Winbond Electronics Corporation Announces Financial Results For The First Three Quarters of 2004

(Taipei News) Winbond Electronics Corporation, a leading supplier of semiconductor solutions, today announced the audited financial results for the third quarter of 2004. Net sales totaled NT$ 7.506 billion, operating profit NT$1.060 billion, income after tax totaled NT$ 855 million and net income per share was NT$ 0.2. This represents an 18% decrease versus the second quarter of fiscal 2004, when the Company reported net sales of NT$ 9.124 billion. The accumulated revenue of January to September 2004 totaled approximately NT$ 24.610 billion, income after tax was NT$ 3.312 billion, and net income per share was NT$ 0.78.

With regards to the DRAM business, DRAM sales went down mainly due to the disappointing revenue from Specialty DRAMs in both volume and ASP. As for Logic product business, the Consumer products sector continued to demonstrate stable revenue results. However, the mC-based consumer IC in particular showed a slight decline when compared to a relatively strong performance in the previous quarter. Also, the softening LCD panel industry caused the driver IC business to remain flat in the third quarter. By and large, lower revenue in the third quarter was due to slow movements in the consumer electronics and communications product market, as well as the ASP drop from intense competition. 

Looking forward to the fourth quarter, a portion of the memory production capacity will be allocated to produce Commodity DRAMs to fulfill Infineon's requirements. Also, the overall sales of DRAM products is not expected to grow too significantly despite customers adjusting their PSRAM inventory to a more desirable level, and Specialty DRAM shipments expected to return to the level it reached in the first half of the year. However, the Company has launched several new mC-based consumer ICs to the market, such as the 1.3M to 2.1M pixel handset Digital Still Camera backend ICs with MPEG4, auto-focus, and zoom-in/zoom-out embedded functions, and the 40- to 60-channel polyphonic ringing tone chips. Also, motherboard related ICs continue to gain global market share, therefore, the Company is expected to sustain a steady performance in Logic products in the fourth quarter. 

    Wilson Wen
    Vice President of Administrative Center
News Liaison
    Mike Liu
    Deputy Director

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