Hypertec is now planning for half its revenues next year to come from exports to Asia following its purchase of a 75 per cent share in AM Distribution, the Singapore-based distributor of PC memory and peripherals.
Recovering from a brief foray into PC manufacturing, the move sees Hypertec further return to its core business of manufacturing memory products and niche IC products.
These include its recently-released HyperRace upgrade that gives 486-based PCs near Pentium performance.
The 75 per cent share of AM Distribution bought by Hypertec was previously owned by Aust-ralasian Memory, which is now being liquidated.
Geoff O'Reilly, managing director of Hypertec, said the move would expand the company on two fronts by enhancing product mix and increasing sales territories.
"We plan for revenues from Asia to be about 50 per cent of our projected total revenues of $100 million in 1998," O'Reilly said.
"AM Distribution has a long-term contract to sell Compaq options throughout South-East Asia," said O'Reilly. Options include monitors, hard disk drives, specialised keyboards and memory.
To this Hypertec will be adding its own range of memory products sourced from its existing suppliers, which include Samsung, TI and Siemens.
While Australasian Memory handled Kingston's memory products in Australia, distribution of that company's products in South-East Asia was through other companies.
Fast market growth
"Our major customers in South-East Asia will be the tier-one dealers in the region," said O'Reilly.
As well as buying out AM's interests in AM Distribution, Hypertec also bought part of the stock of AM in Australia.
"Our move into Asia is our first strategic sortie into the region," O'Reilly said. "The South-East Asian PC market is growing at 30 per cent a year," he continued. "The PC options market is growing even faster," he said.