05.09.2001
Realtek's 2Q01 results put a spring in its step

• Realtek Semiconductor Corp. (2379 'Rui Yu') announced April revenue of NT$622m, in line with previous guidance and our own expectations. This translates to MoM and YoY increases of 10.5% and 24%, respectively, and represents a historically high monthly revenue figure. Total revenue from January to April came in at NT$1.94b, achieving 30% of the company's forecast of NT$6.5b for 2001, or 28.5% of our forecast.

• Realtek is confident on the outlook for May, with NT$600m in orders already received for May. However, visibility is low for June. We expect 2Q01 results to beat Realtek's forecast of NT$1.6b.

• With Realtek's solid position in communication IC, we anticipate it will continue to benefit from technological upgrading to broadband and from growing demand in China.

• VB Primasia Investment Opinion: We reiterate our ACCUMULATE recommendation on our 2001 forecast EPS of NT$8.40.

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