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Winbond Announces the Financial Results for the First Quarter of 2008

(Taipei News) Winbond Electronics Corporation today announced the results of audited financial statements for the first quarter of 2008 which has been approved by the Board of Directors in the meeting held on April 29th, 2008. Net sales totaled NT $6.569 billion. The soft DRAM price caused that net loss after tax was NT$1.759 billion and net loss per share was NT$0.48. However, as a whole, there was an obvious improvement compared to the loss of the fourth quarter in 2007.

Facing the soft DRAM price and seasonal effects which resulted in both decreased handset and PC shipments of the first quarter, Winbond continued adjusting its business strategy to correspond to the market changes and stay in the best status in the industry for long-term sake. In terms of Logic products, the revenue of the first quarter was in line with the expectation. The earlier shipments contributed to the steady performance of Computer Logic products during the normal slow season. The seasonal slowdown hurt the shipments of Consumer Logic product in comparison with last quarter. However, with the suitable product mix strategy, the overall gross margin of Logic products was improved than pervious quarter.     

As for Memory products, although the ASP of Commodity DRAM was still lower, Winbond gradually moved forward to increase its branded products production and migrate technology to reduce the pressure of lower price. In mention of Mobile RAM, the revenue grew benefiting from the stronger demands in low density market. The price competition led to a bad effect on Specialty DRAM. The shipment of NOR Flash decreased in this quarter; however, the gross margin was higher than the forth quarter in 2007 as the process migration had been driven energetically to improve the cost structure.

Looking forward to the second quarter of 2008, the Consumer Logic products are approaching the traditional hot season so that the thriving market demand will be expected. Meanwhile, in order to enhance the competitiveness, the technology migration will be processed as planned. The mass production of 75nm migration is on scheduled, which will achieve the scale of ten thousand wafers in June and twenty thousands in September. Furthermore, Winbond has announced signing a new agreement with Qimonda AG for 65nm Buried Wordline DRAM technology transfer recently and planning to enter the pilot-run stage in 300mm fab at the end of 2008. This will also reinforce Winbond’s Mobile Memory Solutions in the future.

 



Spokesperson
    Wilson Wen
    Vice President of Administrative Center
    Tel:03-5792755

News Liaison
    Mike Liu
    Deputy Director
    Tel:0966-233360
    Email:ckliu@winbond.com

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