HTC 2009 Annual Report Download - page 23

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BUSINESS OPERATIONS
MAJOR SUPPLIERS/CUSTOMERS REPRESENTING AT LEAST 10% OF GROSS PURCHASE/REVENUE FOR MOST
RECENT TWO-YEAR PERIOD
PRINCIPAL CONTRACTUAL AGREEMENTS
Principle current contractual agreements shown below were effective or expired during the most recent reporting period and as of the date
of printing.
Contractor Contract Term Description
ALCATEL LUCENT November 2009 - November 2012
> Authorization to use 2G (GSM/GPRS/EDGE/CDMA), 3G (CDMA2000/WCDMA),
HTML, MPEG, AMR patent license or technology;
> royalty payment based on agreement.
Microsoft February 1, 2009 - January 31, 2011
> Authorization to use embedded operating system;
> royalty payment based on agreement.
Telefonaktiebolaget LM Ericsson December 15, 2008 - December 14, 2013
> Authorization to use platform patent license agreement;
> royalty payment based on agreement.
Siemens Aktiengesellschaft July 1, 2004 to the expiry dates of these patents.
> Authorization to use GSM, GPRS or EDGE patent license or technology;
> royalty payment based on agreement.
KONINKLIJKE PHILIPS ELECTRONICS N.V. January 5, 2004 to the expiry dates of these patents
> GSM/DCS 1800/1900 Patent License;
> royalty payment based on agreement.
InterDigital Technology Corporation December 31, 2003 to the expiry dates of these patents.
> Authorization to use TDMA and CDMA technology;
> royalty payment based on agreement.
MOTOROLA, Inc. December 23, 2003 to the latest of the following dates:
> TDMA, NARROWBAND CDMA, WIDEBAND CDMA or TD/CDMA Standards
a. Expiry dates of patents patent license or technology;
b. Any time when the Company is not using > royalty payment based on agreement.
any of Motorola's intellectual property,
Ericsson Mobile Platform AB April 2003 - March 2011 > Authorization to use EDGE reference design license and support agreement;
> royalty payment based on agreement.
Nokia Corporation January 1, 2003 to the expiry dates of these patents.
> Authorization to use wireless technology, like GSM; royalty payment based on agreement.
Qualcomm Incorporated. December 20, 2000 to the following dates:
> Authorization to use CDMA technology to manufacture and sell units;
a. If the Company materially breaches any covenant and fails > royalty payment based on agreement.
to take remedial action within 30 days after Qualcomm's
issuance of a written notice, the Company will be prohibited
from using Qualcomm's property or patents.
b. Any time when the Company is not using any of
Qualcomm's intellectual property, the Company may
terminate this agreement upon 60 days' prior
written notice to Qualcomm.
1. Major suppliers representing at least 10% of gross purchase
(Amount in NT$ millions)
2010 1Q 2009 2008
As % of 2010 1Q Relation As % of 2009 Relation As % of 2008 Relation
Supplier code Amount Net Purchases to HTC Amount Net Purchases to HTC Amount Net Purchases to HTC
a$ 4,625 20 None $ 14,546 20 None $ 13,992 18 None
Others $ 18,446 80 $ 57,069 80 $ 63,133 82
Total $ 23,071 100 $ 71,615 100 $ 77,125 100
2. Major customers representing at least 10% of gross revenue
(Amount in NT$ millions)
2010 1Q 2009 2008
As % of 2010 1Q Relation As % of 2009 Relation As % of 2008 Relation
Customer Code Amount Revenues to HTC Amount Revenues to HTC Amount Revenues to HTC
A$ 7,647 20 None $ 28,816 20 None $ 21,632 14 None
B$ 3,791 10 None $ 27,214 19 None $ 21,371 14 None
C$ 3,109 8 None $ 12,662 9 None $ 26,867 18 None
D$ 5,701 15 None
Others $ 17,449 47 $ 76,189 52 $ 82,689 54
Total $ 37,697 100 $ 144,881 100 $ 152,559 100
PRODUCTION AND SALES FOR MOST RECENT TWO-YEAR PERIOD
Production
Unit: 1,000 units / NT$ millions
2009 2008
Production Capacity Production Quantity Production Value Production Capacity Production Quantity Production Value
Smart phones 16,848 12,308 75,846 16,848 12,567 79,158
TOTAL 16,848 12,308 75,846 16,848 12,567 79,158
Note 1: Production capacity represents the normal capacity of current production equipment after making adjustments for necessary production stoppages, non-work holidays, etc.
Note 2: Each product has an alternate(s) that are added in calculations of production capacity.
Sales
Unit: 1,000 units / NT$ millions
2009(note) 2008(note)
Domestic Sales Export Sales Domestic Sales Export Sales
Quantity Value Quantity Value Quantity Value Quantity Value
Smart phones 473 4,524 11,238 132,042 272 3,075 11,755 142,275
Other Items (accessories) 889 94 34,285 6,828 122 48 25,160 5,105
TOTAL 1,362 4,618 45,523 138,870 394 3,123 36,915 147,380
Note: Main product item data not inclusive of income from maintenance / repairs or product development work.