11 August 2005 – Trek reports revenue rise by 38%

Main board listed engineering solutions provider, Trek 2000 International Ltd (“Trek” or “the Group”) today announced a 38.1% increase in turnover and a 98.6% rise in net profit after tax for the first six months ended 30 June 2005.

The turnover of the Group rose 38.1% from $67.3 milion to S$93.0 million for the six months ended 30 June 2005. The gross profit reported was lower from S$6.7 million in the first half of FY2004 to S$4.8 million in the first half of FY2005 arising from the current competitive environment where the Group experienced lower margins, compensated by the Group’s endeavour to build up revenue volumes.

The Group also recorded net profit after tax margin which rose from 1.5% in first half of FY2004 to 2.2% in first half of FY2005. The Group’s performance is mainly attributable to its ability to receive recurring licensing fees, with the Group’s build-up of this new revenue model arising from its library of patents which now stands at 30.

The High Court’s validation of Trek's status as the true innovator of the USB portable storage device technology on 12 May 2005 has strongly endorsed Trek as a leading Intellectual Property (“IP”) technology-based organisation. Trek’s business performance will now continue to be driven by the expansion of its products/solutions along its IP based technology lines.

Commenting on Trek’s performance, Mr. Henn Tan – Chairman and CEO of Trek said: “the events in the first six months of this year were extremely important for the Group. The validation of our IP ownership rights and the strategic distributor relationship that we established with Imation has paved the way for the further growth of the Group. With some of the key structures in place, we can now further drive our attention and resources in R&D to bring more solutions to the market.”

On its prospects for FY2005, the Group is confident that it will be profitable in view of the growing acceptance and usage of its ThumbDrive® solution and the strong sales capabilities provided through its key customers having global distribution network.

Download detailed results here.