Taipei, Sept. 24, 2012 (CENS)--Nanya Technology Corp. and Inotera Memories Inc., both of which are DRAM makers under the Formosa Plastics Group (FPG), failed to realize seasonal surge in August, and instead saw their revenues for the month sink further from July in spite of the back-to-school shopping season.
Nanya had revenue of NT$2.11 billion (US$70.3 million at US$1: NT$30) in August, slipping 18.2% from July and 12.2% year on year. Inotera scored revenue of NT$2.85 billion (US$95.3 million) in August, contracting 5.8% from July and 7.3% from the same month last year.
Both companies ascribed the revenue recessions mostly to delayed shipments of Windows8 PCs and continuous market gain by tablet PCs in the third quarter, not to mention persistently reduced DRAM chip units in PCs. All these factors have dealt a heavy blow to the DRAM chip market.
In the Jan.-Aug. period of this year, Nanya raked in total revenue of NT$23.5 billion (US$786.3 million), slumping 12.5% from the same period of last year. In the meantime, Inotera had revenue of NT$23.3 billion (US$779.5 million), off 9.38% year on year.
Although Elpida Memory Inc. and Rexchip Electronics Corp. reportedly reduced output to shore up DRAM prices, the delay in PC and laptop shipments had undermined their efforts. Also, high inventory backlogs at DRAM retailers contributed to the over 8% drop in DRAM contract price for August.
According to online marketplace DRAMeXchange, average selling price of DDR3 2Gb DRAM has dropped by around 20% to US$0.8 apiece in the third quarter from Julyas US$1 or so.
To reduce loss, Nanya has decided to scale down output of standard DRAM chips while boosting output of niche DRAM chips.
August Revenue Results of Nanya and Inotera
Stock code
Company
August revenue
MoM change (%)
Jan.-Aug. revenue/YoY change
1st Half EPS
2408
Nanya
NT$2.1B.
-18.2
NT$23.5B./-12.5%
-NT$1.15
3474
Inotera
NT$2.8B.
-5.8
NT$23.3B./-9.38%
-NT$1.45
Sources: the companies
(by Ken Liu)
