Inventec Plans to Adjust Businesses to Boost 1Q16 Gross Margin


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Taiwanese ODM firm Inventec is planning to make adjustments to its invested enterprises prior to the end of this year, according to a Digitimes report. For those businesses that are suffering losses, such as the solar division, Inventec chairman Richard Lee said the company is looking to reduce capital or merge them with other in-group companies, hoping to improve gross margins and break 6% in the first quarter of 2016.

Digitimes reported that Inventec has been aggressively improving its gross margin and successfully brought its average quarterly gross margin to above 5% in 2014, up from only 3-4% in the past. Although Inventec's third-quarter gross margin dropped sequentially to reach only 5.32%, the percentage was still higher than that of the same quarter a year ago.

Inventec's strong improvement in server and smart handheld device business operations dramatically raised the company's revenues from non-notebook businesses and was the key driver for the rising gross margin.

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