BenQ's (“Company”) board of directors convened this week to approve its results for the first three months of 2007. The board also approved a capital reduction to make up losses, the spin-off of the Company’s brand-related businesses to its wholly-owned subsidiary, and proposed future private placement of preferred or common stock.

For the first three months of 2007, the company's core business recorded sales of NT$ 29.5 billion. At the Taiwan parent company level, the company posts NT$ 24.8 billion revenue with after-tax net loss coming at NT$ 1.76 billion. Losses per share was NT$0.69 after tax.

“Sales in the first quarter of 2007 declined 15% quarter-on-quarter due to seasonality; however, after-tax net loss reduced largely mainly benefited from the improvement on gross margin and non-operating income.” according to David Wang, BenQ's Vice President and deputy spokesperson.

BenQ's board of directors convened today to approve the spin-off plan of the Company’s brand-related businesses. “The plan is a continuation of BenQ Group’s Dual Core Competency Strategy, which is to focus on the core competencies of brand & services and manufacturing & technology to maximize competitiveness and efficiency.” continued Mr. Wang. Besides, BenQ’s board also approved a plan to reduce the capital in an amount of NT$10.259 billion. Based on the current paid-in capital of NT$25.6 billion, the capital reduction ratio is approximately 40%. “’The capital reduction plan will be helpful to improve current financial structure and to increase net value per share.” added Mr. Wang.

Source: BenQ