Vtech 2006 Annual Report Download - page 19

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Review of
Operations
The CMS business again delivered good
results in the financial year 2006, with a
second record year of revenue. The solid
performance reflects the positive state of the
overall EMS market and increasing orders
from existing customers.
Contract Manufacturing
Services
VTech Holdings Ltd Annual Report 2006
16
The CMS business again delivered good
results in the financial year 2006, with a
second record year of revenue. Revenue
rose by 23.2% over the financial year
2005 to US$158.2 million, representing
13.1% of Group revenue, up from
12.6% in the previous financial year.
The solid performance in part reflects
the positive state of the overall
electronic manufacturing services
(EMS) market which expanded by
approximately 10% in the calendar
year 2005. The rise in revenue was,
however, also driven by increased
orders from existing customers in all
segments, as well as new accounts,
including those for LED lighting systems
and handheld wireless audio-visual
devices for on site sports events.
The switching mode power supply and
professional audio equipment segments
continued to account for the majority
CMS Revenue by Region
Europe 47.1 74.5
North America 29.5 46.6
Asia Pacific 23.4 37.0
Others – 0.1
Total 100.0 158.2
2006
%US$ million