Thu, Oct 21, 2010 - Page 12 News List

Nanya Technology’s losses widen in Q3

By Lisa Wang  /  Staff Reporter

Nanya Technology Corp (南亞科技), the nation’s No. 2 computer memory chipmaker, reported wider quarterly losses yesterday as slack PC demand drove prices lower.

Third-quarter net losses ballooned to NT$2.27 billion (US$73.39 million), compared with losses of NT$1.09 billion in the second quarter, making it the third straight quarterly loss after a brief turnaround in the final quarter of last year.

However, compared with a year ago, the third-quarter losses were an improvement from losses of NT$3.9 billion.

The average selling price fell 15 percent last quarter from the second quarter, leading to a decline of its gross margin from 10 percent to 6 percent. The price is expected to drop further this quarter because of weaker-than-expected PC demand, company spokesman Pai Pei-lin (白培霖) said.

Dell Inc is Nanya Technology’s biggest client.

Nanya Technology trimmed its output growth forecast for this year to an annual expansion of 25 percent yesterday, from 35 percent estimated three months ago.

“The technological migration is more difficult than we expected,” Pai said.

Overall, the company was unlikely to return to the black this quarter and the whole year, judging by its fourth-quarter outlook, said an industry analyst, who declined to be named.

In the first three quarters, Nanya Technology lost NT$4.99 billion.

Inotera Memories Inc (華亞科技), a PC memory joint venture between Nanya Technology and US memory chipmaker Micron Technology Inc, yesterday also posted bigger quarterly losses.

Net losses increased to NT$2.62 billion in the June-September period last quarter, compared to losses of NT$1.81 billion in the second quarter, according to a company statement.

Gross margin worsened to minus 19 percent last quarter, from minus 7 percent in the second quarter.

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