Market gains bolster revenue prospects for media storage makers
By Ted Chen ,The China Post
January 9, 2014, 12:00 am TWN
TAIPEI, Taiwan -- Shares of Ritek (萊德) and CMC Magnetics Co. (CMC, 中環) yesterday recorded gains of 1.8 percent and 3.33 percent respectively, as investors anticipate growing sales numbers from the two media storage makers.
Investors are expecting sales results for the two companies to reach new heights this year, propelled by the release of two high-profile video game consoles that utilize Blu-ray discs towards the end of last year, and the lifting of a ban on video game consoles in the vast China market. Most notably, the Blu-ray storage media has been selected for adoption by both Sony's Playstation 4 and Micrsoft's Xbox One gaming consoles. Incidentally, the Blu-ray format was first adopted by Sony's Playstation 3, released in 2006. Since their respective launches, Sony has sold 4.2 million video game consoles while Microsoft's offering has sold more than 3 million units worldwide.
In addition, CMC recently unveiled its series of Blu-ray discs, including the single layer high-longevity BD-R SL with capacity of 25 gigabytes (GB), dual layer BD-R DL 50 50 GB, and the triple-layered BD-R TL 100 GB.
CMC stated that the company is committed to developing leading edge applications of digital storage media, such as the high-longevity BD-R 25GB and BD-R 50GB Blue-ray discs, which are ideal for deployment in cloud computing data centers. According to the company, Blue-ray discs will allow data centers to perform reading and writing data processing, and provide backup redundancy at minimal energy consumption. Blue-ray enabled data centers are ideal for applications by government departments, medical facilities, libraries and military installations while conforming to low carbon emission guidelines, said CMC, adding that its discs have received certification from TUV Rheinland.
Currently, playback of 4K2K ultra-high definition content on TV is simulated from Full HD content via image processing chips, said CMC. The company stated that as more and more "true" 4K2K content becomes available, sales of its multi-layered and high capacity Blu-ray discs are expected to rise dramatically, while mentioning that the Japan market has began the migration towards the even sharper 8K4K video resolution.
Shares of CMC yesterday closed at NT$4.99, up NT$0.09, while Ritek shares reached NT$5.15, gaining NT$0.17.