Taiwanese based core-logic developer Silicon Integrated Systems Corporation (SiS) reported their financial results for the third quarter this year and October revenue report.

SiS’ total operating revenue for the third quarter were $117 million, an increase of 27% over the second quarter and a significant improvement of 73% over the same period of last year. In total, SiS earned about $312.8 million for the first three quarters this year, a 49% gain compared to that of the same period of last year.

The total chipset products shipped by SiS during the third increased to over 6 500 000 sets, indicating SiS’ successful expansion of its share of the chipset market. However, the current difficult conditions in the pricing environment led to a decrease in average selling price and an erosion of profits which was aggravated by the dispositioning of certain inventory of older products. As a result, there was a net loss of approximately $23.2 million for the third quarter.

The revenue figures for October, however, continues to set record, as the internal preliminary projection for the month stands at $52 million, an increase of 8% from September 2002 and an increase of 79% from the same period of last year. Revenue for the full year is preliminarily projected to reach nearly $364.7 million, an increase of 53% over last year.

Under a strategy of actively growing market share, SiS’ short-term profitability has been affected, but the company has built a more competitive position in the marketplace, as explained by S. Samuel Liu, Chairman, President & CEO of SiS. Its new generation of advanced chipsets has received positive response in the market, causing demand to exceed supply. The company is aggressively ramping production to meet this demand. SiS has seen a notable growth in the Pentium 4 chipset shipment, accounting for over 50% of its total chipset shipment.

SiS plans to return to profitability in the fourth quarter this year. On the one hand, they have a lot of chances to do so since now they do not have a lot of old products in stock and they continue to improve the yield of the chips. This quarter SiS plans to launch high-performance SiS655 and R658 chipsets for the Pentium 4 platform as well as to continue pushing their SiS650-series on the Chinese market. On the other hand, Intel has greatly expanded its portfolio of core-logic devices and will compete with SiS on every market segments from low-end personal computers to performance workstations.

Now make your bets, guys.