Silicon Integrated Systems Corp (SiS, 矽統科技) said it expects to turn to a profit as sales at Taiwan's second-largest chipset maker rise after Intel Corp filed a lawsuit against rival VIA Technologies Inc(威盛電子).
SiS should post a profit for the year after making a loss in the first three quarters, chief executive S. Samuel Liu said in an interview. Losses in this quarter will not narrow from the second, he said.
"A profit this year is quite possible, especially after Intel filed a suit against VIA," said Mike Shiao, who manages NT$1.2 billion (US$34.7 million) in stocks at Taiwan International Investment Management Co. "Motherboard makers will hold back from using VIA's chipset and buy from Silicon Integrated if it can ship on time."
SiS is attracting customers after Intel sued rival VIA Technologies, on charges the second-biggest computer chipset seller infringed its patents by unlicensed selling of chipsets that can be used with Intel's Pentium 4 processor.
SiS has a license to make chipsets that work with the Pentium 4.
Chipsets enable a processor to work with other parts of a computer. Motherboards connect chips and other components in a PC. Last month, SiS introduced chipsets that work with the Pentium 4 processor.
"We look forward to a relatively strong fourth quarter," said Liu. "We haven't seen any major impact from the attack in the US."
Terrorist attacks in the US on Sept. 11 may dampen consumer spending, tipping the biggest economy into recession and cutting computer demand during the Christmas season, analysts said.
Computer sales will fall for the first time since 1985, research firm International Data Corp said before the attack.
SiS' loss in the three months ending June 30 was NT$110 million, compared with NT$291 million in the year-ago period. Sales rose 37 percent to NT$2.5 billion.
The company has posted a loss every quarter since March of last year, when it built a chip plant to make its own chipsets.
Separately, the company plans to set up a sales office in Beijing this year, Liu said.
Elitegroup Computer Systems Co (
"Silicon Integrated may want to serve Elitegroup better," said Shiao.
Shares in SiS rose NT$1.4, or 6.8 percent, to NT$22.10. The shares have fallen 73 percent in the past year, compared with a 47 percent fall on the TAIEX.
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