MediaTek's Cai Issues Brighter Revenue Outlook

Taipei, June 29, 2009 (CENS)--Chairman M.J. Cai of MediaTek Inc., currently Taiwan's No.1 fabless house, recently said he expects the company's revenue for the fourth quarter to rise from the third quarter this year although past records show the company's fourth quarter revenue usually declines after the third quarter peak season.

Cai said although his company's business prospects remain hazy in the third quarter, he expects the company's revenue to rise quarter after quarter in light of improved consumer confidence and slowdown of economic meltdown in the United States, Europe and Japan. He noted that the company's shipments this month and next s are not strong thanks to cyclical adjustments after the May 1 Labor Day holidays in mainland China.

The company's shipments of TV chips to Europe and the United States have been robust recently as a result of TV signal migration to digital format from analog format in Europe and the United States.

By product breakdown, WiMAX chips are expected to become the company's another revenue grower although its shipments of the chips remain insignificant now. The company will begin to deliver 3G chips in the second half this year as scheduled. Cai said he is not worried about increasing copycats in mainland China of his company's practice of supplying mobile-phone makers with total solution combing chips with software because copying does not necessarily ensure success.

Cai felt mainland China's market for mobile phone chips would grow bigger in the future than now on the introductions of Apple iPhones and similar smart phones from other suppliers, which foretell the trend that telecommunications, multimedia and consumer electronics will converge soon.

MediaTek scored combined revenue of NT$9.3 billion (US$283 million at US$1:NT$33) in May alone, losing 4.39% from a month earlier but outperforming market expectations. Industry watchers estimate the company's revenue for June to slip moderately.

The company's president, C.J. Hsieh, pointed out that although the economic downturn has more or less taken toll on the company's sales this year, its ongoing restructuring and recent entries into some new segments would generate results soon once global economy starts to rebound.