Smart ID cuts sales target

Managing director Thomas Hongpakdee told The Nation last week that he had earlier targeted revenue of Bt200 million for the year, following revenue rises of more than 200 per cent last year and 600 per cent in 2006.

Smart ID Group has had to revise its target after failing to meet its first-half projection, due to the slowing economy and uncertain political situation. However, he declined to disclose the company's target for the first six months.

"It is a tough job for us to reach the goal after missing the target in the first half. So we have decided to revise down our revenue goal to Bt160 million this year," said Thomas.

Despite the revision, Thomas said the company's sales were still expected to grow by 77 per cent from last year's Bt90 million, adding that this was in line with growth in the computer market.

The company manufactures several IT products, ranging from mice, keyboards and speakers to Web cameras and flash drives, and sells them under its own Anitech brand. It also makes products for customers on an original-equipment manufacturer (OEM) basis.

Thomas said the company would achieve its new revenue target by introducing more new and trendy products across all market segments in the final quarter.

He added that Smart ID Group had also coordinated with logistics partners to minimise transportation costs and maximise the output of its workforce.

The OEM sector contributes 30 per cent of revenue to the company, while its Anitech brand contributes 40 per cent and the rest comes from distributing other firms' branded products.

Thomas said flash drives were the company's fastest-growing market. Smart ID Group recently won a contract from Toshiba to be its sole distributor for flash drives in Thailand.

The company is negotiating with three other flash-drive makers for similar exclusive distribution deals.

Smart ID Group has a joint-venture factory in China with local partners. Thomas said he would like to take over the plant but would not do so in the immediate future after learning of a possible hike in Chinese labour costs.

He said he might switch to investing in Vietnam if the Chinese plan did not come to fruition.