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.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Nano-X Imaging Ltd, a start-up founded by Israeli investor Ran Poliakine, is joining forces with South Korean chipmaker SK Hynix Inc to build a machine that could disrupt a century-old X-ray industry. Valued at about US$2 billion after listing on the NASDAQ last month, Nano-X is seeking to transform a multibillion-dollar industry that has essentially relied on the same technology since Nobel Prize in Physics winner Wilhelm Roentgen discovered X-rays in the late 19th century. Nano-X’s device uses semiconductors instead of metal filaments to generate X-rays. The backing of SK Hynix, the world’s second-largest maker of memory chips, is a boost for
Continental AG, which makes control units for Daimler AG cars, cannot pursue antitrust claims against a group of patent owners, including Qualcomm Inc, which are seeking royalties on telecommunications technology, a federal judge in Texas ruled. Avanci LLC, a licensing pool formed by Qualcomm, Nokia Oyj, Sharp Corp and other owners of patents on technology standards, is not breaching antitrust laws when it negotiates license agreements with automakers rather than the component makers, Barbara Lynn, chief district judge for the Northern District of Texas, said in dismissing the suit in a decision posted on Friday. The licensing group charges US$15 per vehicle
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into