Memory module maker Adata Technology has reported record net profits of NT$1.13 billion (US$37.7 million) for the second quarter of 2013.

Gross margin and operating margin for the quarter climbed to 18.95% and 14.29%, respectively, also hitting record quarter levels.

Adata's earnings for second-quarter 2013 translated into a net EPS of NT$5.35, the highest among Taiwan's memory module stocks.

Adata credited the positive profit results to strong growth in sales generated from its DRAM business. In addition to strengthening DRAM prices, Adata's expanding distribution network worldwide has also helped boost sales of its DRAM modules, the company said.

Consolidated revenues at Adata increased 19% sequentially and 34% from a year ago to NT$9.12 billion in the second quarter. Of the second-quarter sales, DRAM modules accounted for 62.69%, and NAND flash and other products took up the remainder.

Looking forward, Adata CEO Simon Chen commented that the industry supply and demand conditions will be favorable in the second half of 2013. As more chipmakers put increased focus on NAND flash, mobile DRAM and other non-PC DRAM products, supply of PC DRAM memory is likely to tighten later in 2013, said Chen.

In other news, Adata has signed a new supply agreement with Micron Technology, which recently completed its acquisition of Elpida memory and a majority ownership of Rexchip Electronics in Taiwan, according to industry sources. The deal would provide Adata sufficient PC DRAM chip supply.

By: DocMemory
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