Winbond Announces the Financial Results for the First Quarter of 2009

(Taipei News) Winbond Electronics Corporation today announced the results of audited financial statements for the first quarter of 2009 which has been approved by the Board of Directors in the meeting held on April 28th, 2009. Net sales totaled NT$3.13 billion, approximately down 17% compared with NT$3.778 billion of the fourth quarter in 2008. Net loss after tax was NT$5.218 billion. Net loss per share was NT$1.43. The 1Q09 business suffered a decrease quarter over quarter because of the weakening ASP of Commodity DRAM, loss on disposal of investment, and inventory write-down loss caused by Qimonda’s insolvency filing.

As the demand-supply imbalance in the semiconductor industry and global economic recession remain in the first quarter, most firms tend to adopt more conservative operating strategy. With regard to Winbond, investment loss was approximately NT$1.35 billion which came from disposal of non-operating assets, used in operating activities. Besides, loss from inventory write-down resulted from Qimonda’s insolvency filing and the uncompleted direct sales channel of the first quarter.

In the first quarter, shipments in terms of Mobile RAM slightly dropped due to customer’s inventory adjustment. Rush orders from China consumer market lifted shipments of Specialty DRAM. Flash IC business enjoyed a positive growth attributable to the expansion in ODD, LCD TV and Networking markets.

Facing the impact as Qimonda AG filed for insolvency, Winbond makes utmost efforts to establish direct sales channels. It is expected that Commodity DRAM revenue would return to normal in the second quarter, though shipments showed an obvious decrease quarter over quarter.

As for revenue breakdown in the first of 2009, Specialty DRAM and Mobile RAM approximately amounted to 60% of net sales. NOR Flash and Commodity DRAM approximately occupied 20% of net sales respectively. In the future, Winbond will continue to develop niche products with higher gross margins to achieve to a better result.

Looking forward to the second quarter, a positive growth in Specialty DRAM and NOR Flash businesses driving by the strong demand in China consumer market is expected. As 90nm NOR Flash has started mass production in the 300mm wafer fab and Commodity DRAM cost will continue being improved by 65nm technology production as well, Winbond will hold a cautious and optimistic outlook.


    Wilson Wen
    Executive Vice President of Memory IC Manufacturing Business Group 

News Liaison
    Mike Liu
    Deputy Director

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