Sat, Apr 07, 2012 - Page 12 News List

Macronix misses revenue expectations

By Lisa Wang  /  Staff reporter

Macronix International Co (旺宏電子), which supplies memory chips to Japanese video game console maker Nintendo Co, yesterday reported disappointing first-quarter revenues of NT$5.08 billion (US$172 million) on weaker-than-expected customer demand.

The figure raised the possibility that the chipmaker would show a first-quarter loss since revenues were below the NT$6 billion company president Lu Chih-yuan (盧志遠) had estimated as the break-even point based on previous financial records.

The last time Macronix reported a loss was in the first quarter of 2006.

First-quarter revenues were also outside the lower limit of the chipmaker’s forecast revenue range of NT$5.2 billion to NT$6 billion. The figure represented about a 40 percent quarterly decline from the fourth quarter’s NT$8.4 billion.

“The fall in demand from Japanese customers was greater than expected as the end of the Japanese fiscal year approached, and ASP [average selling price] erosion of some products was worse than expected,” Macronix said in an e-mailed press release.

In February, Lu said the price of NOR flash memory chips would fall a further 10 percent in the first quarter, after a 40 percent price drop last year on weak demand and stiff pricing competition.

Macronix’s share price rallied 2.86 percent to NT$10.8 yesterday, ending five straight losing sessions.

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