Wednesday, November 8, 2006
Renesas Technology Corp. said it returned to profitability in the first half of its fiscal year (April-September) after reporting two consecutive losses in its fiscal 2005.
In first-half financial results, Renesas said its sales totaled ¥477 billion ($4.05 billion), up 8.5 percent from the same period last year. Operating profit totaled ¥14 billion ($119 million) and net profits of ¥6 billion ($51 million), compared to a ¥2 billion ($17 million) loss the year before.
"Microcontrollers and system-on-chip LSIs contributed the profitability," said Satoru Ito, Renesas chairman and CEO. "We'd been investing on our system-on-chip business, and it started yielding profit in the first half of this fiscal year," Ito added.
The Renesas product line consists of commodity items like microcontrollers and LSI drivers, system-on-chip LSIs and memories. The commodity business accounts for about 60 percent, its system solution business is 30 percent and the memory business is 10 percent.
"We are going to shrink our memory business gradually as planned. On the other hand, we are going to our expand system-on-chip business at a high pace to cover the memory shrinkage," Ito said. Renesas withdrew from the flash memory business and has stopped developing flash products.
By: DocMemory
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