Syntax-Brillian and Other TV Sales Hurting in Weak U.S. Economy

A recent report from Digitimes suggests that sales for Syntax-Brillian's (BRLC) Olevia televisions may be hurt by the weak US economy during the second quarter of calendar 2008. The report stated that both Kolin and Teco Electronic & Machinery, who are in a three-way alliance with Syntax-Brillian to manufacture Olevia televisions, reported that they would not receive as many LCD TV OEM orders as expected in the second quarter. Kolin has trimmed their outlook from 350,000 units to 230,000 units while Teco was stated having trouble meeting their goal of 600,000-700,000 units.<!--more-->

Kolin has been Syntax-Brillian's long-standing main contract manufacturer while Teco entered into the strategic partnership back in September 3, 2007. Teco originally invested $20 million into Syntax-Brillian for at 3,083,945 shares of common stock priced at $6.4852 per share. With Syntax-Brillian trading around $1 per share currently, their investment is now worth almost 85% less.