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Winbond Announces the Financial Results for the Third Quarter of 2008

(Taipei News) Winbond Electronics Corporation today announced the results of audited financial statements for the third quarter of 2008 which has been approved by the Board of Directors in the meeting held on October 28, 2008. Net sales totaled NT $5.066 billion. Net loss after tax was NT$ 891 Million. Net loss per share was NT$0.25, a continuous improvement compared to the loss of the second quarter in 2008. The accumulated revenue from January to September of this year was NT$18.05 billion. Net loss after tax was NT$3.927 billion. Net loss per share was NT$ 1.07.

Revenue decreased QoQ as the Company spun off Logic IC Business into Nuvoton Technology on July 1st. However, while deducting Logic business from the revenue of the second quarter, revenue increased QoQ and gross margin improved continually. Under the weakening macroeconomic environment, global PC shipments had a limited growth and the replacement cycle for mobile handsets turned longer in the third quarter. Winbond strove to shrink technology, adjust its production capacity, and reduce Commodity DRAM production to curb the loss from the economic depression.

In terms of Mobile RAM, revenue declined due to the slow demands in the end market. Thanks to economies of scale at the 300mm wafer fab and smooth transition in 90nm technology, Specialty DRAM had higher revenue and gross margin when compared to the second quarter. NOR Flash performed steadily in the third quarter.

Looking forward to the fourth quarter, Winbond will adopt cautious approach to riding out finical storm. The buried wordline DRAM technology on 65nm is scheduled to introduce to the 300mm wafer fab in the end of 2008 and ramp up in the second quarter next year. Driven by attempts to utilize resources effectively, the operations and production management performances will be continually improved. Furthermore, the Company will remain its aggressive attitude toward new products and new technology developments to move forward with the optimum competitiveness.


Spokesperson
    Wilson Wen
    Executive Vice President of Memory IC Manufacturing Business Group 
    Tel:03-5792755

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

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