IA Announces 4Q’04 and 1Q’05 Results

Taipei, Taiwan, 29 April 2005 – VIA Technologies, Inc, a leading innovator and developer of silicon chip technologies and PC platform solutions, today announced financial results for fourth quarter 2004 and first quarter 2005.

Net sales for 4Q’04 and 1Q’05 were NT$ 4,964 million and NT$ 3,899 million respectively, while net income was negative NT$ 3,308 million in 4Q’04 rising to NT$ 63 million in 1Q’05. Based on the quarter weighted average shares outstanding of 1,296.95 million and 1,278.22 million, earnings per share were reported as negative NT$2.55 for 4Q’04 and NT$0.05 for 1Q’05.

For the whole year 2004, net sales totaled NT$ 19,449 million and net income for the year was negative NT$ 4,981 million; based on 1,296.95 million weighted average shares outstanding, earnings per share for the year was reported at negative NT$3.84.

The decision by the VIA Board of Directors on the early implementation of SFAS No.35 in 4Q’04 required that NT$1,210 million of the asset impairment deficit was posted as equity-based long-term investment loss; this was in addition to the NT$461 million posted as permanent devaluation of cost-based long-term investment.

Table 1: Quarterly Income Statements

    4Q04   4Q03
(in NTD millions, except EPS)   Amount %   Amount %
Net Revenue   4,964 100.0%   5,045 100.0%
Cost of Goods Sold   (3,782) -76.2%   (3,677) -72.9%
   Gross Profit   1,182 23.8%   1,368 27.1%
Operating Expenses   (1,152) -23.2%   (1,286) -25.5%
   Operating Profit   30 0.6%   82 1.6%
Non-Operating Income   88 1.8%   456 9.0%
Non-Operating Expenses   (3,288) -66.2%   (475) -9.4%
   Income Before Tax   (3,170) -63.8%   63 1.2%
Income Tax Credit (Expense)   (138) -2.8%   1 0.0%
Net Income   (3,308) -66.6%   64 1.2%
EPS (1,296.95M shares)   -$2.55     $0.05  
    1Q05   1Q04
(in NTD millions, except EPS)   Amount %   Amount %
Net Revenue   3,899 100.0%   4,409 100.0%
Cost of Goods Sold   (3,062) -78.5%   (3,001) -68.1%
   Gross Profit   837 21.5%   1,408 31.9%
Operating Expenses   (1,075) -27.6%   (1,193) -27.0%
   Operating Profit   (238) -6.1%   215 4.9%
Non-Operating Income   768 19.7%   265 6.0%
Non-Operating Expenses   (467) -12.0%   (431) -9.8%
   Income Before Tax   63 1.6%   49 1.1%
Income Tax Credit (Expense)   0 0.0%   2 0.0%
Net Income   63 1.6%   51 1.2%
EPS (1,278.22M shares)   $0.05     $0.04  

Table 2: Annual Income Statements

    2004 Full Year   2003 Full Year
(in NTD millions, except EPS)   Amount %   Amount %
Net Revenue   19,449 100.0%   20,256 100.0%
Cost of Goods Sold   (14,061) -72.3%   (14,813) -73.1%
   Gross Profit   5,388 27.7%   5,443 26.9%
Operating Expenses   (4,820) -24.8%   (5,198) -25.7%
   Operating Profit   568 2.9%   245 1.2%
Non-Operating Income   880 4.5%   823 4.1%
Non-Operating Expenses   (6,351) -32.7%   (2,749) -13.6%
   Income Before Tax   (4,903) -25.2%   (1,681) -8.3%
Income Tax Credit (Expense)   (78) -0.4%   31 0.2%
Net Income   (4,981) -25.6%   (1,650) -8.1%
EPS (1,296.95M shares)   ($3.84)     ($1.26)  

Table 3: Balance Sheets

(in NTD millions)   Dec. 31, 2004   Mar. 31, 2005
    Amount %   Amount %
Cash & ST Investment   6,845 28.0%   6,293 28.0%
Receivables   2,334 9.5%   2,082 9.3%
Inventory   4,145 16.9%   3,567 15.9%
Other Current Assets   627 2.6%   634 2.7%
   Total Current Assets   13,951 57.0%   12,576 55.9%
LT Investment   6,857 28.0%   6,420 28.5%
Fixed & Other Assets   3,680 15.0%   3,502 15.6%
   Total Assets   24,488 100.0%   22,498 100.0%
Current Liabilities   6,529 26.7%   4,659 20.7%
LT Debt   2,294 9.4%   2,238 9.9%
Other Liabilities   256 1.0%   276 1.3%
   Total Liabilities   9,079 37.1%   7,173 31.9%
   Total Shareholders’ Equity   15,409 62.9%   15,325 68.1%

Note to reporters, editors and writers: VIA is written in ALL CAPS.

All product or service names mentioned herein are the trademarks of their respective owners.

VIA Technologies, Inc.