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Monday, September 09, 2002
Mediatek posts strong sales for August

Mediatek saw a 20% sales gain in August from July, due to higher demand for its single chips used in DVD players. Analysts, noting renewed strength among its optical-drive-making clients, said the company will register sequential growth in the range of 10-15% this month, to result in NT$2.3 billion to NT$2.5 billion in sales. Despite warnings from Intel that put in question a fall rebound in PCs, analysts’ bullish projections indicate tech players with strong fundamentals, like Mediatek, still have what it takes to get through the lean times.

For August, Mediatek said its sales totaled NT$2.096 billion, up from NT$1.737 billion in the prior month. For the eight months through August, sales were NT$17.579 billion, or 68% of its full-year sales estimates.

The figures were not audited.

Analysts said the company has benefited mainly from surprisingly strong consumer demand for DVD players, for which Mediatek started shipping single chips in June. Its low-price chips have helped it grab market share, particularly in China.

Another major boost will come from Mediatek’s CD-RW/DVD-ROM combination drive chipsets, as shipments will start in the fourth quarter, according to analysts. Mediatek stands to gain from the increasing popularity of the combo device into 2003, when worldwide shipments are forecast by some estimates to grow 50% to 30 million units.

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