Microelectronics Technology Inc.: Company Profile and SWOT Analysis

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Microelectronics Technology Inc.: Company Profile and SWOT Analysis
Microelectronics Technology Inc.



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Microelectronics Technology Inc. Financial Snapshot



Operating Performance

Fast Facts

The company reported revenue of US$257.12 million

Headquarters Address No. 1 Innovation Road II, Hsinchu, ,Taiwan

during the fiscal year 2010 (2010). The company's

revenue grew at a CAGR of 9.41% during 2006–

Telephone + 886 3 5773335

2010, with an annual growth of 33.31% over 2009. In

2010, the company recorded an operating margin of -

Fax + 886 3 5770194 2.33%, as against -2.49% in 2009.



Website www.mti.com.tw

Revenue and Margins

Ticker Symbol, Stock Exchange 2314, Taiwan Stock Exchange



Number of Employees 2,812



Fiscal Year End December



Revenue (in US$ million) 257.12



Revenue (in TWD million) 8,112.07









SWOT Analysis Return on Equity



Strengths Weaknesses The company recorded a return on equity (ROE) of -

3.54% for 2010, as compared to its peers, Chicony

Strong focus on R&D activities Substantial debts Electronics Co., Ltd. (Ticker: 2385), Chunghwa

Telecom Co., Ltd. (Ticker: BDX) and United

Microelectronics Corporation (Ticker: 2303), which

Strong top-line performance recorded ROEs of 26.11%, 13.06% and 10.90%

respectively. The company reported a net profit

Wide product portfolio margin of -2.33% in 2010.





Opportunities Threats Return on Equity



Positive outlook for communication

Government regulation

products



Positive outlook for WiMAX market Intense competition



Product launches Regulations from RoHS and WEEE



Strategic collaboration with

AppliedMicro









Liquidity Position



The company reported a current ratio of 1.89 in 2010,

as compared to its peers, Chicony Electronics Co.,

Ltd., Chunghwa Telecom Co., Ltd. and United

Microelectronics Corporation, which recorded current

ratios of 1.48, 1.67 and 2.06 respectively. As of

December 2010, the company recorded cash and

short-term investments of worth US$76.51 million,

against zero current debt. The company reported a

debt to equity ratio of 0.40 in 2010 as compared to its

peers, Chicony Electronics Co., Ltd., Chunghwa

Telecom Co., Ltd. and United Microelectronics

Corporation, which recorded debt to equity ratios of

0.50, 0.01 and 0.09 respectively.









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Microelectronics Technology Inc. - SWOT Profile Page 1

Microelectronics Technology Inc.



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TABLE OF CONTENTS



1 Business Analysis ................................................................................................................................... 5

1.1 Company Overview ................................................................................................................................................5

1.2 Business Description ..............................................................................................................................................5

1.3 Major Products and Services .................................................................................................................................6

2 Analysis of Key Performance Indicators ............................................................................................... 7

2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7

2.2 Key Financial Performance Indicators .................................................................................................................10

2.2.1 Revenue and Operating Profit .........................................................................................................................10

2.2.2 Asset, Liabilities and Capex .............................................................................................................................11

2.2.3 Operational Efficiency ......................................................................................................................................12

2.2.4 Solvency ..........................................................................................................................................................13

2.3 Competitive Benchmarking ..................................................................................................................................14

2.3.1 Efficiency ..........................................................................................................................................................14

2.3.2 Capital Expenditure ..........................................................................................................................................15

2.3.3 Turnover – Inventory and Asset .......................................................................................................................16

2.3.4 Liquidity ............................................................................................................................................................17

3 SWOT Analysis ...................................................................................................................................... 18

3.1 SWOT Analysis - Overview ..................................................................................................................................18

3.2 Strengths ..............................................................................................................................................................18

3.3 Weaknesses .........................................................................................................................................................18

3.4 Opportunities ....................................................................................

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