07.18.2001
Accton’s growth momentum remains strong

• Development: Company reported gross profit margin in 2Q01 of 20%, up from 19% in 1Q01 and compared to average 15.6% in 2000. Accton also anticipates monthly revenue will be maintained at NT$1.5bn in 3Q01.

• Analysis: Besides better operating efficiency, we believe a superior product mix (e.g. more focus on high-margin switches) also attributed to margin improvement.

• Primasia View: While we hold a conservative view (NT$1.4bn per month) on the company’s revenue outlook in 3Q01, we believe revenues will pick up again in 4Q01 on seasonal strength.

BennyLo@Primasia.com +886-[0]2-2547-8869