07.04.2001
IC design houses: The gloom continues

• Development: Elan reported June revenue of NT$365m, a flat month when compared to May. Faraday, on the other hand, estimated its figure to come in at NT$170m, a 13% MoM decline, falling short of its previous forecast of NT$200m.

• Analysis: YtD, both companies have attained less than 40% of their respective 2001 forecasts. We expect the economic environment to be a key determinant for their performance in 2H01.

• Primasia View: Without indications of a pick up in demand from the end market, we maintain our recommendation for both shares.

AngelLo@Primasia.com +886-[0]2-2547-8864