Via Technologies Profit Falls Less-Than-Expected 21% (Update2)01/30 01:45
By Brett Cole
quote.bloomberg.com
Taipei, Jan. 30 (Bloomberg) -- Via Technologies Inc.'s fourth- quarter profit fell a less-than-expected 21 percent as the second- biggest chipset seller contended with slumping computer demand and cut prices.
Profit fell to NT$1.1 billion ($31 million), or NT$1.15 per share, from NT$1.4 billion, or NT$1.50 per share, in the year- earlier period. Profit beat a NT$905 million forecast according to the average estimate of four analysts surveyed by Bloomberg.
``The pricing environment last year was very aggressive as all chipset sellers cut prices,'' said Richard Brown, Via Technologies' director of marketing.
Sales were unchanged at about NT$8.1 billion. The company said its gross margins fell to 39 percent in the fourth quarter from 43 percent in the year-earlier period. Via makes chipsets, which manage the flow of information between a processor and other parts of a personal computer.
Via's sales have fallen after the PC industry last year had its first decline in unit shipments since 1985. Via is also involved in lawsuits with Intel Corp., the biggest chipset and semiconductor maker, and has cut prices to try and retain its customers, analysts said.
Intel sued Via in September, alleging Via infringed upon its patent for Pentium 4 microprocessor technology. Three days later, Via sued Intel, alleging the biggest chipmaker had violated patents relating to Via's central processing unit technology.
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