08.30.2001
Macronix business outlook improves for 2H01

• Development: Macronix disclosed that it would maintain a 70% utilization level until year-end. 2H01 revenue is expected to attain NT$12bn with a gross margin of 40%. Firm indicated that Aug and Sept revenues will be flat from July with 4Q experiencing a 30% sequential revenue up-tick.

• Analysis: Shipments for the remainder of the year should become secure, whereas 1H02 remains subject to lack of visibility. Through current utilization planning, firm will continue to see inventory levels rise to NT$9bn, from NT$4bn in 2000 and NT$7.4bn at end 2Q01.

• Primasia View: Macronix’s rating is currently under review and we remain concerned about impact of inventory correction should 2002 prospects fall short of expectations.