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VTech Holdings Ltd Annual Report 2011 13
US$ million
200
400
600
800
0
1,000
07
880.9
08
868.2
09
772.8
10
872.6
11
874.9
Revenue in North America in Last 5 Years
VTech Holdings Ltd Annual Report 2011 13
Revenue in North America rose by 0.3% to
US$874.9 million in the financial year 2011,
as higher sales of ELPs and CMS offset lower
revenue from TEL products. North America
continued to be the largest market for
the Group, accounting for 51.1% of Group
revenue.
Sales of TEL products during the financial
year declined by 18.3% to US$421.1 million.
As noted at the interim, this decrease partly
reflects comparison with a very strong
performance in the previous financial year,
when one of our major competitors exited
the market and another suffered a delivery
problem. The natural decline in the US
cordless phone market also contributed to
the decrease in sales. Nonetheless, the Group
was able to maintain its market share and its
number one position in the US corded and
cordless phone market, with an estimated
share of almost 50%*.
Sales of the SMB telephony systems remained
small, as this product category has been
in the market for less than two years. We
have made good inroads into this sizeable
market through our expanding distribution
network of office superstores and value
added resellers. In the second half of the
financial year, the Synapse T1/PRI Gateway
was launched. This new product supports
100 extensions and up to 39 lines with
Direct Inward Dialling when paired with the
SB67010 PSTN Gateway, offering an effective
solution for businesses that require additional
outside lines.
ELP sales in North America grew by 22.2%
to US$287.1 million. The growth was led by
two new platform products, MobiGo and
V.Reader, which reached US retailer shelves
in June 2010. Despite competition from two
other new platform products in the holiday
season, both MobiGo and V.Reader delivered
strong sales.
North America
Standalone products also achieved good
growth in the financial year 2011. Infant
products continued to be the best selling
category, and our new range of bath toys did
well. Year-on-year growth in the pre-school
category was also strong, fuelled mainly by
new generic and licensed products.
CMS posted the strongest growth in North
America, with sales rising by 36.2% to
US$166.7 million. The growth was broadly
distributed across all product segments.
Economic recovery and additional business
from existing customers were the key
drivers of growth, as the Group continued
to win business from its competitors due
to our superior performance as a supplier.
Professional audio equipment remained
the leading contributor to CMS revenue in
North America, while commercial solid-state
lighting showed the strongest growth.
* NPD, combined market share of VTech and AT&T,
as of Q1 2011