Fri, Aug 09, 2019 - Page 12 News List

Adata reports drop in profit of 27.63% on DRAM prices

By Lisa Wang  /  Staff reporter

Adata Technology Co (威剛科技), the world’s second-largest memory module supplier, on Tuesday reported a 27.63 percent quarterly decline in net profit for last quarter as DRAM chip prices fell more than expected.

Net profit sank to NT$110 million (US$3.51 million) from NT$152 million in the first quarter, or earnings per share (EPS) of NT$0.53, down from NT$0.72, while gross margin decreased from 10.8 percent to 8.49 percent, the company said.

In the first half of this year, net profit surged 58.41 percent to NT$273 million from NT$172.34 million in the same period last year, it said.

First-half revenue dropped about 25 percent annually to NT$11.98 billion from NT$15.88 billion, but revenue for last month rose about 6 percent to NT$2.06 billion from June and the company expects a recovery in the second half, pinning hope on rebounding prices for NAND flash and DRAM chips, as well as seasonal demand ahead of new product launches by clients.

“Operations will be significantly better in the second half, as chip prices and shipments are on the rise,” Adata said in a statement. “Customers show strong restocking demand as they try to increase inventory to a safe level.”

Separately, ChipMOS Technologies Inc (南茂科技), a driver IC and memorychip tester and packager, has a positive outlook for the current quarter.

“As new mobile phones are to hit the market, inventory buildup demand is on the way,” ChipMOS chairman Cheng Chih-chieh (鄭世杰) told an investors’ teleconference on Tuesday. “Demand from the memorychip segment will be better than driver ICs.”

In the second quarter, ChipMOS net profit was NT$1.27 billion, up from NT$193.7 million in the first quarter, or EPS of NT$1.74, up from NT$0.27.

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