VTech Holdings, a Hong Kong-listed manufacturer of cordless phones and electronic toys, would expand its operations outside its key market of North America, chairman Allan Wong Chi-yun said yesterday. The company is seeking to boost its exposure in the Asia-Pacific and other regions such as South America, where sales have been less affected by the global financial crisis. 'The revenue from Asia-Pacific and other markets now is less than 10 per cent, which represents a huge growth potential,' said Mr Wong (right). 'We expect to double that at the end of this year to 20 per cent.' The company announced a new three-year contract yesterday to supply fixed-line phones to Australian telecommunications giant Telstra Corp, its first direct presence in that country. VTech reported a 33.6 per cent decline in net profit for the year to March to US$143.2 million on a 6.7 per cent drop in revenue to US$1.448 billion. It declared a final dividend of 41 US cents per share, down from 51 US cents. North America contributed 53.4 per cent of VTech's revenue in the financial year, and revenue generated there fell 11 per cent to US$772.8 million. Sales from the Asia-Pacific dropped 1.6 per cent to US$55.2 million but contributed only 3.8 per cent of the group's revenue. Mr Wong said orders in the April-June period had slightly improved from the beginning of the year. However, it would be difficult for revenue to grow in the year to March 2010, he said. 'Things [will be] better in the next three months, because retailers have started purchases and our market share is increasing,' he said, adding that the company was healthy, with cash of US$300 million. Shares in VTech closed 1.77 per cent higher at HK$40.20 yesterday.