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DrayTek transfer capacity from China to Taiwan

Own-brand router, switch and wireless access point maker DrayTek has moved production capacity from Changshu, eastern China, to Taiwan because production in China is no longer competitive, according to the company.

Among Taiwan-based networking/communication device makers, DrayTek is characterized by its large proportion of R&D staff. More than half of 215 DrayTek employees are R&D members and 80% of them are software engineers, DrayTek noted. This is because DrayTek capitalizes on software to increase the added value of its products to improve competitiveness via differentiation, the company indicated. In overseas markets, DrayTek's sales agents not only promote sales but also cooperate with DrayTek based on customer needs, DrayTek noted.

DrayTek posted consolidated revenues of NT$601.7 million (US$19.1 million), slipping 1.72% on year, gross margin of 51.53%, up 5.22pp, net operating profit of NT$165.2 million, up 11.67%, net profit of NT$129.1 million, up 14.76%, and net EPS of NT$1.65 for the first half of 2016. Routers accounted for 85% of consolidated revenues, wireless APs 9% and switches 4%.