11.08.2001
Gross margin riding high going into 2002

• Ritek, the largest CD-R maker in Taiwan, remains optimistic on growth of its CD-R business in 2002, as firm prepares to expand capacity by 20%. Although there is some price pressure in the storage media sector, Ritek believes it can maintain gross margin around 30%. Currently, more than 70% of its revenues come from CD-R products. We believe strong demand for CD-R for the foreseeable future will continue to support revenue growth and the share price.