Memory module makers Apacer Technology and Innodisk, which focus more on industrial applications than mass-market market segments, both saw profits decline in the third quarter of 2020.

Apacer's third-quarter net profits fell 21.1% sequentially to NT$194 million (US$6.8 million) - the lowest since its listing on the Taiwan Stock Exchange (TWSE) - with EPS reaching NT$0.24. Apacer reported revenue grew by a slight 0.45% on quarter to nearly NT$1.7 billion in the third quarter, when gross margin slid 5.47pp to 11.03%.

Innodisk generated revenue of NT$1.63 billion in the third quarter, down 15.1% sequentially, when net profits declined 21.1% on quarter to a seven-quarter low of NT$194 million. EPS for the quarter came to NT$2.39.

Innodisk expressed previously caution about its sales for the rest of this year, but said it is gearing up for end-market demand recovery in 2021. The flash device specialist posted net profits of NT$756 million in the first three quarters of 2020, down 3.6% on year, when gross margin slipped 1.5pp from a year earlier to 30.03%.

Apacer, which supplies DRAM modules and flash storage products, disclosed net profits of NT$235 million for the first three quarters of 2020, down 14.7% on year. Gross margin fell 2.1pp from a year ago to 16.65% during the nine-month period.

On the other hand, fellow memory module company Adata Technology expects to see its fourth-quarter revenue stay flat or outperform the prior quarter's level. Company chairman Simon Chen was quoted as saying in previous reports that demand for AI, IoT, 5G and automotive electronics applications will be driving the overall memory market growth next year.

By: DocMemory
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