Winbond Announces the Financial Results for the Second Quarter of 2008

(Taipei News) Winbond Electronics Corporation today announced the results of audited financial statements for the second quarter of 2008 which has been approved by the Board of Directors in the meeting held on August 1st, 2008. Net sales totaled NT $6.416 billion. Net loss after tax was NT$1.278 billion. Net loss per share was NT$0.34, an improvement compared to the loss of the first quarter in 2008. The accumulated revenue of first-half of this year was NT$12.984 billion. Net loss after tax was NT$3.036 billion. Net loss per share was NT$ 0.82.

As the pushing oil price and inflation caused the global recession, the demands in PC and handset markets decreased in the second quarter. In order to curb the loss resulting from the uncertainty of macroeconomic environment, the process migration has been driven energetically to improve the cost structure by the Company. Besides, the Commodity DRAM ASP has staged a sustainable recovery. Net loss per share of the second quarter was improved when compared to the previous quarter. Gross profit as well as gross margin, meanwhile, also turned positive in the second quarter.

As for the other Memory products, Mobile RAM performed in line with expectation. Revenue of Specialty DRAM decreased due to the slow demands in consumer market and price competition; however, the gross margin was higher than the first quarter in 2008 as the process migration has been driven continually. In mention of NOR Flash, price pressure remained but technology migration contributed to the shares in the second quarter.

In terms of Logic products, Intel’s delayed launch in new platform led a steady performance of Computer Logic products. As the global recession hurt the demands in consumer market and further, the nature disasters in China and restraints for import and export during the Beijing Olympic Games also caused the reduction of consumer market spending, the growth of Consumer Logic products was limited in the second quarter.

Since the global economic recover is still unclear, the company has a conservative outlook on the third quarter. Winbond regular shareholders’ meeting has approved the carve-out of its Logic IC Business, and established a wholly owned subsidiary of Winbond on July 1st, dubbed Nuvoton Technology Corporation. With the specialization and division of labors, Winbond and Nuvoton will concentrate on Memory and Logic business respectively in the future.


    Wilson Wen
    Executive Vice President of Memory IC Manufacturing Business Group 

News Liaison
    Mike Liu
    Deputy Director

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