Thu, Mar 08, 2018 - Page 12 News List

Adata proposes a cash dividend

By Lisa Wang  /  Staff reporter

Memory module supplier Adata Technology Co (威剛科技) yesterday said its management team has suggested distributing a cash dividend of NT$6 per common share, which would be its largest in three years, as part of its policy to increase cash return.

That would represent a dividend yield of about 8.38 percent, compared with the company’s stock price of NT$71.6 on the Taiwan Stock Exchange.

The company paid out NT$7 per common share in 2014.

Last year, Adata distributed a cash dividend of NT$4 a share.

The company has not released earnings for last year as a whole, but in the first three quarters last year, it made a net profit of NT$2.16 billion (US$73.84 million), or earnings per share of NT$8.49.

The company got off to a weak start this year, with revenue in the first two months dropping 9.74 percent to NT$4.7 billion from NT$5.21 billion during the same period last year, according to its stock exchange filing.

Revenue for last month alone sank 21.98 percent month-on-month and 23.71 percent year-on-year to NT$2.06 billion due to Lunar New Year holiday disruptions.

Adata expects revenue to rebound this month, as working days and customer demand return to normal.

The company said it is optimistic that demand for its DRAM products would remain stable this quarter.

However, NAND flash memory would be under greater price pressure because of seasonal factors, it added.

More than half of its revenue came from DRAM products, the company said.

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