Prodisc To Shutdown Recordable Media Business?

[Ian]

While I don't think this is the end of Prodisc, they're definitely in big trouble. According to CEN, they're going to be shutting down their optical disc business.

http://news.cens.com/cens/html/en/news/ ... 24208.html

Prodisc Technology Inc., the world`s fourth largest and Taiwan`s third-largest optical-disk maker, filed for corporate restructuring yesterday (Aug. 4) and will exit the market, a move expected to give a relief to other makers in the line from the throat-cutting competition which has plagued the optical-disk market for five years.

Two major beneficiaries of the development will be CMC Magnetics and Ritek Corp., the two leading Taiwanese optical-disk makers, which may be able to hike their prices for the second time this year in the fourth quarter and turn their operations into black in the quarter.

Prodisc boasts a global market share of 11%, trailing CMC Magnetics, Ritek, and India`s MBI. Its exit, therefore, may reverse the glut in the market, which is suffering from 10% excess supply, thereby ending the bearish market which has lasted five years.

Therefore, CMC Magnetics and Ritek may be able to raise their prices again in the fourth quarter, following the 10% hike in response to the increase in materials prices this month.

[Ian]

DigiTimes doesn't say anything about them shutting down their optical disc business. Just that they've asked for protection against their creditors and that they've filed for corporate restructuring.

http://www.digitimes.com/systems/a20080804PD218.html

Prodisc Technology, the third largest Taiwan-based blank optical disc maker and the fourth largest worldwide, on August 4 announced that it has made a request to a local Taiwan court for emergency measures to temporarily prevent its creditors from seizing its assets.

Prodisc asserted that it in financial trouble and the main reason is that Royal Philips Electronics has blocked its exports to force the company to pay royalty fees, according to a company press release.

Prodisc's outstanding debts stood at NT$8.609 billion (US$283 million) in total as of June 30, 2008, the company noted.

[dolphinius_rex]

I'm pretty sure this is the end of Prodisc optical media. It's been coming for a long time, and they won't be the only one leaving the market I'm pretty sure. I'm waiting on a few other names to give up still. There's just no money in recordable media anymore. For anyone.

[Scour]

I know Prodisc isn´t the best, but I had some good experiences with some of their media, what a pity