Elpida posts profit, sees DRAM price erosion
11/1/2010 3:38 PM EDT
SAN FRANCISCO—Japan's Elpida Memory Inc. Monday (Nov. 1) reported strong year-to-year gains for the second quarter and first six months of its fiscal year, but the company experienced sequential sales decline between its first and second quarters due to eroding DRAM selling prices.
Elpida (Tokyo) reported preliminary sales for the six months ended Sept. 30 of 325 billion yen ($4 billion), up 92 percent compared to the same six months of its fiscal 2009. The company posted a preliminary net income for the period of 39.5 billion yen ($490.3 million), compared to a net loss of 51.6 billion yen in the year ago period.
For the quarter ended Sept. 30, Elpida reported sales of 148.7 billion yen ($1.8 billion), down 16 percent sequentially but up 55 percent compared with the year-ago quarter. The company reported a net income for the quarter of 8.8 billion yen ($109.2 million), down 71 percent from the previous quarter and compared to a net loss of 7.2 billion yen in the year-ago quarter.
Year-to-year first half sales growth was mainly due to an increase in DRAM bit shipments and average selling prices (ASPs), Elpida said. The quarter-to-quarter sales decline from the first quarter to the second quarter was due to declining ASPs and sharp appreciation of the Japanese yen, Elpida said. Quarter-to-quarter bit growth in the second quarter was at the lower end of the company's guidance of 5 to 10 percent, Elpida said.
Elpida plans to post its final results for the first half and second quarter of its fiscal year Thursday.