07.20.2001
Delta confirms order from Dell

• Development: Delta confirmed it has secured orders for its switches from Dell of US$7m for shipment this year, with 2002 order prospects of US$100m.

• Analysis: The order lays a solid stepping stone for Delta in its attempt to obtain Dell WLAN product orders. Dell currently has 2% of the global WLAN market.

• Primasia View: The company is trading at a PER of 13x, significantly undervalued compared to over 20x for leading domestic PC component maker Hon Hai (2317.TT). On this counter we maintain our current rating.

VincentChen@Primasia.com +886-[0]2-2547-8868