Friday, April 21, 2006
Taiwan-based memory-module maker Taiwan-based memory-module maker A-Data Technology is projecting that healthy trends in the pricing of both NAND flash and DRAM, in the second quarter and the company’s revenues should grow by 20% on-quarter, said company chairman Simon Chen at an April 17 investors conference.
A-Data is reporting that its quarterly revenues dropped by 14.9% on-quarter to NT$7.34 billion, with profits almost halved to NT$203 million in the first quarter of 2006. Chen explained that a sequential quarterly drop of over 50% in margins was the result of a sharp fall in the average selling price (ASP) of NAND flash, in the first quarter.
Chen noted that drops in the price of NAND would reach their maximum rate in the first quarter, implying that price drops in the second quarter would be limited. He also emphasized that ASPs should edge to their lowest levels in the second quarter, on warming demand.
The plummeting price of NAND, on a year-on-year basis, has spurred demand and is a good sign for industry makers, Chen stressed. The density of mainstream NAND flash has now jumped two-fold, and the price fall had also edged smaller-scale makers out of the market, he explained.
DRAM, which has seen a bullish uptick in prices in 2006, was clearly priced up in the last week of March, amid a drop in DDR output. The ASP of DDR should stabilize in the second quarter, while the environment for DDR2 should improve within the same period, said Chen. and the company’s revenues should grow by 20% on-quarter, said company chairman Simon Chen at an April 17 investors conference.
A-Data is reporting that its quarterly revenues dropped by 14.9% on-quarter to NT$7.34 billion, with profits almost halved to NT$203 million in the first quarter of 2006. Chen explained that a sequential quarterly drop of over 50% in margins was the result of a sharp fall in the average selling price (ASP) of NAND flash, in the first quarter.
Chen noted that drops in the price of NAND would reach their maximum rate in the first quarter, implying that price drops in the second quarter would be limited. He also emphasized that ASPs should edge to their lowest levels in the second quarter, on warming demand.
The plummeting price of NAND, on a year-on-year basis, has spurred demand and is a good sign for industry makers, Chen stressed. The density of mainstream NAND flash has now jumped two-fold, and the price fall had also edged smaller-scale makers out of the market, he explained.
DRAM, which has seen a bullish uptick in prices in 2006, was clearly priced up in the last week of March, amid a drop in DDR output. The ASP of DDR should stabilize in the second quarter, while the environment for DDR2 should improve within the same period, said Chen.
By: DocMemory
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