Feeds

VIA cuts 40% off profit prediction

PC market recovery not happening quickly enough

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

VIA's profit this year will total less than two-thirds of what it had previously forecast, the chipset company admitted today.

Blaming the no-show of the recovery in the PC market that it had anticipated, VIA said it will earn some NT$5 billion ($145 million) this year - down 40 per cent on the NT$8.4 billion it forecast earlier this year that it would make. Earnings per share will fall from NT$8.80 to NT$5.30, the company said.

And VIA doesn't expect the market to improve any time soon. In an interview with Bloomberg, VIA's director of finance and accounting, Miller Chen, said: "The PC environment is not so good. It's not as strong as we predicted in the second quarter."

The bottom line is that VIA is selling fewer chipsets than it had anticipated it would. The events of 11 September and the broader economic climate may well have had an impact on demand for the company's products, but we'd also add Intel's legal action to the list.

Intel is suing VIA over the chipset maker's Pentium 4-oriented P4X266 part. Intel claims VIA has no right to use P4 bus technology in the chipset and has launched intellectual property violation lawsuits against it.

VIA has countersued, claiming Intel's behaviour is anti-competitive and citing alleged violations of its own patents.

Whatever the merits of its case, Intel's lawsuit has at least persuaded major motherboard manufacturers to steer clear of VIA's chipset. Instead, many are turning to SIS, which does have a P4 bus licence. SIS sources say it will ship 500,000 645 chipsets between mid-November at the end of the year, ensuring it will beat its previous target of 900,000 for the quarter by 50 per cent.

In response, VIA launched its own-brand motherboard line based on its own chipset. Last month, the company said these mobos would add NT$550 million to its November sales. Given Chen's comments today that seems unlikely to happen. And indeed, sources cited by DigiTimes suggest that it won't as VIA targets third-parties first and its own mobo division second. ®

Secure remote control for conventional and virtual desktops

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Reducing the cost and complexity of web vulnerability management
How using vulnerability assessments to identify exploitable weaknesses and take corrective action can reduce the risk of hackers finding your site and attacking it.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.