CDW wins contract from Razer-backed Loupedeck, reports recovery in 2021

CDW Holding BXE has secured a deal to produce Loupedeck Live, a digital input video-editing console by Finnish tech start-up Loupedeck.

In a press statement issued on Monday (Jan 3), the Japanese-managed precision components specialist noted Loupedeck Live's popularity among video content creators.

It also highlighted Loupedeck's recent 2-million-euro (S$3 million) investment from the corporate venture capital arm of a "major Singapore gaming device brand listed on the Hong Kong Stock Exchange", which the Business Times understands to be Razer.

The value of the contract was not disclosed.

CDW also said orders from major customers of its equipment manufacturing (OEM) business have "recovered significantly" in 2021 to achieve a turnaround for the year.

The group largely credited its OEM subsidiary in Hong Kong, Tomoike Industrial, for working with key customers to set up its OEM business operations in Thailand and to "overcome the global difficulty in obtaining semiconductors which had also affected the mobile payments industry".

Shipment volumes as of Sep 2021 had nearly octupled as compared to 2020, according to CDW. The group also expects a recovery of shipment volumes to 2019 levels as at end-2021.

Commenting on Tomoike Industrial's recent set-up of a research and development (R&D) department to improve the profitability of its OEM business, CDW expects this new development to enable participation in the product development and design process of its primary customers.

"The expansion of existing OEM business, and the shift towards more value-added activities are encouraging votes of confidence from our customers. We are proud of our team's efforts to grow this business unit, in spite of the headwinds from global supply chain challenges, and Sino-US trade tensions," said Yoshikawa Makoto, chief executive and chairman of CDW.

Shares of mainboard-listed CDW were trading unchanged at S$0.25 as at 3.28pm on Monday, after the announcement was made.

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