Abit cuts debt but remains mired in uncertainty
DigiTimes has news on Abit's plans to sell its office in Taipei for NT$1.7 billion. The cash will be used to retire part of the company's loans and reduce overall debt, but there seem to be serious questions regarding Abit's long-term health.
Even a quick glance at the financial information provided by DigiTimes demonstrates the problem. Abit's sales have dropped 96% year-on-year. As of October 31, Abit's net worth had fallen to NT$1.7 billion, down from NT$10.8 billion in November of 2004. Taiwan's security regulatory agency has requested Abit re-file all financial statements from 2003, 2004, and part of 2005; Abit is threatened with delisting from the Taiwan Stock Exchange if it fails to comply.
What began as an investigation into accounting problems that Abit assured us would blow over "in two weeks" has stretched into a year-long saga with no end in sight. Abit sales have sunk like a rock, and the company has announced it plans to sell its production facilities and will outsource future manufacturing.