Winbond Announces the Financial Results For the First Quarter of 2006

(Taipei News) Winbond Electronics Corporation, a leading supplier of semiconductor solutions, today announced the results of its Board of Directors meeting held on April 28, 2006. The Company approved audited financial statements for the first quarter of 2006. Net sales totaled NT $6.206 billion. Net income after tax was NT$124 million; net income per share was NT$0.03, a large improvement from last quarter.

Winbond noted that the handsets were concentrated mostly in the low-end segment targeted for developing countries particularly in China and India. Demand for high-end handsets grew at a modest rate. Affected by seasonality, the demand of PC in the first quarter remained low. Due to applying strategy properly, the gross profits displayed increase compare to the previous quarter, and operating profit also rose sequentially. In addition, disposal of Driver IC business to Cheertek Technology Inc. resulted in slight benefit of non-operating income.

In terms of Logic Business, the revenue of Logic Products in the first quarter is in-line with target. The mC-based consumer IC market showing signs of warming up in March and this trend should continue in to the next quarter. The revenue of PC Logic I/O products was also benefit from complete back-end transition and cost savings after acquisition of APC from National Semiconductor. 

For the Memory Business, Mobile RAM products, including Pseudo SRAM and LPSDRAM with low-density products in hot demands continue to be the core product line contributing 1/3 of the CompanyĄŚs overall revenue. Besides, Specialty DRAM is unable to fully fill order due to fab cycle-time though the demand is strong. 

The 12-inch fab has entered the mass production stage in April and migrates to 90 nm technologies sequentially to meet the demands of product development. The total wafer capacity will reach 24,000 wafers per month by the end of this year. The current major products to be manufactured are DDR2 and will be focus on Specialty DRAM and Pseudo SRAM in the future. Winbond will be able to reap the benefits from the synergy achieved amongst the different product lines and hence the overall financial performance is expected to be obviously elevated. 

Looking forward to the second quarter, PC will remain in low season but outlook of the year is good. The consumer IC market starts to warm up especially for speech and micro-controller products.


    Wilson Wen
    Vice President of Administrative Center

News Liaison
    Mike Liu
    Deputy Director

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