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Zyxel Group Aims to Sustain Revenue Amid Market Challenges, Focuses on Emerging Tech

CEO Yang Guorong outlines cautious optimism for 2023, highlighting strategic growth in PON and Wi-Fi 7 sectors despite inventory adjustments
z 3704.TW Mid and Small Cap 2000 Tech 350
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Zyxel Group, during its recent press briefing, shared insights into the current market dynamics and its strategic outlook for the year. CEO Yang Guorong conveyed a tempered approach, emphasizing the company’s intent to uphold last year’s financial performance levels amidst ongoing inventory adjustments by distributors and conservative order placements by customers.

The tech firm, navigating through decreased order visibility and a cautious customer sentiment, is setting its sights on innovation and sector-specific growth to steer through the challenging landscape. Yang highlighted the promising prospects of 2.5G Passive Optical Network (PON) technologies and the rollout of Wi-Fi 7 high-end products, anticipating a shipment uptick as more accessible product ranges hit the market. Moreover, significant advancements are expected in the defense product segment, aligning with the company’s diversification strategy.

Geographically, Zyxel is facing varied market conditions: a notable downturn in the United States and Canada, stability in Europe, and an optimistic double-digit growth forecast for Asia, with specific attention on India’s market potential in the latter half of the year. Central and South American markets are also on the company’s radar, approached with caution due to inherent financial risks.

The financial figures reflect the prevailing industry headwinds, with a 40% year-on-year dip in revenue for the initial months of this year, following a 12.6% decrease in the previous year’s after-tax surplus. However, the silver lining remains the company’s robust product diversification, with significant contributions from fiber broadband and a notable presence across various global markets, especially in Europe and emerging Asian territories.

Zyxel’s resilience is evident in its strategic focus and adaptive measures, aiming to leverage its technological advancements and geographical outreach to navigate the current fiscal climate while setting the stage for future growth.

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