A-Data Technology said its first quarter gross margin decline to 4.22% from 7.33% amid falling DRAM price. However, the company expects overall memory prices to stabilize or even increase this quarter, according to the source in Taiwan citing the company chairman Simon Chen.

The average price for mainstream 256Mbit DDR dropped 72.1% from January to June, according to DRAMeXchange. However, DRAM prices started to bottom out in the second half of June amid tighter supply and heating up demand, Chen said.

Two unnamed Korea-based memory makers have reduced their DRAM supply to the spot market since early July, according a report by DRAMeXchange. Declining DDR supply should boost 256Mbit DDR (32Mbx8) prices to the range of US$2.75 - 2.85 in August, DRAMeXchange predicted.

The company expects its sales to increase more than 25% sequentially in July to NT$2.6 billion and its gross margins to rebound as overall memory products unlikely to fluctuate much this quarter, Chen added.

By: DocMemory
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