Winbond Electronics Announces Financial Results of the Second Quarter

(Taipei News) Winbond Electronics Corporation, a leading supplier of semiconductor solutions, today announced the results of the audited financial statements for the second quarter of 2006 approved by its Board meeting in the August 4, 2006. Net sales totaled NT $7.797 billion. Net loss after tax was NT$117 million; net loss per share was NT$0.03. The accumulated revenue of first-half of this year was NT$14 billion and 3 million, net income after tax was NT$7 million, EPS is slightly positive.

The 12-inch fab entering its mass production stage leaded to the growth of the revenue of the second quarter. The revenue of the second quarter posted a 26% increase when compared to NT$6.2 billion and 6 million of the first quarter. The gross profit of the second quarter was NT$1.658 billion and the operating profit was NT$210 million. However, with the inventory adjustment and a non-operating loss, the second quarter posted a slight net loss which leads to the net income of NT$7 million for the first-half of this year when combined with the net income of NT$124 million of the first quarter. In terms of Logic Products, a softness PC end market demand led to customers' higher inventory levels and the slowdown of shipment of PC Logic IC Products. Revenue increased in Speech ICs and Mobile Handset backend ICs due to the high season effect. The revenue of Chip Coder and mC-based Consumer ICs also grew. As a whole, the Logic Products was in a stable growth trend.

In terms of Memory Products, due to the diminishing demand for Mobile Memory, the revenue reduced. Under the severe market competition, the revenue for Specialty DRAM only slightly grew even though the shipment increased. In terms of Commodity DRAM, the new version of operating system soon to be released will increase the use of memory for PC which is expected to facilitate the demands of DRAM Products.

Looking forward to the third quarter, as Consumer Logic ICs enter its peak season, the revenue expects to grow stably, but the growth trend of Memory Products is expected to be slower than the forecast. In terms of Specialty DRAM, we foresee a larger shipment and better margins in the third quarter. In addition, as the 12-inch fab enters the mass production stage, the overall revenue will constantly grow with the increase of volume capacity.


    Wilson Wen
    Vice President of Administrative Center

News Liaison
    Mike Liu
    Deputy Director

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