BenQ posts 6th straight quarterly loss on declining sales

Taiwan's BenQ reported its sixth straight quarterly loss on a further decline in handset sales and increased interest payments, an Associated Press report said.

The Associated Press report said the firm would spin off its branded operations to focus on contract manufacturing.

The company reported a net loss of NT$ 1.76 billion ($53.3 million) for the three months ended March 31, down from a net loss of NT$5 billion ($150 million) in the year-earlier period.

The report said BenQ's string of quarterly net losses followed its takeover of Siemens' handset-making division in late 2005.

The company had difficulty integrating the loss-making unit, eventually liquidating it, which reduced its handset output.

In a restructuring, BenQ said it will spin off its BenQ-branded operations in September, when it will rename itself Jia Da and focus on contract manufacturing, the report further said.