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Friday, October 31, 2003
AsusTEk and MediaTEK post 3Q financial growth

Asustek Computer, the world’s largest motherboard maker, and MediaTek, a major Taiwanese optical storage chip design house, generated have posted their third-quarter financial results.

MediaTek attributed the growth to technology migration trends and seasonal demand increase. In addition to strong sales of combo chipsets, driven by surging PC demand, MediaTek has experienced product migration from CD-RW chipsets to recordable DVD chipsets, as well as a global market share gain for highly-integrated DVD player chipsets, the company said.

Third-quarter operating profits were NT$4.634 billion, up 124.7% quarter-on-quarter and 83.0% year-on-year.

Although more competitors, such as Sunplus Technology and ALi, have entered the DVD player-use single-chip market, MediaTek expects to continue to lead the market with technology advantages, said MediaTek chairman Tsai Ming-kai.

Helped by its move to diversify products, Asustek saw its gross margin rise 2.6 percentage points on-year to 17.3% in the first three quarters. The company said motherboards contributed 30% of its revenues in the first three quarters, down from 55% in 2002. In comparison, the revenue ratio from notebooks went up to 25-30%.

The company said it shipped 19.6 million motherboards in the first three quarters and expects to ship 3.5 million units in October. The company shipped a record 3.02 million motherboards in September.

Asustek targets shipping 29 million motherboards and 1.9 million notebooks this year. If both targets are met, Asustek will keep its crown as the largest motherboard maker in the world and rank as the third-largest notebook contract manufacturer in Taiwan, behind Quanta Computer and Compal Electronics.

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