Elpida Memory posted a fifth straight quarterly loss as a result of market erosion.

The company said that an accelerated fall in consumer spending, manufacturing adjustments, and higher rates of unemployment amid the current economic woes hit its performance during the third quarter of fiscal 2008 (ended December 31, 2008).

Elpida posted revenues of 61.8 billion yen (US$679.7 million) in the third quarter of fiscal 2008, down 46% sequentially. As selling prices continued to stay below manufacturing costs and the Japanese yen grew stronger, the company recorded a net loss of 72.3 billion yen.

Gross losses for the quarter reached 42.9 billion yen, compared to a loss of eight billion yen in the second quarter of fiscal 2008 (ended September 30, 2008). Meanwhile, Elpida's operating losses totaled 57.9 billion yen, expanded from a loss of 24.5 billion yen in the previous quarter.

Elpida's bit shipments went up 5% sequentially in the third quarter of fiscal 2008, but its average selling price (ASP) was down 44%, according to the company. Citing DRAMeXchange, the company said that average spot prices for 1Gb DDR2 SDRAM slid about 50% sequentially during the quarter.

In terms of computing DRAM, Elpida saw its net sales decrease 45% sequentially to 34.7 billion yen in fiscal third-quarter 2008, as prices for PC-use DRAM products suffered a sharp decline. Elpida has kicked off mass production of its 50nm products this quarter (the company's fourth quarter of fiscal 2008, ended March 31 2009) and expects development of its advanced process technology to bring more cost competitiveness.

As for its premier DRAM business, net sales for the quarter dropped 47% sequentially to 27.1 billion yen, as a result of softened demand in the digital consumer electronics and mobile phone applications.

By: DocMemory
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