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VTech Holdings Ltd Annual Report 2004
2
Combined with a strong balance sheet,
well-recognised brands and a
comprehensive distribution network in
North America and Europe, these
competitive advantages well position the
Group for further revenue and profit
growth.
Outstanding Performance
from Telecommunication
Products
The major contributor to higher revenue
and profit at the Group was an increase
in sales at the telecommunication
products business, reflecting the
continued success of its customer-centric
strategy, and ability to launch new and
innovative products.
Sales growth was led by the VMIX
2.4GHz cordless phones sold under the
VTech brand targeting the teenage
segment and offering innovative features
such as recordable ring tones. Sales of
other products, especially 5.8GHz
cordless phones under both AT&T and
VTech brands, also recorded significant
growth during the financial year.
As a result of the substantial increase in
sales of both AT&T and VTech branded
products, VTech continues to be the
largest supplier of corded and cordless
Letter to Shareholders
“I am pleased to report a successful year for VTech as we
posted a 5.6% increase in revenue to US$915.2 million
and a 13.5% increase in net profit to US$46.3 million for
the financial year ended 31st March 2004. Earnings per
share rose 13.3% to US20.5 cents per share.”
Allan WONG Chi Yun
Chairman
Letter to
Shareholders
This was a particularly notable
performance given the
challenges faced during the year.
These included the disruption in the
supply of certain key components for our
telecommunication products, reduced
shelf space for our electronic learning
products in North America and a shortfall
in orders for contract manufacturing
services.
Although the increase
in revenue was small, it
marked an important
milestone for VTech as
the Group finally
returned to a path of
revenue growth
The performance testifies the Group’s
success in enhancing market
understanding, operational efficiency
and customer service over the past
two years. This has made VTech a
more focused, efficient and
market-driven company, able
to respond to market
needs in a timely and
cost effective manner
with innovative
products.
VTech Holdings Ltd Annual Report 2004