ABIT under investigation for financial irregularities

[Tates]

Abit under investigation
by Derek Sooman on Thu 16 Dec 2004, 11:36 AM, techspot.com

There's some suspicion that all is not what it seems in terms of Abit and its financial performance. Stock of the company will be downgraded on the Taiwan Stock Exchange (TSE) to requiring full delivery. The reason? Questions are being asked with regard to its financial reports over the past three years, which might be bogus in some way.

Some doubts cast over the legitimacy of Abit financial affairs are as follows:

-Over 70% of Abit?s total import and export business in the first half of this year were conducted through seven Hong Kong-based companies, all of which were located at the same address, with a registered capital of just HK$2 each.

-The TSE also suspects that management at Abit might have embezzled company funds through the issuance of a euro convertible bond (ECB).

-A total NT$4.1 billion-worth of Abit?s import and export transactions in the January-June period was conducted without shipping documents.

Abit have so far declined to comment on the news, however they said that they would be preparing a statement on these issues later this week.

Suppliers worried about Abit?s financial situation
Emma Wang, Taipei; Steve Shen, DigiTimes.com, Tuesday 21 December 2004

Suppliers of core-logic chipsets and printed circuit boards (PCBs) to Abit Computer are worried about their accounts receivable at the motherboard maker, after the company chairman, Remond Lu, said that Abit?s correspondent banks may freeze its assets, market sources said.

The banks took action after the Taiwan Stock Exchange (TSE) demanded Abit provide more details of its financial situation and overseas business transactions, while downgrading it stock to requiring full delivery, said the sources.

Meanwhile, Abit?s sales agents in overseas markets are also concerned about the supply of motherboards from Abit and have started seeking new partnerships with other suppliers, the sources noted.

In an effort to solicit those distributors planning to move away from Abit?s products, some Taiwan motherboard makers have stepped up their marketing efforts in regions such as China, France and northern Europe, where Abit?s motherboard shipments have been the strongest, the sources added.

Sources at a first-tier Taiwan motherboard maker stated that the impact of Abit's financial problems on its distribution channels in China may not begin to materialize for another one to two months because Abit?s subsidiary in China may still have enough capital to finance its operations for a while.

However, Abit?s financial situation may continue to deteriorate, which could weigh on other second-tier motherboard makers who are also financially weak, said the market sources.

Abit was unavailable for comment.

 

[Pocatello]

Abit is going down.

 

[tobeythorn]

that is too bad, i liked abit

 

[ChineseDemocracyGNR]

Originally posted by: tobeythorn
that is too bad, i liked abit

They're not gone yet.

 

[jiffylube1024]

Dammit, how can this be!? Abit were starting to become one of the top companies; the NF7-S and IC7 series were top in their class for Socket 462 and 478, respectively. They haven't been quite as sucessful this generation, but damn Abit, get your sh!t together!

 

[boatillo]

See, its not only American companies that try this Maybe its just that American companies aren't as good at covering it up?

I sure its nothing a few million Fatal1ty mobo sales wouldn't fix

 

[jiffylube1024]

Originally posted by: boatillo
See, its not only American companies that try this Maybe its just that American companies aren't as good at covering it up?

I sure its nothing a few million Fatal1ty mobo sales wouldn't fix

The Fatal1ty is worthless - a Socket 775 enthusiast board is not what overclockers are asking for.

Abit has dropped the ball by not offering Nforce 3 boards at all; they better get their @sses in gear with NF4.

 

[joelslaw]

Originally posted by: tobeythorn
that is too bad, i liked abit

LMAO! Tates is ready to close the coffin and nail it shut. Get busy livin' or get busy dien', right tates? :laugh:

 

[Tates]

Originally posted by: joelslaw

Originally posted by: tobeythorn
that is too bad, i liked abit

LMAO! Tates is ready to close the coffin and nail it shut. Get busy livin' or get busy dien', right tates? :laugh:

You own an Asus board, so I guess this info means squat to you.

 

[joelslaw]

I'm not an exclusive Asus buyer, and even if I was, it's always sucks when a company who makes good products goes under. I wasn't trying to sound like a jerk, the comment you made just sounded funny to me.

 

[Tates]

Originally posted by: joelslaw
I'm not an exclusive Asus buyer, and even if I was, it's always sucks when a company who makes good products goes under. I wasn't trying to sound like a jerk, the comment you made just sounded funny to me.

What comment? All I did was quote and link.

Anyway......

 

[joelslaw]

oh wow, i'm an idiot. I was quoteing tobeythorn not you (the "i liked abit" comment), sorry ..... man do I feel stupid.