TAITRON SALES DROP 49 PERCENT VALENCIA COMPONENT BUSINESS STRUGGLING.Byline: Daily News VALENCIA - Taitron Components Inc. suffered a 49 percent sales decrease in 2001, its first annual loss since 1991, the heart of the previous big recession. The Valencia company, which manufactures transistors, diodes and other discrete semiconductors, says it's on solid footing and anticipates a better 2002. But a letter to stockholders sent last week by board Chairman Johnson Ku and Chief Executive Officer Stewart Wang painted a bleak The bleak is a small pelagic fish of the Cyprinid family. Description The body of the bleak is elongated and flat. The head is pointed and the relatively small mouth is turned upwards. The anal fin is long and has 18 to 23 fin rays. The lateral line is complete. picture. ``The year 2001 was a very challenging year for us. Not only was the year 2001 one of the largest cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. downturns in the electronic distributor industry, but also a beginning to an economic recession,'' the letter reads. ``While sales decreased by 49%, we were able to reduce costs only by 17%. Unfortunately, our cost reduction programs did not take full and complete effect until later in 2001; as such, we posted a net loss of $1.2 million. This is the first annual loss we incurred since 1991.'' But the company leaders predicted a turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. . ``However, on the positive side, we feel that the decline in sales has finally stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. and that our first quarter results of 2002 will show sequential improvements, and more importantly, provide some positive signs that the cyclical downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. may be over.'' Taitron managed to reduce its total debt by 22 percent by cutting inventory. Founded in 1989, Taitron is known for low-cost devices used by other electronics distributors and equipment manufacturers. Until last year, the company was the largest in the beleaguered be·lea·guer tr.v. be·lea·guered, be·lea·guer·ing, be·lea·guers 1. To harass; beset: We are beleaguered by problems. 2. To surround with troops; besiege. semiconductor industry. The goal is to reclaim that title. ``Moving forward into 2002, our biggest challenge ahead of us is to reposition ourselves as the leading supplier of the low-cost discrete components An elementary electronic device constructed as a single unit. Before integrated circuits (chips), all transistors, resistors and diodes were discrete. They are widely used in amplifiers and other devices that use large amounts of current. in the Americas,'' the letter to stockholders reads. The strategy includes plans to increase Taitron's product line, improve inventory, increase computer orders, partner with distributors and open additional offices. |
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