Memory Corp turns corner
DRAM company turns corner
The Memory Corporation has issued a statement saying that it expects to post an operating profit for the first time in three years. Memory Corp has now risen from the depths of financial red ink to report an expected operating profit in the second half of this year, after reporting gross profits in Q1 and Q2. Last year the company reported losses of £3.31 million with pre-tax losses standing at £1.2 million. Datrontech owns 49 per cent of Memory Corp and embarked on a joint venture with the company, which culminated in a new company called DTEC. According to John Byrne, joint managing director at Vanguard Microelectronics, this was a major filip for Memory which has emerged from a financial pounding on the AIM which saw its share price plummet from 555p three years ago to 26p earlier this year. “It’s turned a corner,” said Byrne, “but not as a result of standard memory products. Its strategy is good and the deal with Datrontech has been a good marriage.” Datrontech got involved with Memory Corp at a time when it needed to boost confidence among its shareholders. The result was that Datrontech’s share price has grown and Memory Corp has started to see some financial light. Memory Corp bought Memory Plus and a Hong Kong sourcing company, both of which have now been drafted into the overall Datrontech fold. The Hong Kong company, to be called DTEC Asia has, according to DTEC managing director Andrew Mackenzie, “put us two days ahead of the market because we don’t have to rely on other companies to feed us the information.” Mackenzie added that the current upturn in the DRAM market and the fact that Memory and DTEC can draw on the overall Datrontech distribution model, “has undoubtedly helped both companies.” While the memory market has become accustomed to live in fear of short-term false growth, both Byrne at Vanguard and Mackenzie believe the market is really on the right road now, due largely to Korean restructures and manufacturers such as TI dropping out of the market.