10.31.2001
Company Visit - Ambit continues to shine

• Higher gross margin in 3Q (15.2% vs 13.1% in 2Q) enabled Ambit to report impressive 3Q results as net earnings rose 51% QoQ to NT$572m (EPS NT$2.44). Company sees strong demand for ADSL modems boosting 4Q revenue to NT$6.2bn, a rise of 12% QoQ and 113% YoY, leading to full-year revenue of NT$19bn (up 60% YoY). We have revised upward our full-year EPS forecast to NT$7.74. Going forward, Ambit expects 1Q02 revenue to stay around NT$5bn, with expectation that ADSL modems will continue to be main growth driver in 2002. Given company’s growth momentum near term, and possible 2002 ADSL orders from Microsoft, Siemens, Alcatel and Chunghwa Telecom (2412 TT), we believe our target price of NT$161 is well within reach looking out 6 months.