Winbond Electronics Corporation Announces 2003 Year-End Financial Results The semiconductor industry is recovering; Winbond expects improved performance in 2004

(Taipei News) Winbond Electronics Corporation today announced the results of today's board meeting. The Company Board of Directors reviewed and approved the 2003 Financial Report, which has also been formally audited by the Company's CPA. Winbond's 2003 annual revenue was NT $29.549 billion. This reflects a decrease of 8 percent, when compared to the Company's 2002 annual revenue of NT $32.089 billion. Winbond's 2003 total loss, after tax, was NT $1.113 billion. Net loss per share was NT $0.26, which showed a relatively lesser loss than the past two years.

The semiconductor industry is steadily recovering from the 2003 downturn. Winbond's drive to transform itself by focusing on its core competencies, combined with the increased demand of end-user electronics products has contributed to the Company's improved profitability in the third quarter of 2003. This was due to the acceleration of market demand for mobile devices, PCs and DSCs (digital still camera), which led to increased shipments of niche DRAMs and Pseudo SRAMs. The increase in revenue of motherboard-related products also contributed to the operating performance. Therefore, annual revenue for 2003 dropped only 8% compared to the Company's 2002 annual revenue. 

Winbond's net sales totaled NT $8.25 billion in the fourth quarter of 2003. The Company's financial performance only decreased by 1 percent over the previous quarter. The gross profit increased to NT $1.805 billion; with a net profit totaling NT $211 million. Net profit per share was NT $0.05. Winbond's lower fourth quarter revenues were mainly due to the falling of average sales price (ASP) of 256 Mb DRAMs and the shrinkage of seasonal demand for consumer IC products. However, the price and volume in niche DRAM and Pseudo SRAM remained stable, and revenue of motherboard-related IC products increased. The growing demand for TFT-LCDs stimulated the increase in driver IC shipments. Similarly, the demand for DSC (digital still camera) micro controller ICs also increased. In summary, product breakdown in terms of revenue for the fourth quarter was: DRAM (Commodity + Specialty + Psuedo SRAM) 63 percent, Non-DRAM Memory 8 percent, and Logic products 29 percent.

In the past year, Winbond has showed significant progress in fulfilling explicit goals. In terms of memory products, standard DRAM products were phased out and replaced with specialty DRAM products, as the target market. Since the second quarter of 2003, revenue from niche DRAM and Pseudo SRAM products has exceeded that of standard DRAMs. With regards to logic products, the DSC controller IC products not only increased in shipment, but also received approval from worldwide first-tier companies. The company was awarded several new design-ins from different customers. Furthermore, the motherboard flash IC product line is expected to continue to gain market share, with plans to debut the 32 Mb NOR Flash by using Win Stack technology in the high-density product market soon. Mass production is scheduled for the first quarter of 2004. 

Looking forward to 2004, the Company will continue to focus on its core competencies. By mitigating some of the risk associated with more volatile products, the company has been able to show significant progress in cost control while still developing new products. In order to faithfully pursue the goals of producing mobile communications solutions, Winbond will fully utilize its R&D resources and mass production advantages, in both logic and memory products, to serve the clients. In response to the resuscitation of the semiconductor industry, Winbond estimates that the corporation will experience overall improved performance in the coming year.

    Wilson Wen
    Vice President of Administrative Center

News Liaison
    Mike Liu
    Deputy Director

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