VIA set for gloomy Q3 – analysts
Income to fall 63%, apparently
VIA will announce its third-quarter results on Wednesday and if the five analysts Bloomberg quizzed are correct, it will post a significant slump in profitability.
The reason: thanks to Intel's legal action against the company, no one its buying VIA's Pentium 4 chipsets, the analysts claim. Oh, and the PC market's a bit tough at the moment.
VIA itself has already said quarterly sales will be down, from Q3 2000's NT$10.2 billion ($295.46 million) to NT$7.9 billion, a fall of just under 23 per cent. The upshot, Bloomberg's brains-trust has suggested, is a dip in quarterly income of just under 63 per cent. For the three months to 30 September, VIA is expected to have made earned NT$934 million. This time last year it made NT$2.5 billion.
Here's what two of the analysts are saying about VIA, according to the Bloomberg report:
- "We're not that optimistic about VIA... I doubt they'll have an overwhelming competitive edge" - Michael Ding, International Investment Trust Ltd. Ding apparently sold his stake in VIA earlier this year.
- "Customers have been scared away by the legal issues with Intel. The PC market is also not as good as was expected.'' - John Leong, Deutsche Bank AG.