SAN JOSE, Calif. - South Korea's Samsung Electronics Co. Ltd. beat analysts' estimates for the third quarter, but the company issued a warning about a pending DRAM glut in the marketplace.
Samsung said net income was 4.46 trillion won ($3.97 billion) for the quarter, up 17 percent from a year ago. According to Bloomberg, Samsung was projected to see a net of 4.5 trillion won. The company posted revenue of 40.23 trillion won in the quarter, up 12 percent from a year ago.
Semiconductor sales were 10.66 trillion won in the period, up 43 percent from a year ago. Of that, memory sales were 7.49 trillion won in the period, up 60 percent from a year ago. Operating profit for the semiconductor unit was 3.42 trillion won for the period, up 17.5 percent year-over-year.
Citing slow PC sales, DRAM was weaker than expected, which led to oversupply in the arena, according to Samsung. NAND demand remained strong, according to the firm. In its outlook, Samsung said ''oversupply would continue with weak PC demand.''
That's bad news for all DRAM vendors. What's more, the race to ship 30-nm-class DRAMs has begun and Samsung has taken the early lead. The 30-nm DRAM race is starting at a time when the market is slowing-if not collapsing, according to VLSI Research Inc. The first half of 2010 was a banner period for the DRAM industry, but now vendors are wondering if the sky is falling amid a technology race in the arena.
Meanwhile, Samsung's LCD business grew 4 percent year-over-year, due to slow demand. Handset shipments were up 12 percent from the previous period.