03.29.2001
Picvue's PDA LCM shipment hit by Palm announcement

• Picvue's (2333 'Bi You') 2001 STN-LCD module shipment will come in lower than the company's and our expectations following Palm's announcement yesterday that it faces bleak sales results this quarter. Palm will also cut staff numbers by 250.

• Palm indicated that the weakening US economy has started to hurt its PDA business. Picvue's PDA LCM shipment to Palm accounted for around 50% of total PDA LCM output last year. Revenue on STN-LCD used in PDA contributed around 55% of total revenue last year.

• Due to slowing PDA and handset growth this year, we have adjusted our 2001 forecasts. We revise revenue forecast down to NT$8.8b from NT$9.7b, and EPS to NT$1.46 from NT$1.64. We downgrade our recommendation to HOLD from Buy on a target price of NT$37.

• Picvue reported 2000 preliminary revenue of NT$7.06b (68% YoY growth), pretax of NT$930m (102% YoY growth) and net profit of NT$519m (or EPS of NT$0.87, up 27% YoY). The company will distribute a 10% stock dividend and a 5% cash dividend.

MathaChen@Primasia.com +886-[0]2-2547-8878