SAN JOSE, Calif. Qimonda AG (Munich, Germany) also posted sales of 984 million euros ($1.3 billion) in the second quarter of 2007, compared to 928 million euros ($1.27 billion) in the same period last year and 1.17 billion euros ($1.59 billion) in the first quarter of 2007.
Net income increased to 57 million euros ($77.7 million), compared to a net loss of 9 million euros ($12.3 million) in the second quarter of FY 2006. In the prior quarter net income amounted to 177 million euros ($241.4 million).
''In a weaker market environment with severe price erosion for standard DRAM products, we maintained positive earnings. Our diversified DRAM product portfolio partially mitigated the effect of the price pressure on our results,'' said Kin Wah Loh, President and CEO of Qimonda, in a statement.
On a year-over-year basis, quarterly net sales increased mainly due to Qimonda's 30 percent bit-shipment growth, which more than offset the combined effects of a decline in average selling prices and a weaker U.S. dollar.
Qimonda expects its bit production to grow by 8 to 12 percent in the third quarter of FY 2007, mainly based on additional capacities from the 300-mm line in Richmond and its joint venture in Taiwan, dubbed Inotera. It expects continued productivity improvements as a result of the conversion of more capacities to 80-nm technology and below.