Local memorychip maker Winbond Electronics Corp (‰Ø–M“d) yesterday reported third-quarter net income of NT$962 million (US$31.63 million), or earnings per share of NT$0.25, citing increasing demand for automotive and consumer electronics products.

Last quarterfs figure was higher than the NT$137 million, or NT$0.04 per share, posted the previous year and the NT$784 million, or NT$0.19 per share, the previous quarter.

It also represented the highest quarterly level in the past four years, company data showed.

While the companyfs sales were NT$9.93 billion for last quarter, up 1.9 percent year-on-year and 2 percent quarter-on-quarter, gross margin was 28.24 percent, higher than 21.89 percent the previous year, but nearly flat from 28.45 percent the previous quarter.

gI am not satisfied with the gross margin, but we are working to move above the 30 percent mark in the next two years,h Winbond president Chan Tung-yi (û¥“Œ‹`) told investors on a conference call.

By product, sales of specialty DRAM comprised 54 percent of Winbondfs third-quarter revenue, up 10 percent quarter-on-quarter, due to growing demand in the automotive, industrial device, TV and set-top box sectors.

Meanwhile, sales of NAND flash memory products accounted for 35 percent of revenue last quarter and mobile DRAM products made up 11 percent, Winbond said.

Amid a product transition among its customers, Winbond's sales of mobile memory products fell 11 percent from the second quarter. Chan attributed the decline to less orders from one of the companyfs main clients, without elaborating.

In order to seize potential business opportunities associated with the Internet of Things, Winbond plans to set aside NT$13.9 billion for capital expenditure this year and next year, Chan said. The company spent NT$2.1 billion for capital expenditure last year.

gOur monthly capacity will rise from 40,000 units to 44,000 units by next year,h Chan said, noting that the capacity for 46-nanometer DRAM modules will also increase.

Separately, Winbondfs subsidiary Nuvoton Technology Corp (V“‚‰È‹Z) also released its third-quarter results yesterday, posting a net income of NT$88 million, or earnings per share of NT$0.42, up 61 percent year-on-year, but down 51 percent quarter-on-quarter.

Nuvotonfs consolidated revenue was NT$1.79 billion last quarter, up 3 percent year-on-year, but down 5 percent quarter-on-quarter.

Nuvoton president Sean Tai (‘Տ®‹`) said the companyfs performance was affected by seasonal factors and challenges remain this quarter because the foundry, PC and consumer electronics segments have entered the slow season.

Tai said demand in the PC industry is set to decline next year, but the company is launching new products this quarter to sustain its growth momentum.

Winbond shares yesterday declined 0.84 percent to close at NT$8.26, while Nuvoton shares fell 4.68 percent to close at NT$26.5 in Taipei trading, ahead of the conference calls.

By: DocMemory
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