06.07.2001
VIA sees sluggish demand

• Chip maker VIA Technologies (2388 'Wei Sheng') expects revenue in June to beat market expectations of NT$2.0b. However, with disappointing NT$2.7b revenue result last month, the company is unlikely to achieve its 2Q01 revenue target of NT$9.8b. VIA nonetheless remains positive it will meet its 2Q01 profit target of NT$1.54b.

• Looking forward, although the inventory levels of downstream customers have significantly decreased, VIA expects demand to continue to remain soft in 3Q01 as the slow summer holiday season keeps the lid on end market demand.

• VB Primasia Opinion: We do not foresee any recovery in demand in 4Q01. While seasonal upturn will make for slight improvements, 2001 financial target is some way off. VIA will have to earn 64% of its full-year revenue forecast in the remaining seven months in order to meet target.

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