15-COMMAX Inc - product. As home networks becomes more...

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COMMAX 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 385. 1 515. 2 533. 4 710. 0 242. 3 Percentage Change 33.78% 3.53% 33.11% 36.51% COGS 303. 7 386. 2 440. 7 626. 5 207. 4 Percentage Change 27.16% 14.11% 42.16% 32.42% Gross Profit 81. 4 128. 9 92. 6 83. 5 34. 9 Percentage Change 58.35% -28.16% -9.83% 67.19% Despite of the “Price war” in 2005 and Worldwide economic crisis in 2008, Commax Inc. posted high revenue growth for five consecutive years. This great growth because of the company ventures into the home-network sector by the early 2005. According to Commax, it will be supplying products and systems worth about 5 million KRW per unit, totaling 3.6 billion won for 907 households. This installation project involves products and systems with per unit costs 10 times higher than the basic home automation (video door phone)
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Unformatted text preview: product. As home networks becomes more standardized in the buildings, Commax's sales and profits increase accordingly. Commax is also participating in the development of an affordable home network system for a domestic robot platform and smart environment project lead by the Korean Ministry of Commerce, Industry and Energy. In 2005 its revenue increase 33% .78 over 2004 and then, actual earned only 3.53% increase in revenue for 2006 as this segment in the market was latterly affected by Price war. However, Sales in 2007 rebounded 33.1% from Price war event in 2006. Though some others competitors Korean security players suffered from declining revenues, Commax posted growth, its earning 36.51% increase in revenue in 1Q.2008....
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