Although they no longer produce any optical drives, at least in Europe so far, the BenQ company is well known to CD Freaks members. So, this latest story of the companies financial state, will still be of interest to us. We can certainly feel bad for the thousands of laid off workers due to this business crisis! Taiwan's BenQ has stated that they lost over $600 million dollars in the first 9 months of 2006. They now intend to sell off some of their "non-core" assets to try and recover from a disastrous cell phone business venture. It got so bad, according to this report at EE Times, that Siemens paid BenQ to take it off their hands. BenQ has already put up some $760 million dollars to try and keep the Siemens unit alive.
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BenQ said Tuesday that it would sell off some operations to improve its books, and would assess the impact of the unit's failure on other operations. ''Each of the subsidiaries impacted by the filing will evaluate their financial condition and determine whether they should also file for insolvency protection. We believe the decision to seek insolvency protection on the part of our mobile-handset subsidiaries should have a limited impact on BenQ's non-handset operations,'' said Eric Ky Yu, BenQ's senior vice president of finance, said in a statement. |
The article went on to say that the ongoing strategy for the struggling company at this point, is to set aside funding for the BenQ Mobile German division. The priority will be to "rebuild sales channels and boost consumer confidence".
Source: EE Times
