Thursday, March 08, 2018
Nanya Technology Corp , the world’s No. 4 DRAM supplier, yesterday reported a 3.59 percent decline in revenue for last month, breaking an eight-month growth streak due to lower shipments and a stronger local currency.
The memory chipmaker managed to keep average selling prices flat last month and said that its first-quarter earnings target remains attainable.
Nanya Technology in January forecast that DRAM prices would rise mildly this quarter, continuing an upward spiral from the second half of last year.
The price hikes should help lift its gross margin from 49.8 percent last quarter, the chipmaker said.
PC DRAM prices are to climb 5 percent sequentially this quarter, market researcher TrendForce Corp forecast.
Prices for DRAM used in servers are to increase between 3 and 5 percent, it added, attributing the trend to rising demand for data centers from the four major Internet service providers in North America.
Nanya Technology’s revenue fell to NT$5.93 billion (US$202.5 million) last month, compared with NT$6.15 billion in January, marking the first monthly decline since June last year, a company statement showed.
The memory chipmaker attributed the a low-single-digit drop in shipments to fewer working days last month because of the Lunar New Year holiday.
The appreciation of the New Taiwan dollar against the US dollar also cut into its revenue, the company said.
The company is relatively vulnerable to foreign exchange volatility as a large portion of its revenue is based in US dollars. Every 5 percent appreciation in the NT dollar would erode its revenue by 4 percent, it estimated.
Nanya Technology saw its revenue surge at an annual pace of 49.3 percent from NT$3.97 billion in February last year on the back of DRAM supply constraints.
Shares of Nanya Technology rallied 1.53 percent to NT$79.60 yesterday, outstripping the TAIEX’s 1.33 percent gain.
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