10.08.2001
3Q01 revenue in shape, though below expectation

• MTI booked Sept. revenue of NT$398m, down 21% MoM, leaving 3Q01 revenue at NT$1.39bn. The result comes in below company’s guidance and our expectation of NT$1.5bn. However, we note that 3Q01 revenue still outperformed 2Q01 by 33%, which we believe is a good sign that demand is bottoming out. While we still hold a conservative view on the wireless sector looking out 6-9 months, we believe the current valuation of the stock (P/E 12.8x) is fairly attractive based on the company’s leading position in wireless outsourcing and its RF technology. Although the company depends heavily on share divestment to buoy results, we view it as a sound performer in a currently sluggish environment for telecom equipment.