02.16.2001
Realtek expects revenue of NT$1.2b in 1Q01

• Realtek Semiconductor Corp. (2379 'Rui Yu') predicted yesterday at its investors' conference that revenue in 1Q01 may reach NT$1.2b. However, it admitted that it cannot be certain as to when the economic cycle will move into recovery phase.

• The company is optimistic that inventory correction and the popularity of new products like Codec and Clock Chip will drive up revenue early next year. Revenue growth in 2H01 will be determined by the development of LOM (LAN on motherboards) and market reaction to it, as well as Realtek's overall competitiveness. VIA (2388 'Wei Sheng') will be a major competitor in this area. Realtek conservatively expects 20% revenue growth in 2001.

• We believe demand for networking ICs will continue to grow in 2001 and are confident on Realtek's competitiveness in terms of pricing strategy and product quality.

AngelLo@Primasia.com +886-[0]2-2547-8865