Adata Technology Co (威剛), the world’s No. 2 own-brand memory module supplier, yesterday said that its net profit expanded at a quarterly rate of 11 percent last quarter on the back of robust demand for solid-state drives (SSDs) and gains from its investment in Taiwan Sports Lottery Co (台灣運彩).
Adata expects new 5G smartphones and game consoles, as well as continuous demand for notebook computers to further boost shipments of its SSD and DRAM chips, Adata said in a statement.
The contract prices for DRAM and NAND flash memory chips have also improved, as the drop in prices is narrowing this quarter, after two straight quarters of declines, the company said.
“The company is optimistic about this quarter’s operations. There is a chance that [revenue] will be flat compared with the third quarter, or even better,” Adata said.
The firm, which is based in New Taipei City’s Sindian District (新店), made NT$8.66 billion (US$300.4 million) in revenue last quarter, an increase of 15.84 percent quarter-on-quarter and 33.67 percent year-on-year.
The stay-at-home economy is stimulating demand for gaming laptops and peripheral products, adding to the uptrend in demand and chip prices, Adata said.
Next year’s outlook is also positive, as many customers have adopted its new products in industrial devices, which would boost its revenue and profits, Adata said.
Net profit expanded to NT$313 million in the quarter ending Sept. 30, compared with NT$281 million a quarter earlier, but tumbled 25.42 percent from NT$419 million a year earlier.
That translated into earnings per share (EPS) of NT$1.37 for last quarter, up from NT$1.2 in the second quarter, but down from NT$1.91 a year earlier.
Adata said that it booked NT$108 million in gains last quarter from the sports lottery firm, in which it holds a stake of about 48 percent.
Operating profit dipped 1.46 percent quarterly to NT$327 million, and declined 13.82 percent annually.
In the first three quarters of the year, net profit soared 56 percent year-on-year to NT$1.04 billion, while operating profit skyrocketed 6.8 times to NT$1.57 billion. Combined EPS climbed to NT$4.7 in the first three quarters.
Revenue last month jumped 35.41 percent year-on-year to NT$2.89 billion, but was down 9.68 percent from September’s NT$3.2 billion.
Revenue from SSD products rose to more than NT$1 billion, a 37.46 percent increase and all-time high.
Separately, memorychip maker Winbond Electronics Corp (華邦電子) said that its revenue last month soared 58.86 percent year-on-year to NT$6.68 billion from NT$4.32 billion, but was down 1.89 percent from a month earlier.
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