E-ink Lost More Money Last Quarter
Tablets seem to be swallowing up the ereader market, and if you had any doubts about that you could just take a look at E-ink’s finances.
E-ink released their quarterly financial report yesterday, and the news was not good. Profits were down last quarter, though E-ink does hope that revenues will increase in the second half of the year. The company showed a net loss in Q2 2012 of about $23 million dollars, which is a slight improvement over the previous quarter, where E-ink lost $27 million.
Never the less, E-ink is still optimistic that revenue will pick up in the second half of this year. Scott Liu, the chairman of E-ink, was speaking to investors yesterday. “The company’s revenue in the second half will grow significantly from the first half as the company’s main products are mostly used in consumer electronic products," he said.
Liu also mentioned that Amazon is expected to enter the Japanese market this year, and that one or more of E-ink 's North American customers (Amazon, B&N, Kobo) will be launching a new ereader later this year. E-ink is also expecting to see an uptick in revenue from Rakuten’s launch of the Kobo Touch in Japan. Rakuten rolled out their ereaders last month with shipments of a hundred thousand units.
And Liu also expected to see growth in other regions. “We were also surprised by Russian and Middle Eastern markets because demands in these two regions were higher than we expected, which will be a driver for our growth in the future,” he said.
Today’s news follow only days after an announcement that E-ink was buying out its rival, Sipix. E-ink now owns an 82% share in the lesser company, and plans to increase that to 100% by the end of the year.
Tyler August 8, 2012 um 7:14 am
They need to come out with a newer screen tech for e readers. Hasn’t Pearl been out for almost three years now? Otherwise the market for e readers is going to die as more and more 7 inch tablets come out.