With the deep endeavor of management and employees, Realtek continued to grow through 2009 and posted a record high in revenue. Total revenue for 2009 was NT$20.27 billion, a 21% increase compared to 2008. Gross profit went up from NT$6.90 billion to NT$8.33 billion. Net income rose to NT$2.09 billion, a 138% growth over 2008. Earnings per Share for 2009 was NT$4.41.
In 2009, Realtek not only achieved a new peak in revenue, it also received multiple awards for advanced research and development; the RTD1073 Full-HD Digital Media Processor was awarded the ‘EDN China Innovation Award 2009’ and the ‘Outstanding I.T. Application/Products Award 2009’. The RTL8111DP Managed PCI Express Gigabit Ethernet Controller received the ‘Innovative Product Award 2009’.
In addition, Realtek successfully developed new-generation products with higher quality and lower-cost. These included the RTL8401(P) PCI Express Fast Ethernet Integrated Card Reader Combo Controller, the RTL8192CE WLAN Single Chip with PCI-E interface, the RTS5800 USB 2.0 Web Camera Controller, and the RTD2674 Highly Integrated TV controller.
The global economy has gradually recovered from the financial crisis of 2009. For 2010, research organizations have predicted that personal computer sales will rise by 6%~10% due to greater personal purchasing power, increasing business expenditure, and the influence of Window 7. PC development has trended towards four key features; smaller size, lighter weight, lower power consumption, and improved user interface design. Realtek aims to follow this trend and continually improve its designs to meet these requirements. Realtek is also strongly focused on meeting ‘green’ requirements, and our integrated system-on-a-chip designs reduce power costs, component costs, and PCB space costs to provide more value-added products for customers.
For China in 2010, Broadband Network development in rural areas is the next focus after the earlier China Consumer Electronics and Car Subsidy Policies. Also, China has unveiled a “Three Network Convergence” policy which is the integration of telecommunications networks, the Internet, and broadcast TV networks. It permits telecom and broadcasting industries to enter each other’s area, for example, allowing computer-networking companies to offer IPTV, mobile TV services, and so on. In the United States the Federal Communications Commission announced a 10-year high-speed broadband development plan. Realtek expects these policies to spawn new demand for broadband equipment and will cooperate with Broadband customers to take full advantage of the increased business opportunities.
Though facing competitors’ challenges, rapid changes in market, shorter IC life cycles, and green requirements, Realtek expects its management strategies, aggressive investment in right products, and continual improvement in its technologies and qualities, will create new and inspiring innovations. The most important concern for Realtek is to safeguard our long-term future by making the best return on investment for our investors. We are grateful to you, our shareholders, for your ongoing support. We appreciate your confidence in us and look forward to your continuing support.
Nan-Horng Yeh Sun-Chien Chiu
Chairman President