LONDON With the average selling price (ASP) for PC DRAMs rising 30 percent compared with the previous quarter Elpida's PC DRAM product sales soared in its third financial quarter, which ended Dec. 31, 2009.
Elpida's third quarter net sales were 151.0 billion yen (about $1.67 billion), up 57.5 percent sequentially and 144.5 percent compared with a year before. The company made a 3Q net profit of 21.1 billion yen (about $234 million), which reflected a 93.4 billion yen improvement over a year-ago loss of 72.3 billion yen.
Elpida Memory Inc. (Tokyo, Japan) said that the steady growth in the shipments of notebook PCs, smart phones and digital TVs witnessed in the second financial quarter carried over into Q3 which ended Dec. 31, 2009.
DRAMs used in mobile phones and digital consumer electronics, which registered a slight sequential decline in shipments due to seasonal factors, accounted for about 20 percent of net sales. Sales of DRAMs for servers and PCs rose considerably due to higher shipment volumes and selling prices, to account for about 80 percent of net sales, up from just less than 70 percent in the 2Q.
While the rise in PC shipments pushed up demand for memory, the supply of DRAM chips continued to tighten, causing spot and contract prices for 1-Gbit DDR2 and DDR3 SDRAM to jump considerably higher.
For the nine months of FY 2009, Elpida's net sales climbed 12.2 percent year-on-year to 319.4 billion yen (about $3.54 billion), as a higher volume of shipments overcame a lower ASP. The net loss was reduced to 30.6 billion yen (about $340 million) compared with a 9-month loss of 118.0 billion yen (about $1.31 billion) a year earlier.