Quanta Display eyes profits of NT$5 B. for 2004

Taipei, Dec. 30, 2003 (CENS)--Thank to the smooth running of its fifth generation thin film transistor-liquid crystal display (TFT-LCD) plant, Quanta Display Inc. projected to score profits of up to NT$5 billion (US$147.1 million at US$1 = NT$34) in 2004.

Compared to this year's estimated earnings of NT$423 million (US$12.44 million), the projected profits for next year will enjoy an amazing increase of NT$4.58 billion (US$134.62 million).

The company's fifth generation plant became operational in March of 2003, and its monthly output of TFT-LCD substrates now stands at 30,000 pieces, with non-defect rate of up to 80%-85%. Quanta Display disclosed that the substrates turned out by the fifth-generation plant focus on the size of 1,100 mm x 1,300 mm, mainly applied to 15-inch panels mostly used in notebook computers. Usually a 15-inch panel needs 16 pieces of such substrates. In November alone, Quanta Display shipped a total of 520,000 panels, and some 250,000 of which were rolled out by the fifth generation plant.

So far the company's 3.5th-generation production line has turned out mostly 14.1-inch panels for notebook computer use only, and the monthly output of such panels by the line is around 280,000 pieces. However, the market demand for 17-inch monitors is increasing, so some of the facilities of the line have recently been transferred to produce 17-inch panels. Since large panels need more substrates, therefore the company's 3.5th-generation production line currently generates only 240,000 panels per month.

With the evident contribution of the fifth-generation plant in the second half of this year, Quanta Display is estimated to score revenue of NT$27.1 billion (US$797.1 million) for the full year, thus turning the company's operations into profitability. If the plant is fully booked for 2004, then the company is likely to see a revenue of NT$55-60 billion (US$1.62-1.77 billion) for the year, with projected earnings of up to NT$5 billion (US$147.1 million).

Market observers analyzed that the prices of large TFT-LCD panels for television sets may fluctuate in 2004 due to uncertain market climate. And the prices of smaller panels for notebook computers are expected to remain stable. Today more than 40% of monitors with cathode ray tube (CRT) are replaced by TFT-LCD ones, and the percentage is believed to keep growing in the near future.

In this case, Taiwan's manufacturers of TFT-LCD panels, particularly for notebook computers, are quite optimistic about the market in 2004. Some have recently readjusted upward their financial prediction for the year.

Other than Quanta Display, Chunghwa Picture Tubes Ltd., another leading TFT-LCD panel maker on the island, has also adjusted upward its financial prediction for next year. It foresees revenue of NT$82 billion (US$2.4 billion) for the coming year, with projected profits of NT$8.2 billion (US$241.2 million) or net profit rate of 14%.

Prime View International Co., a dynamic maker of TFT-LCD panels in smaller sizes, is expected to gain profits this year, the first time in a decade. The company's revenue for 2003 is estimated at NT$7.7 billion (US$226.5 million), with a projected growth of 16.7% from 2002's NT$6.6 billion (US$194.1 million). And the company's profits for the year is around NT$560 million (US$16.47 million), up 16.7% over NT$480 million (US$14.1 million) predicted earlier.

The company's products are mainly smaller panels ranging in size from 1.8 inches to 7 inches. The 7-inch panels are usually turned out in large volume for broad use in lighting products for auto vehicles.

Revenue & Profits of Quanta Display (2001-2004) Unit : NT$100 M.
Year	Revenue	After-tax Profits
2001	5.19	-14.01
2002	157.45	-1.73
2003	271.01	4.23
2004	550-600 (estimated)	About 50 (estimated)