03.20.2001
Loop affected as KG Telecom deal falls behind schedule

• Loop Telecom (4902 'Xing Tong') reported February revenue of NT$62m, up 150% MoM and 184% YoY.

• Loop has set a 2001 revenue target of NT$0.87b, inclusive of the NT$0.5b contract received from KG Telecom (unlisted) for DSU/CSU.

• Shipment on the contract was originally slated for completion in 2001. However, KG Telecom has delayed shipment as construction of the base station where it is to install the DSU/CSU has fallen behind schedule. Full shipment is expected by 2002.

• We expect Loop's revenue to drop to NT$0.8b this year, with adjusted EPS of NT$6.26.

• We continue to maintain a close watch on this telecom upstart, which has seen a dramatic 100%-plus share price surge on a very thin free float since listing on 1 February.

BennyLo@Primasia.com +886-[0]2-547-8869