ACL Semiconductors--distributor of Samsung and other memory chip products, including DRAM, Flash, SRAM and Mask ROM products for the Hong Kong and Southern China markets--announced that a letter to shareholders has been released to keep investors informed of company progress and goals ahead for 2007.
The company has established a strategic distribution alliance with Semiconductor Manufacturing International (Chengdu) Corporation (SMIC)—the semiconductor manufacturer in mainland China with ADS shares traded on the NYSE under the ticker SMI. The newly developed relationship with SMIC provides our existing customers with an array of memory products and price points from which to choose; further, the relationship has opened doors to attract new customers. The company is confident that SMIC relationship will contribute to an increase in revenue and gross margins for 2007.
According to the company management is currently exploring synergistic opportunities to enhance future shareholder value. In particular, company is exploring a business combination with an existing factory for the assembly of consumer electronic products on an OEM or ODM basis. The purpose of this strategic move would be to vertically integrate memory component distribution business and provide for immediate increases to gross and operating margins, especially if such a transaction enables the consolidation of the financial results.
