ATEN Named One of Asia's Best 200 under a Billion by Forbes
 
 
ATEN International (6277) is named one of Asia's 200 Best Under a Billion this year by Forbes. ATEN is one of the world's leading vendors of KVM switches and chosen this year by Forbes along with thirty other companies in Taiwan on the strength of steady growth and outstanding profit performance.


According to Forbes report, Taiwan stands out this year with the strongest presence on the list. Most of the Taiwanese companies on the list are producing niche components for big companies, such as ATEN International that makes KVM switches to control PC and servers, but staying amazingly profitable when the prices of their customers' products are falling. The key to their success is to "pick their battles well" by targeting a niche too small and insignificant to arouse the interest of their customers to take it on but vital enough to the finished products that they can keep some loyalty from their customers, because the customers do not wish to see any recall of their products due to a defective component. Thus, being really good and small, satisfying customers' need and continuously investing in research and development to keep the cutting-edge technology are the key to push new players having a hard time matching quickly and to the success of ATEN's management.


Forbes would assemble of list of Asia's best 200 under a billion every year. The criteria for entry include at least 5% net profit margin, solid performance in sales, profit, and return on equity, and management capabilities of top executives. The overall performance of the companies that make the Forbes list last year outperformed its benchmark index ---- FTSE Small Cap Asia-Pacific. In the case of ATEN, the company has achieved EPS of at least NT$6 each year for nine years in a row. As entering to the tenth consecutive year, the company has garnered EPS of more than NT$6 already for the first three quarters.


According to Mr. Eric Yu, the CFO of ATEN International, KVM switch, the core product of ATEN, is a vital and indispensable part of every server room. Thus once ATEN earns the customers' recognition, they rarely make a switch to other suppliers. On the other hand, ATEN has been continuously upgrading its product technology and quality which not only sets up a higher entry barrier for new players, but also has sequentially improves its gross margin, even breaking new high. Its EPS for the first three quarters this year has reached NT$6.28, ranking 19th among the listed companies in Taiwan Stock Exchange.
Last Twelve Months (in US$ million)
Sales Operating income Net Income Market value
$120 $27 $18 $239



Last Twelve Months Three-Year Average Five-Year Average
Price/Sales 2 Sales Growth 24% Sales Growth 29%
EV/EBITDA 1 8 EPS Growth 14% EPS Growth 20%
Price/Earnings 13
Debt/Equity 8% Return on Equity 26% Return on Equity 29%
  Note:
   1 EV/EBITDA: Market value of common plus debt, by operating income, that is, earnings before
   interest, taxes, depreciation and amortization.
   Source: Worldscope via FactSet Research Systems; Forbes, September 28, 2006

About the KVM Switch
KVM (Keyboard, Video and Mouse) switches are control units that allow access to multiple computers from a single console. Before the development of KVM switches, the only way to control multiple computers from a single console was through a complex and costly network. Now, with the KVM switch, people can easily access multiple computers or platforms (from 2 to up to 4096) in a convenient, space saving and cost effective manner.


About ATEN


ATEN International Co. Ltd. is specialized in connectivity solutions in the information technology since its establishment in the year of 1979 and is today considered as the undoubted most important manufacturer of KVM Switches worldwide. This prominent position was reached by continuously high investments in research and development, which settle also in numerous patents and become apparent, for example, by the sophisticated ASICs, which are developed in the ATEN labs and manufactured by ATEN. More than 20 percent of ATEN's employees worldwide work in R&D laboratory. They ensure for the fact that annually more than 50 new products come on the world markets. The product range today covers hundreds of connectivity products from the small USB hub up to the powerful KVM switches of the Master View family for managing more than 500 computers. Among the customers of ATEN rank the large, worldwide acting companies likewise as midrange and small businesses as well as ambitious private users. For further information see www.aten.com.