Macronix International swung to net losses of NT$1.09 billion (US$37 million) in the first quarter of 2012 from profits in the prior quarter and a year ago.

First-quarter revenues at Macronix slipped 40% sequentially and 23% on year to NT$5.08 billion (US$172.4 million), missing the company's guidance range of NT$5.2-5.8 billion. It generated a 14% gross margin in the quarter, which also came in below its estimate of 20-24%. Meanwhile, operating margin for first-quarter 2012 fell into negative territory at 15%.

Macronix attributed the disappointing results to decreasing demand for mask ROM as well as falling ASPs of its NOR flash products.

In the first quarter, sales generated from Macronix's ROM product segment registered decreases of 64% sequentially and 43% from a year earlier. Unit shipments of its ROM chips also saw declines of 55% on quarter and 46% on year in the quarter, the company revealed.

Meanwhile, sales of NOR flash memory were down 8% from a year ago and 15% sequentially in the first quarter of 2012, with unit shipments decreasing 2% on year and 13% on quarter, Macronix disclosed. The product segment accounted for 61% of company revenues in the first quarter.

Macronix also carried higher manufacturing costs that hurt its gross margin performance in the first quarter, the firm noted. The rising costs were a result of problems associated with integrating old and new tools at the 12-inch fab that it acquired from ProMOS Technologies previously, and the transition from DRAM-based manufacturing to NVM-based at the facility, Macronix said.

Looking forward, Macronix did not provide its guidance for the second quarter, but claimed it is eyeing a return to profitability in the third or fourth quarter of 2012. The firm believes its business should recover gradually from the first quarter.

In addition, Macronix said it is scheduled to volume produce NAND flash memory in the third quarter of 2012. The firm also plans to start shipping ROM chips built using a newer 45nm process in the same quarter, and expects 45nm to be its major production node for ROM memory in 2013.

By: DocMemory
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