The bringer of bad news
PRESS RELEASE
BenQ Announces Discontinuation of
Funding for its German BenQ Mobile Phone Subsidiary
TAIPEI, TAIWAN, 28 September, 2006 – To stem unsustainable losses at BenQ’s mobile operations, BenQ Corporation’s board of directors convened today and resolved to discontinue capital injection into BenQ Mobile GmbH & Co OHG, its German mobile phone subsidiary. The subsidiary is considering filing for insolvency protection.
BenQ Mobile GmbH & Co OHG’s operations in Germany, including Munich, Bocholt and Kamp-Lintfort may be affected. Other subsidiaries in Brazil and other locations are reviewing their financial position. BenQ will continue its branded mobile business in selected markets leveraging its existing R&D and manufacturing operations in Asia.
“Since October 2005, we have committed and invested an inordinate amount of capital and resources into our German mobile phone subsidiary. We have worked alongside our German colleagues from the beginning and were able to achieve quite a number of milestones,” expressed K.Y. Lee, BenQ Corporation Chairman. "Despite the progress achieved in reducing cost and expenses, widening losses have made this very painful decision unavoidable," continued Mr. Lee.
BenQ emphasized that adjustments to its mobile operations do not change the company’s unwavering commitment to its branded business and focus on providing integrated manufacturing services.
About BenQ Group
The BenQ Group is currently comprised of ten companies that operate independently while sharing resources and leveraging synergies among them. The BenQ Group companies include AU Optronics Corporation, the world’s third largest manufacturer of LCD panels; Darfon Electronics Corporation; Daxon Technology Inc; Airoha Technology Corporation; Wellypower Co. Ltd.; Philips BenQ Digital Storage; BenQ Guru; Raydium Semiconductor Corporation, Cando Corporation and BenQ Corporation. 2005 revenues for BenQ Group exceeded US$12.43 billion dollars.
BenQ Corporation consists of three main business groups and units—Computing, Consumer Electronics, and Communications. Although these business groups and units encompass a broad range of products, each retains a focus on providing consumer-oriented solutions designed especially for the digital lifestyle. 2005 revenues exceeded US$5.07 billion dollars. For more information, please visit our website at http://BenQ.com.
TAIPEI, TAIWAN, 28 September, 2006 – To stem unsustainable losses at BenQ’s mobile operations, BenQ Corporation’s board of directors convened today and resolved to discontinue capital injection into BenQ Mobile GmbH & Co OHG, its German mobile phone subsidiary. The subsidiary is considering filing for insolvency protection.
BenQ Mobile GmbH & Co OHG’s operations in Germany, including Munich, Bocholt and Kamp-Lintfort may be affected. Other subsidiaries in Brazil and other locations are reviewing their financial position. BenQ will continue its branded mobile business in selected markets leveraging its existing R&D and manufacturing operations in Asia.
“Since October 2005, we have committed and invested an inordinate amount of capital and resources into our German mobile phone subsidiary. We have worked alongside our German colleagues from the beginning and were able to achieve quite a number of milestones,” expressed K.Y. Lee, BenQ Corporation Chairman. "Despite the progress achieved in reducing cost and expenses, widening losses have made this very painful decision unavoidable," continued Mr. Lee.
BenQ emphasized that adjustments to its mobile operations do not change the company’s unwavering commitment to its branded business and focus on providing integrated manufacturing services.
About BenQ Group
The BenQ Group is currently comprised of ten companies that operate independently while sharing resources and leveraging synergies among them. The BenQ Group companies include AU Optronics Corporation, the world’s third largest manufacturer of LCD panels; Darfon Electronics Corporation; Daxon Technology Inc; Airoha Technology Corporation; Wellypower Co. Ltd.; Philips BenQ Digital Storage; BenQ Guru; Raydium Semiconductor Corporation, Cando Corporation and BenQ Corporation. 2005 revenues for BenQ Group exceeded US$12.43 billion dollars.
BenQ Corporation consists of three main business groups and units—Computing, Consumer Electronics, and Communications. Although these business groups and units encompass a broad range of products, each retains a focus on providing consumer-oriented solutions designed especially for the digital lifestyle. 2005 revenues exceeded US$5.07 billion dollars. For more information, please visit our website at http://BenQ.com.
