Winbond Electronics has reported net profits for the second quarter of 2013, ending a string of six consecutive quarter losses.

Winbond announced second-quarter consolidated revenues of NT$8.85 billion (US$294.9 million), up 15% sequentially, with gross margin climbing 7pp on quarter to 23%. Improvements in product and customer mix helped improve company ASPs and generate higher gross margin, Winbond indicated.

Winbond swung to net profits of NT$416 million in the second quarter, from losses of NT$337.4 million in the first quarter and losses of NT$209.7 million in second-quarter 2012. EPS for second-quarter 2013 arrived at NT$0.10.

Of Winbond's NOR flash revenues, 58nm products accounted for 37% in the second quarter compared to 33% in the first. Sales of Winbond's 58nm NOR chips logged a 30% sequential increase in the second quarter. Winbond added its overall NOR flash revenues also grew on quarter, thanks to increased demand for handheld devices, hard drives and other PC peripherals.

As for Winbond's mobile DRAM business, sales of its low-power DRAM contributed 55% to the total revenues generated from the unit in the second quarter. Meanwhile, ASPs for Winbond's specialty DRAM improved in the second quarter with a higher gross margin. The specialty DRAM business also posted shipment growth on quarter driven by demand for hard drives, networking devices, TVs and printers.

Of Winbond's specialty DRAM revenues, 46nm products accounted for 35% in the second quarter compared to 25% in the prior quarter, the company revealed.

Looking forward, Winbond expects to benefit from huge growth in the low price segments of the smartphone and tablet markets. The company is also looking to enhance its high-margin product lines including niche-market flash and DRAM products for industrial and automotive segments, and known-good-die (KGD) solutions.

By: DocMemory
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