03.13.2001
February flops for MTI

• Microelectronics Technology Inc. (MTI, 2314 'Tai Yang') reported disappointing results in February. Revenue was only NT$357m, down 25% MoM.

• The decline is mainly due to reduced shipment of Local Multipoint Distribution Service (LMDS) to Netro. Lucent likely has a hand in the falling orders as it is Netro's major client.

• We believe the slowdown on LMDS will last through 1Q01, until Lucent has completed its restructuring efforts.

• We maintain our conservative stance on MTI and recommend HOLD.

BennyLo@Primasia.com +886-[0]2-2547-8869