VIA up, Creative down
Swings and roundabouts time
Chip designer VIA Technologies had net sales for November 2000 of US$89 million, up almost 32 per cent on the same period in 1999. Sales from January to November 2000 of $938 million were 193 per cent up over the same period last year.
But Creative Technology shares fell 4.3 per cent following analyst downgrades.
The sound card behemoth was hit on concerns over weak Christmas sales after computer makers cut revenue forecasts.
Creative has cancelled orders to component makers, according to HSBC Securities in Singapore. HSBC's Victor Lim cut his recommendation to 'reduce' from 'hold'.
"Creative has made component order cancellations across the board," said Lye. "The slowdown in PC demand has been a major negative."
Creative's forecasts of Q4 sales of between $440 million and $460 million, five per cent up on the previous year, are no longer achievable, added Lye. ®