Taiwans Top Two Optical Disc Makers See Margins Decline
Decreasing OEM prices dampen gross margins in the second quarter.Decreasing OEM prices have dampened CMC Magnetics Corp. and Ritek Corp. gross margins in the second quarter. CMC went from 36 percent in the first quarter to its current 29 percent, while Ritek dropped from 29 percent in the first quarter to 25 percent now, the two companies said. The companies expect production of 16x DVDs is expected to pick up in the next quarter.
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