14-Hitron System Inc

14-Hitron System Inc - casinos in Las Vegas"We are one...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Hitron System Inc. (Unit: 100 Mil. Won) Year Dec 31 st 2004 Dec 31 st 2005 Dec 31 st 2006 Dec 31 st 2007 Mar 31 st 2008 Revenue 1,300 .5 1,439 .1 1,348 .5 1,481 .7 398. 3 Percentage Change 10.66% -6.30% 9.88% 7.53% COGS 1,168 .1 1,283 .6 1,225 .8 1,346 .1 358. 2 Percentage Change 9.89% -4.50% 9.81% 6.44% Gross Profit 132. 4 155. 5 122. 7 135. 6 40. 1 Percentage Change 17.45% -21.09% 10.51% 18.29% Hitron Systems Inc., is the King of OEM and ODM security products in the world has seen year-on-year sales revenue percentage change increase 10.66% in 2005, 9.88 % in 2007 and even in the first 3 months of 2008 the company still enjoying 7.53% revenue growth rate , according to the company's 2008 financial report. The key to Hitron’s success could be related back to their history of globalization strategy, one of the leading South Korean CCTV manufacturers. "Our customers are the world's biggest manufacturers and installers," said J. H. Choo, senior manager of Hitron. Hitron’s products is everywhere from airports to
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: casinos in Las Vegas. "We are one of the top 10 security manufacturers in the world. I would say that 15 percent of the security products in the world are from Hitron. This, of course, is just my estimation," he said. Since 2004 Hitron has attained $US 70 export prize and established China Factory in Suzhou province in 2005 for manufacturing cost competitiveness. However, growth fell dramatically from 10.66% percent in 2005 to -6.30 percent in 2006 due to “Price war”. According to Alan Everid, senior product manager of CCTVs at Bosch Security System “Korea security equipment companies are losing out to China one.” It is very clear that security equipment prices have fallen; this is putting margins under great pressure ODMs now have 40 percent while OEMs have only 20 percent. Compared with 2000, the margins back in those days were 60 to 70 percent....
View Full Document

Ask a homework question - tutors are online