HOME

Winbond Electronics Announces Financials For The First Quarter of 2003

(Hsin-Chu, Taiwan) Winbond Electronics Corporation, a leading supplier of semiconductor solutions, today announced the results of its Board of Directors meeting held on April 25, 2003. The Company approved audited financial statements for the first quarter 2003. Net Sales totaled NT $6.727 billion, a decrease of approximately 17 percent when compared with NT $8.133 billion over the same period last year. Gross profit from operations totaled NT $619 million. Net loss after taxes was NT $892 million; net loss per share was NT $0.21. 

Winbond's first quarter revenues were impacted primarily by the low season in consumer products and slackening in market demand for dynamic random access memory (DRAM). In addition, the average spot price for 256Mb DDR fell 45 percent from the previous quarter. However, because shipments of Winbond's higher-margin products (including specialty DRAM and DDR400 products) increased, the Company's average selling price for DRAM products exceeded the market average. Although revenue from operations fell 17 percent when compared to the same period last year, operating loss remained nearly the same. This reflects a drop in Winbond's break-even point, proving that Company-wide efforts in operational cost controls over the past year have had a positive effect.

With respect to product distribution in the first quarter, logic products accounted for 30 percent; DRAM products 60 percent; and non-DRAM memory, including flash memory and static random access memory (SRAM), 10 percent. Logic products experienced a slight decrease of 3 percent, when compared to the traditional peak season in the fourth quarter of last year. This was due primarily to seasonal factors; consumer and communication product markets were relatively soft. However, due to increased market share for some key customers, Winbond's motherboard product revenues grew 30 percent. Operating revenue from DRAM products fell approximately 30 percent from the previous quarter, principally due to a drop in unit pricing. Finally, because pricing for low-density Flash products increased, operating revenue in the first quarter of 2003 for this product line grew 13 percent over the previous quarter.

Guided by its strategy as a, "Mobile Electronics Solution" provider, Winbond continues to focus on making product lines more flexible while accelerating the rate of introduction for new products, with marked results in the area of logic and memory products. With respect to memory products, the Company has intensified production of high-end, higher margin DRAM. In March, operating revenue for specialty DRAM and Pseudo SRAM products exceeded Company revenue for commodity DRAM products. In addition, high-end DDR333 and DDR400 products accounted for 50 percent of all of the Company's 256Mb DDR products delivered in the first quarter. As market demand continues to increase, Winbond's flexible production capabilities will allow the Company to enjoy higher profit margins. Additionally, Winbond's low power consumption, high-capacity Pseudo SRAM continues to experience excellent customer acceptance in the cellular phone market. The total shipment in the first quarter had amounted 10,000 wafers and the majority of the products are high-end 64Mb category. As a direct result of the Company's research and development efforts, medium and high-end flash products, in particular the Company's 32Mb WinStack, will sample in the third quarter of 2003. Winbond's ACT1 product, produced using 0.18-micron manufacturing process, is proceeding according to schedule.

With regard to Winbond's logic product group, pilot production of mini-sized camera modules for cellular phone applications, manufactured using multiple chip packaging technology (MCP), has already begun. These chips are targeted primarily for use in 2.5G generation color screen mobile phone markets. The Company's short message system (SMS) telephone products and multi-tasking speech chips continue to yield excellent results. In the personal computer and monitor areas, computer power supply management chips have entered the mass-production stage. These solutions are aimed at providing customers with more comprehensive and secure solutions. With respect to network communications, the Company has increased production of higher demand products aimed at wireless digital telephones meeting both DECT and WDCT specifications as well as wireless data communication applications. 

Looking toward the second quarter, Winbond estimates that expanding multimedia services for the mobile communications market will drive demand. In addition, the growing color multi-function camera and mobile telephone markets will drive additional demand for Pseudo SRAM and Flash products. Although the second quarter is traditionally considered the slow season for information technology products, seasonal demand for consumer speech and microcontroller products is expected to help the Company's operating revenue experience a slight growth.



 
Spokesperson
    Wilson Wen
    Vice President of Administrative Center
    Tel:03-5792755

News Liaison
    Mike Liu
    Deputy Director
    Tel:03-5792516
    Email:ckliu@winbond.com

TOP

Copyright © Winbond All Rights Reserved.

This website uses cookies to ensure you get the best experience on our website. Learn more
OK