CMC to increase output of 16X discs also shipping DL DVD+R

September 10, 2004

CMC Magnetics will be
increasing production of 16x DVD+R discs from 10% of the total sales volume
of DVD+R discs, to 30-40% in the fourth quarter of this year.

Currently, 8x DVD+R discs account for 90% of the company's
shipments of DVD+R discs, Wong indicated. As sales of 16x DVD burners
increase, CMC expects growing shipments of 16x DVD+R discs, and with OEM
quotations of US$ 0.80, 16x DVD+R discs have gross margins of 40-50%, much
higher than the 30% margins and US$ 0.50-0.60 OEM price of 8x discs,
company vice president and spokesperson Andria
Wong.

In addition to 16x DVD+R discs, CMC has begun to ship 8.5GB
DVD+R DL (single-sided double-layer) discs in small volumes at an OEM
price of US$ 5, according to
Wong.

Source: Digi-Times