Feeds

Elpida slashes FY2004 income forecast

Cash set aside against possible DoJ price-fix probe fines

  • alert
  • submit to reddit

Website security in corporate America

Elpida has warned that its FY2004 income will fall below its previous expectations on the back of a drop in sales - and the decision to set aside funds against possible fines for its alleged participation in a price-fixing cartel.

The Japanese memory chip maker said on 24 January that full-year sales would total ¥211-214bn ($1.94-1.97bn), generating net income of ¥12-16bn ($110.48-147.30m).

Today, however, the company revised those figures to ¥207bn ($1.91bn) and ¥8.1bn ($74.57m), respectively. That amounts to shortfalls of 1.9-3.3 per cent and 32.5-50.6 per cent, respectively.

The revision still leaves Elpida well up on FY2003, when it lost ¥26.9bn ($247.65m) on sales of ¥100.4bn ($924.32m).

Elpida said it had needed to make the revision on falling DRAM prices in the PC and server segments, and weaker than anticipated demand in the consumer electronics and mobile phone markets.

It also said it was ring-fencing ¥1.9bn ($17.49m) in case the US Department of Justice finds the company guilty of participating in a price-fixing cartel. The admission follows fellow memory maker Hynix's decision to set aside KRW347bn ($341m) for similar reasons. Last December, Samsung said it was reserving $100m in case it, too, receives a fine.

All three companies have been investigated by DoJ officials exploring allegations that memory companies colluded to maintain DRAM pricing levels. Micron has already coughed to its participation, blaming it on the actions of individual executives rather than company policy. Its move to admit its culpability and to co-operate with the Feds appears to have saved it a hefty fine. Not so Infineon, which last August was fined a record $160m.

Elpida said it was "co-operating with the DoJ in its investigation". It will report its FY2004 results on 25 April. ®

Related stories

Hynix ring-fences $342m against antitrust fines
Samsung founds $100m antitrust fines fund
Micron employees fixed DRAM prices
Infineon pleads guilty to memory price-fixing

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.