Contents - MiTAC

2. Analysis of Business Results
Year
Item 2002 2003
- 90 -
Units:Thousands of NT Dollars
Amount of
Increase
(Decrease)
Percentage
Change
%
Operating Revenue 25,598,978 40,321,138 14,722,160 57.51
Less: Sales Return and Allowance (421,416) (745,184) (323,768) 76.83
Net Operating Revenue 25,177,562 39,575,954 14,398,392 57.19
Operating Costs (23,121,839) (36,596,609) (13,474,770) 58.28
Gross Profit 2,055,723 2,979,345 923,622 44.93
Operating Expenses (1,777,255) (2,424,045) (646,790) 36.39
Operating Income 278,468 555,300 276,832 99.41
Non-Operating Income and Gains 1,166,688 1,006,878 (159,810) -13.70
Non-Operating Expenses and Losses (567,572) (491,528) 76,044 -13.40
Net Income Before Tax 877,584 1,070,650 193,066 22.00
Income Tax (12,680) (19,177) (6,497) 51.24
Net Income 864,904 1,051,473 186,569 21.57
2.1 Analysis of proportional increases or decreases
2.1.1 Operating income: During this period, increases in demand for IT products and
aggressive development of new products, as well as growth in the volume of orders
compared to 2002, led to an increase in sales income.
2.1.2 Returned goods and depreciation: In line with increases in operating revenues,
adjustments for returned goods and depreciation correspondingly increased.
2.1.3 Cost of sales: In line with increased revenues compared to the previous period, cost of
sales in the current period increased.
2.1.4 Gross profits: Substantial growth in the value of sales compared to 2002 resulted in
increases in gross profits.
2.1.5 Operating expenses: In line with increases in sales volume, associated expenses such
as for after-sales service increased correspondingly.
2.1.6 Operating profits: A rise in gross profits led to increases in operating profits for this
period.
2.1.7 Tax expenses: Due to increases in pre-tax net profits, tax expenses for the current
period increased.
2.2 Reasons for changes in the Company's main businesses: The Company did not alter its main
lines of business.
2.3 Projected sales volume for the next calendar year and their basis; Main factors influencing
whether sales continue to expand or experience a decline:
Based on the executive team's plans for 2004 and assessments of future business
conditions, the Company has set a sales target of 10 million or more motherboards, and
expects substantial growth in sales of servers, mobile phones, and wireless communications
products.