Winbond Announces the Financial Results For the Second Quarter of 2005

(Taipei News) Winbond Electronics Corporation, a leading supplier of semiconductor solutions, today announced the audited financial results for the second quarter of 2005. Net Sales totaled NT $6.955 billion, an increase of 26 percent when compared with NT $5.509 billion in the first quarter. Gross margin was 16%. Net income after tax was NT $324 million, an obvious improvement versus the first quarter of fiscal 2005 when the Company reported net loss of NT$1.653 billion. Net income per share was NT$ 0.08. For the first half of 2005, the accumulated revenue reached NT$ 12.464 billion, net loss after tax was NT$ 1.329 billion, and net loss per share was NT$ 0.32.

The beneficial result in the second quarter was mainly contributable to the increase in Mobile Memory shipments. In terms of Memory Products, after three-quarter inventory adjustment in Pseudo SRAM, orders started coming back from the end of March. Monthly Shipment of Pseudo SRAM was increased significantly when compared to the first quarter. Furthermore, the Company used 0.13 mm and 0.16 mm technology to reduce the production cost. Shipment of Specialty DRAM also rose. Therefore, Memory Products revenue in the second quarter presented an increase of 27% although softened price of Commodity DRAM was still observed. In the second quarter, the revenue breakdown by products was as follows: Pseudo SRAM and Specialty DRAM 45%, Commodity DRAM 17%, Non-DRAM Memory 4%, and Logic Products comprised 34%.

Revenue of Logic products increased 23% as compared to the first quarter. In terms of Consumer Products, Speech ICs yielded good sales results due to the seasonal demand. As for the Advanced PC Center, notebook and serve I/O ICs began shipping and contributed to the revenue consequently.

As foreseeing the increasing global handset shipment, the Company believes that a steady momentum of Pseudo SRAM could be sustained till the third quarter, so that allocates appropriate capacity to a specified level. Besides, the PC market will enter the traditional hot season. Motherboard related I/O ICs is expected to have obvious growth since the successful staffs transition as well as integration of product lines in APC Center. Increased shipment in TFT LCD Driver ICs will be also expected due to extended customer base. In terms of product development, 1.3M to 3M pixel handset DSC Backend IC with MPEG4 function is in the design-in stage. As a whole, the operating performance in the third quarter is expected to be optimistic. 


    Wilson Wen
    Vice President of Administrative Center

News Liaison
    Mike Liu
    Deputy Director

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