Inotera Memories yesterday reported strong sequential revenue growth for the first quarter, and revealed that its migration to 90nm production will be completed in the third quarter, further boosting the company’s business.

Inotera president Charles Kao said the company is increasing 90nm output from its Fab 1 by 10,000 12-inch wafers each month, and the company expects to the migration to be completed by August.

Intotera’s revenues in the first quarter increased 22% sequentially to a company record NT$8.54 billion (US$263.7 million). Its net income prior to a change in accounting principles amounted to NT$2.67 billion, up 86% compared to the fourth quarter of 2005. The change in accounting principles resulted in a deduction of NT$238 million from the net income.

Kao attributed the strong growth to rising DDR2 prices and the company’s ability to raise cost-efficiency. Prices for 512Mbit DDR2, a chief product for Inotera, have been rising since February, and in the first quarter the company’s wafer output increased and yield rates improved.

The company’s margins increased to 34% in the first quarter from 27% in the fourth quarter last year. First-quarter bit growth was up 14% sequentially, and the company expects bit growth to rise 80% in 2006.

Kao said the company will see even stronger revenue and profit growth in the second quarter, as production costs will be further reduced. Output will also increase 14% and the average selling prices (ASP) should stay at a similar level to the first quarter, he added.

Equipment installation at Inotera’s Fab 2 is expected to begin in November this year, and test runs will be conducted in the first and second quarters of 2007. By the end of 2007, Inotera’s total capacity from Fab 1 and Fab 2 will be 92,000 12-inch wafers monthly.

By: DocMemory
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