The DRAM maker is also putting aside and ring-fencing Yen 1.9 billion (about $20 million) to cover possible fines related to the US Justice Department's allegations that the company's US subsidiary was involves, with others, in a price-fixing cartel.

Elpida (Tokyo) is now projecting sales for the period of Yen 207 billion (about $2 billion) and operating profits of Yen 15 billion (about $140 million). Late January, the DRAM maker warned it would not meet earlier forecasts from November 2004.

The company said 24 Jan. that sales for the fiscal year would reach between Yen 211 billion and Yen 214 billion ($2 billion to $2.1 billion) and operating income would be Yen18 billion to Yen 22 billion ($176 million to $216 million).

Those forecasts were themselves down on guidance issued last November that indicated sales would be Yen 220 billion (about $2.2 billion) and that operating profits would come in at about Yen 26.5 billion (about $260 million).

Elpida reported its first profits since its foundation in 1999 for its fourth 2003 fiscal quarter ended March 2004. Since then, the company has raised its ratio of operating profit to sales from 7 percent the first quarter of fiscal 2004 to 10 percent the second and third quarters.

However, following the latest revision, these figures are likely to come in lower for its fiscal year ending March 2005. Elpida says it is "co-operating with the DoJ in its investigations" into alleged DRAM price fixing. Other memory makers, such as Hynix and Samsung have also put aside large sums for their participation in the alleged antitrust violations.

Elpida said it would report its financila year 2004 results on April 2

By: DocMemory
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