10.16.2001
Ambit keeps the ball rolling into 4Q

• Ambit informs us that gross profit margin for 3Q is likely to be around 14% (bettering market expectations). Firm clarified that new orders slated for 4Q delivery would come from unnamed U.S. clients, but not from both U.S. and European clients as originally anticipated. Ambit expects 4Q revenue to remain high, primarily due to strong shipments in ADSL modems, which are expected to reach between 1-1.5m lines in 4Q01. Yahoo Japan is expected to contribute a large portion in 4Q as subscriber numbers have broken the 1 million mark, sparking demand for Ambit’s ADSL modems. Overall, we expect Ambit to post over NT$5bn in revenue for 4Q. However, gross profit margin is expected to drop marginally as no further expansion plans are in store for China operations for the time being.