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Asustek lowers fourth-quarter guidance

Asustek Computer Inc (µØºÓ¹q¸£) yesterday revised downward its fourth-quarter sales estimates across all product lines amid a slowing global economy.

Asustek said motherboard sales may have fallen 20 percent quarter-on -quarter in the last three months of last year, compared with its previous guidance of a decline of 10 percent made on Oct. 30.

Shipments of notebook PCs could drop to between 1.5 million and 1.6 million units for the quarter, down from October¡¦s forecast of between 1.7 million and 1.9 million units, while sales of EeePC could reach between 1.4 million and 1.5 million units as opposed to its previous forecast of between 1.6 million and 1.8 million units.

REASONS

Asustek cited excess components and finished goods inventories for liquid-crystal-display monitors and notebooks, an inaccurate pricing strategy and unfavorable exchange rate fluctuations as reasons behind the revisions.

The company now predicts a gross margin of between 10 percent and 13 percent for branded products, an operating margin of between negative 5 percent and negative 8 percent and a net margin of between negative 2 percent and negative 5 percent.

¡§Although profits for the first nine months of 2008 reached NT$19.254 billion, full-year results could be lower than the company¡¦s expectations,¡¨ it said.
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