X-Bit Labs bericht dat de financiële resultaten van VIA van het tweede kwartaal dit jaar ronduit teleurstellend zijn. De omzet daalde met 30 procent naar 428 miljoen dollar en de winst per aandeel zakte zelfs met 95 procent ten opzichte van vorig jaar. Als reactie op deze resultaten heeft Ted Lee, vice president world-wide sales en marketing, besloten zijn huidige positie gedag te zeggen. De slechte resultaten zijn mede veroorzaakt door het ontbreken van een licentie voor de Pentium 4 bus en de agressieve prijzen die SiS en Intel dit jaar hanteren:
This year has been quite tough for VIA so far. As the company still has not secured their license on Pentium 4 system bus, a lot of their partners decided not to use appropriate core-logic products from this chipset-developer due to the pressure from Intel. At this point VIA had to offer extremely attractive prices to their remaining partners and such strategy causes their gross-margins to slide down further. Moreover, this year Intel and SiS have become very aggressive, providing more and more advanced products sometimes even cheaper than VIA. Due to broad product families from these two companies, their market share has risen gradually, meanwhile VIA`s market presence continues to decrease both among Socket 478 and Socket A platforms.
Meanwhile, VIA`s CEO, Wen Chi Chen, told during the recent conference-call that the company is still confident in their strategy and is not going to license Pentium 4 system bus. He added that his company did not need Pentium 4 license, but if Intel wanted, the latter could try to convince VIA to secure it. The Taipei-based core-logic developer now hopes to enhance its profitability with its diversification strategy.
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