07.18.2001
Realtek’s long-term outlook remains positive

• Findings: Low earnings visibility in 2H01 with flattish monthly sales for July. August results may provide better gauge on 2H01 outlook, given seasonal factors.

• Analysis: In 3Q01 we expect a slight QoQ decline in top line, caused by high base achieved in 2Q01. By 4Q01, revenue likely to surge with seasonal demand.

• Primasia View: We are confident that our 2001 forecast can be met. Future growth drivers include firm’s advantageous market position in both network interface cards and LAN on Motherboard. Current PE at 19 times, falling to 16 times on forward earnings for 2002, which we find attractive.

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