Elpida falls into red on weak DRAM prices
PrintDespite growing sales
Posted in Financial News, 22nd July 2005 10:15 GMT
Free whitepaper – Thermal design of Dell PowerEdge server
Elpida lost ¥3.30bn ($29.9m) on sales of ¥48.04bn ($434.8m) during Q1 FY2005, the memory maker said yesterday.
It blamed its fall into the red on rapidly declining memory prices, which more than countered rising sales. The quarter's revenues were up 5.5 per cent on the year-ago period's ¥45.54bn ($412.2m).
During June, Elpida noted, DRAM prices began to stabilise in the PC and server markets. At the same time, it said, the industry-wide inventory correction problem is coming to a close with indications that demand from the consumer electronics and mobile phone sectors is starting to move upward - net sales to these markets were up 66.04 per cent year on year, Elpida said.
The company forecast Q2 will see sales continue to rise, to between ¥52bn ($470.7m) and ¥55bn ($497.9m), for growth of 8.2-14.5 per cent. However, that growth and improving prices will not be sufficient to generate a strong quarterly profit, Elpida admitted. It expects anything between a ¥4bn ($36.2m) loss and the break-even point. ®
Related stories
Freescale grows Q2 earnings on flat sales
Intel overcomes 'weak' line-up during Q2
AMD shrugs off Intel shackles for ace Q2
Chip kit market shrinks
TSMC, UMC Q2 sales slide
Elpida touts 'first' 2Gb DDR 2 chip
Elpida declares first annual profit
Analyst Keynote: The Register Agile Data Center Summit
Managing desktop software for fun and profit
Automating the Acquisition Process with Enterprise Level CRM
10 Strategies for Choosing a Midmarket ERP Solution
Enabling the Agile Data Center
Google Spanner — instamatic redundancy for 10 million servers?
Early adopters bloodied by Ubuntu's Karmic Koala
Fedora 12 polishes Linux for netbooks
Sign up, sign up for The Register IT security newsletter