VIA Technologies estimated to lose NT$2.5 billion in 2004

Taipei, Jan. 27, 2005 (CENS)--Chipset vendor VIA Technologies is estimated to lose at least NT$2.5 billion (US$78 million at US$1:NT$32) throughout last year, the company's largest-ever loss in its history.

Taiwanese industry watchers pointed out that the losses were mainly caused by poor performances of its affiliates. They pointed out that losses would account for a quarter of its capitalization.

VIA's financial executives pointed out that their company would do one-time charge related to asset loss in the fourth quarter last year according to the government's new corporate-accounting regulation and they were not able to comment on the reported loss figure. However, they stressed the one-time charge would not affect their company's cash flow. They said the company would release 2004 result in April this year.

Industry watchers pointed out that VIA, like other local publicly held high-tech enterprises, was obligated to list asset losses including those from affiliates on its financial sheets.

The company's graphics-chip affiliate S3 Graphic is estimated to post a loss in operation last year. In its third-quarter balance sheet, S3 still had a net asset value of around NT$1.5 billion to NT$1.6 billion (US$46.8 million to US$50 million). Its loss is estimated to offset its net asset value, industry watchers pointed out.

Some insiders pointed out that VIA would not have to book S3's loss on its balance sheet for this fiscal year once it did one-time list last quarter, likely turning it into a profitability this year.

Industry insiders pointed out that VIA lost over NT$1.6 billion throughout the first three quarters last year and its revenue for the fourth quarter of 2004 was worse than its third quarter number.