Inotera Memories slipped into the red in the first quarter of 2016 with revenues falling due to falling DRAM ASPs and shipments.

Inotera has announced operating loss of NT$908 million (US$28.1 million) on consolidated sales of NT$10.81 billion for the first quarter of 2016. The company swung to net loss of NT$1.56 billion in the first quarter with EPS turning to negative NT$0.24.

The results marked Inotera's first quarterly loss in three years.

Inotera's revenues for first-quarter 2016 were down 7% on quarter, due mainly to "a sequential decline in average selling prices in the market place and a decline in wafer shipments," the company indicated.

Looking forward, Inotera expects its bit shipments to register a double-digit sequential increase in the second quarter. The company added it is set to convert all of its wafer starts capacity to 20nm process technology by the end of second-quarter 2016.

In other news, Taiwan's Fair Trade Commission (FTC) has approved the planned merger between Inotera and Micron Semiconductor Taiwan (MST), a Taiwan-based unit of Micron Technology. Earlier in 2016, Inotera announced the signing of a definitive agreement to conduct a share-swap transaction with MST. After closing of the transaction, Inotera will become a unit of Micron and delist from the Taiwan Stock Exchange (TSE).

According to the agreement, MST will acquire all of the issued and outstanding common shares of Inotera for NT$30 per share in cash. The deal is expected to close in the middle of 2016, according to Inotera.

By: DocMemory
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