Nanya reports big revenue decrease

By Lisa Wang  /  Staff reporter

Fri, Jan 04, 2013 - Page 14

Local PC DRAM chipmaker Nanya Technology Corp (南亞科技) yesterday said its revenue plunged 20.8 percent last month as it cut production to rein in excessive inventory.

Revenue fell for the third consecutive month to NT$2.11 billion (US$72.53 million) last month, from NT$2.67 billion in November. That represented an annual increase of 5.2 percent from NT$2 billion, according to the a statement from the Taoyuan-based chipmaker.

“To manage our inventory at a healthy level, the company started cutting production of standard PC DRAM [chips] in October. The effect was magnified in December,” Nanya spokesman Lee Pei-ing (李培英) said.

Nanya began trimming 20 percent of its production of PC DRAM chips in October, a reduction that resulted in a 30 percent contraction in shipments last month from November, the company said.

“Now, we only supply standard PC DRAM [chips] to customers with long-term contracts,” Lee said.

Average selling prices soared 14 percent last month from November backed by customers’ inventory replenishment demand and stabilizing DRAM chip supply, Nanya said.

In the final quarter of last year, the company made NT$7.02 billion in revenue, up 7.18 percent from NT$6.55 billion in the third quarter. The figure represents a decline of 2.64 percent from NT$7.21 billion a year ago.

For the whole year, revenue shrank 11.6 percent to NT$32.48 billion from NT$36.74 billion in 2011.

Separately, Inotera Memories Inc (華亞科技), a joint venture between Nanya and US memorychip maker Micron Technology Inc, yesterday said revenue increased 7.1 percent to NT$3.18 billion last month from NT$2.97 billion in November.

That represented an annual increase of 13.3 percent, from NT$2.8 billion.

The company accumulated NT$9.27 billion in revenue last quarter, 6.67 percent higher than the third quarter’s NT$8.69 billion, and up 6.55 percent from NT$8.7 billion a year ago.

For the whole of last year, revenue slipped 5.59 percent to NT$35.3 billion from NT$37.39 billion in the previous year, Inotera said in a statement.