Winbond Electronics Corporation Announces First Quarter of 2002 Revenue Results

(HsinChu News)Winbond Electronics Corporation, a leading supplier of semiconductor solutions, today announced the outcome of its quarterly board meeting and its first quarter financial results. The Company's board of directors approved the audited first quarter results for 2002. First quarter results reflected revenues of NT $8.133 billion; an increase of approximately 16 percent when compared with the same quarter last year. The results also showed an increase of 43 percent when compared with the fourth quarter 2001 results of NT $5.77 billion. After tax net income was NT $146 million; a significant increase when compared to fourth quarter 2001 after tax loss of NT $4.115 billion. Earnings per share (EPS) was NT $0.03, also a significant improvement when compared with NT -$0.93 over the fourth quarter of 2001. Overall, the results signal a continued upward trend for the Company. 

Primarily due to a 10 percent decrease in operating costs, coupled with a significant increase of 43 percent in revenue, the Company's gross profits for the quarter reported a significant increase when compared to the fourth quarter of 2001. Gross margin improved from a negative 32 percent in the fourth quarter of 2001, to 17 percent in the first quarter of this year. Operating expenses were NT $2.136 billion. Non-operating income was NT $780 million; a decrease of 64 percent derived mainly from the recovery of inventory write down. Reductions in inventory amounted to NT $643 million. Non-operating expenses declined to NT $208 million, a decrease of 68 percent, mainly derived from the elimination of investment loss and a decrease of interest expenses.

Winbond's first quarter revenue results could be attributed mainly to an increase in DRAM pricing, increased demand for TFT-LCD ICs, seasonal increases in demand for voice and speech ICs and others consumer electronics products. Throughout the quarter, Winbond's revenue continued to grow steadily. Most notable was March's revenue of NT$ 2.961 billion which reflected a new high for the past 14 months. The results also show an increase of 17.8 percent over February's revenue.

In addition to DRAM, Flash products are another key product for Winbond. Currently, Winbond has considerable market share in the motherboard market using 2M Flash products. The recent increase in market demand for LCD Driver ICs , coupled with steady demand and stable pricing of 2M Flash, has also helped to improve Winbond's revenue. Winbond has both in-house R&D and a joint agreement with Sharp to manufacture Flash. Both Winbond and Sharp are working to research and develop 0.18-micron and 0.13-micron processes for ACT1 Flash production technology. Winbond estimates that 128Mb and 256Mb Flash will commence production in the fourth quarter of 2003 and the second quarter of 2004 respectively. These complementary technology development efforts coincide with Winbond's plans to begin production of 0.18-micron 32Mb NOR Flash products in the fourth quarter of 2002.

Winbond's Logic Product Business Group reorganized in March 2002, to form three product centers that will concentrate on microcontroller-based Consumer IC, PC & Peripheral ICs and Network Access IC. The Company's Logic Product Business Group will continue to concentrate on product development and marketing in expanding markets. For example, efforts for TFT-LCD Driver ICs, advanced microcontrollers, wireless digital communications and other lucrative product lines will focus on territories that have the most opportunity. As the Company transitions its operational style and product sales continue to grow, Winbond estimates that the Logic Product Business Group will contribute significant growth toward the Company revenues. 

This year, as the semiconductor industry continues to make a slow but steady turnaround, Winbond will aggressively pursue new product development and process technology advancements for each of its product lines. The Company will focus on development for niche DRAM, Flash and Pseudo SRAM, as well as provide complete memory IC solutions for mobile applications. Finally, in tandem with continued strong performance from the Company's Logic Product Group, Winbond estimates that overall, the Corporation will continue to experience improved performance throughout the year.

    Wilson Wen
    Vice President of Administrative Center

News Liaison
    Mike Liu
    Deputy Director

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