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. ®

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