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Pegatron has appointed Johnson Deng and Gary Cheng to succeed incumbent CEO Syh-Jang Liao as the company’s co-chief executive officers.

Deng has been with Pegatron for 27 years and is currently the president of the fifth business division. He is in charge of major notebook, PC, and consumer electronics customers.

Cheng has been with Pegatron for 29 years and previously served as an R&D supervisor. He is currently president of Pegatron subsidiary AzureWave Technologies.

Pegatron noted that Deng has an extensive background in IT and consumer electronics applications, while Cheng has vast experience in R&D.The company believes they will be able to create synergy and share the pressures brought on by Pegatron’s continuous expansion.

Liao has been serving as Pegatron CEO for more than six years. After he steps down as CEO he will continue to serve as a director, as well as chairman of substrate subsidiary Kinsus Interconnect Technology.

Having co-CEOs is not uncommon among Taiwanese tech companies, with companies such as TSMC, Acer, Asustek, and Wistron paving the way.

Whether there will be other internal organizational changes in response to executive changes is still unclear. Pegatron said if there are other changes, they would be announced as soon as possible.

Pegatron’s second-quarter revenue amounted to NT$283.66 billion (US$945.38 million), a 12.4% on-quarter decrease and 4.2% on-year increase. Gross margin reached 5.1% for an on-quarter increase of 1.6% and on-year increase of 1.5%. Net operating profit totaled NT$6.55 billion an on-quarter increase of 55% and on-year increase of 143.1%. Pegatron’s July revenue came in at NT$107.97 billion for a 6.06% decrease on quarter and a 22.07% increase on year.

Despite the slight revenue decline in the second quarter, Pegatron noted that profit performance improved significantly. This is mainly attributed to the strong shipment momentum of consumer products, improved product mix, and good performance of its subsidiaries.

In the third quarter, Pegatron estimates that notebook shipments will increase 20-25% on quarter while desktop computer and motherboard shipments will decrease by 30-35%. The company believes that non-computing products will see significant on-quarter growth.

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