Legend gets a flash of growth
- 10 August, 2005 07:15
Adelaide-based Legend Corporation has pointed to its flash-based product lines as the main source of an 80 per cent increase in operating profit over the last financial year.
The ASX-listed memory distributor and manufacturer generated a net operating profit of $4.7 million for the year to June 30, 2005. Its sales across A/NZ and South Africa also increased from $92.6 million in 2004 to $116.7 million in 2005, a growth rate of 26 per cent.
CEO, Bradley Dowe, said the market's strong demand for flash memory-enabled CE products such as digital cameras, MP3 players and mobile phones, had provided the momentum for the company's strong growth.
"Three years ago flash memory barely existed in the market," he said. "Now traditional memory-based products, including flash, are about 70 per cent of our revenues and we expect that figure to grow this financial year."
Strong support from Legend's stable of complementary vendors had also validated the distributor's approach to the channel, Dowe said.
"Where there's memory there are motherboard, hard drive and CPU sales to be made," he said.
Sales director, Rob Kester, said the company had seen an increase in electronics integrators combining vendor offerings to create vertically targeted products such as vehicle-based GPS systems.
"Previously end-users have bought our products but as part of another vendor's offering," he said. "But we have seen huge growth in our own brand of products and are hoping to double the range available on mass merchant shelves."
Looking ahead, Dowe said the ASEAN region, which contributed $50 million in revenue over the year, would prove to be a major source of growth in the current financial year. The driving force would be its new Singapore production facility, which would open shortly.
The premises would have a staff of 60-100, he said.