PQI shifts focus to wireless peripherals, accessories

Josephine Lien, Taipei; Jessie Shen, DIGITIMES [Friday 23 November 2012]

Power Quotient International (PQI) is set to reduce its exposure to the DRAM module market, and focus on the sale of wireless peripherals and accessories used in consumer technology products through distribution channels, according to Alan Chang, CEO of the company's global operations.

Once known as a dedicated manufacturer of DRAM modules, PQI has diversified its product line to include computer and mobile peripherals, such as Apple accessories and SSDs, Wi-Fi storage and flash storage devices.

Chang indicated that starting 2012, PQI has undergone a business transformation in a move to phase out its DRAM module business. The transformation has shown signs of progress, said Chang, adding that revenues at PQI registered a more than 30% sequential increase in the third quarter of 2012. Rising sales of its peripherals for Apple devices led to the substantial revenue rise, Chang noted.

PQI is set to report flat sequential growth in revenues for the fourth quarter of 2012, as sales of wireless peripherals and accessories will help offset the continued weakness in memory sales, Chang said. PQI expects the sales ratio for its memory module business, consisting of DRAM and flash-based devices, to slip to 50% within the next three years.

Chang also noted that PQI plans to tap the embedded memory market in the next two quarters, with the launch of eMMC related devices. The new product line is expected to make a positive contribution to company profitability, Chang said.

In addition, PQI's planned capital cut of 40% will be carried out on December 11, according to a resolution passed by the company's board of directors. The upcoming capital downsizing will help lift the net value of PQI's shares.

PQI in 2010 drew investment from Foxlink (Cheng Uei Precision Industry), an affiliate of Foxconn Electronics (Hon Hai Precision Industry). Foxlink chairman Tai-chiang Gou was named chairman and CEO of PQI after Foxlink became the largest shareholder of PQI.

PQI Air-series Wi-Fi memory card
Photo: Shihmin Fu, Digitimes, November 2012