKU shipment, are expected to keep contributing considerable portion of sales revenue for 2008.

Year 2007 (‘000) Year 2008 (‘000) YoY % Revenue in May NT$1,393,795 NT$1,923,503 Up 38% Cumulative Sales Revenue from Jan to May NT$7,264,507 NT$8,000,879 Up 10.14% * Numbers are rounded

Gemtek (TSE:4906) reports April sales revenue as new record high at NT$1.855 Billion, consolidating sales revenue NT$1501 Million contributed from Gemtek Technology while the other NT$354 Million is contributed from Gemtek’s China manufacturing operations.  The consolidation of financial statements had deducted the internal transactions between Taiwan and Mainland China operations.

Notably, Gemtek sales Revenue had broke the past record for two consecutive months, demonstrating upside influence from Gemtek new products line for pursuing higher margin and signaling positive outlook of networking industry. April remarkable revenue increase was due to stable growth of WiMax, IAD, and IPSTB. These products’ growth and shipment of 11n SKU are expected to keep contributing considerable portion of sales revenue for 2008.

Year 2007 (‘000) Year 2008 (‘000) YoY % Revenue in April NT$1,565,155 NT$1,855,023 Up 18.52% Cumulative Sales Revenue from Jan to April NT$5,870,712 NT$6,077,376 Up 3.52% * Numbers are rounded

1. Date of the board of directors resolution:2008/04/03
2. Source of capital increase funds: 2007 shareholder's dividends and employee bonus
3. Number of shares issued: 11,624,762 shares
4. Par value per share: NT$10.00
5. Total monetary amount of the issue: NT$116,247,620.00
6. Issue price: Not Applicable
7. Number of shares subscribed by or allotted to employees: Employee Bonus transferred as New Issuance, 7,215,000 shares
8. Number of shares publicly sold: Not Applicable
9. Ratio of shares subscribed by or allotted as stock dividends to existing shareholders: For every 1000 shares, 20 shares will be distributed.
10. Method of handling fractional shares and shares unsubscribed by the deadline: Will be sold at face value at the Chairman's discretion
11. Rights and obligations of the newly issued shares: Same as the originals.
12. Utilization of the funds from the capital increase: To improve Working Capital
13. Any other matters that need to be specified: None.

1. Gemtek Earnings distribution plan 2007
2. Date of the board of directors resolution:2008/04/03
3. Type and monetary amount of dividend distribution:
   (1)Cash dividend:NT$ 3.2 per share; Share dividend: NT$0.2 per share.
   (2)Distribute NT$ 136,130,082 as empolyee's bonus; NT$ 18,150,677 as BOD remuneration.
4. Any other matters that need to be specified:
   Board chairman may modify the distribution plan if the number of shares in market or dividend yield for shareholders is changed due to repurchase of Gemtek shares, treasury stock conversion or write off, ECB conversion, or employee stock options.