Wed, Oct 03, 2012 - Page 13 News List

Powerchip posts small monthly revenue

By Lisa Wang  /  Staff reporter

Local memorychip maker Powerchip Technology Corp (力晶科技) yesterday posted its smallest monthly revenue in five months for last month, blaming stagnating demand for personal computers for putting chip prices in a deep downward spiral.

Revenue dropped 6.5 percent to NT$2.46 billion (US$84 million) last month, the lowest level since April’s NT$2.27 billion, compared with NT$2.63 billion in August, the company said in a statement.

However, that was a 8.85 percent increase from September last year.

Powerchip spokesman Eric Tang (譚仲民) attributed a slowing demand for PCs to the lower prices for DRAM chips and a decline in the company’s monthly revenue, according to the statement.

However, the company’s foundry business, or chip contracting business, looked resilient.

“Customers are still actively requesting capacities to satisfy demand for smartphones and other mobile devices,” Tang said.

As the foundry business was making stable profits and creating a steady cash flow, the new business would help Powerchip alleviate its financial burden next quarter, Tang said.

Powerchip shares plummeted 6.33 percent to NT$0.74 yesterday as the stock was on the brink of being scrapped from trading on the over-the-counter securities market, given its ever-shrinking net value to NT$0.28 per share as of June 30.

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