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VIA's Q2 profits to fall 30%, analysts predict

Sales-growing price cuts take their toll

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VIA is looking at a 30 per cent drop in earnings, Taiwanese analysts have forecast. The chipset maker is due to report its Q2 figures tomorrow.

Five analysts quizzed by Bloomberg put VIA's second quarter profit at around NT$1.2 billion ($35 million), down nearly a third on the NT$1.7 billion it posted for the same period last year.

VIA has already said sales for the three months to 30 June - the company's second quarter - were up four per cent to NT$7.3 billion from the year-ago quarter's NT$7.0 billion. The rise in sales comes at a cost, however: VIA cut prices to stimulate demand, a move that's certain to hit its profitability. ®

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