Venture Corp hurt by client Hypercom's exit in 2011
Verifone acquired Hypercom, one of its major networking and communications customers in 3Q11.
According to CIMB, in the company's networking and communications which account for 19% of sales, business was partly affected by Verifone acquiring one of its major N&C customers Hypercom in 3Q11. The management believes things have stabilised now and the group is in fact trying to make more inroads into Verifone.
Here's more from CIMB:
Life science and medical (less than 5% of sales) – Although contributions from these segments are currently small, the group sees good growth potential. According to management, most of the key manufacturers of heart defibrillators are already customers of Venture. It is also the key supplier of several of the life science OEMs. Most of them are based in Europe and Venture is trying to help them outsource to Asia.
Retail store solutions and Industrial (RSS and Industrial; 29% of sales) – RSS and Industrial are about equal in size now due to the strong growth in industrial-related businesses. Venture expects the industrial business to continue to see healthy growth due to the expansion in its product offerings to existing and potential new customers. RSS, on the other hand, is a fairly mature industry. Venture is in close communication with Toshiba following the sale of the IBM POS business to the latter. It hopes to extend its services to Toshiba as it is the main ODM provider for IBM POS.