Winbond Announces the Financial Results for the Second Quarter of 2009

(Taipei News) Winbond Electronics Corporation today announced the results of audited financial statements for the second quarter of 2009 which has been approved by the Board of Directors in the meeting held on August 4, 2009. Net sales totaled NT $4.2 billion, an increase of approximately 34 percent when compared with NT $3.13 billion in the previous quarter. Net loss after tax was NT$2.75 billion. Net loss per share was NT$0.76, an improvement compared to the loss of the first quarter in 2009. The accumulated revenue of first-half of this year was NT$7.33 billion. Net loss after tax was NT$7.97 billion. Net loss per share was NT$ 2.19.

As a result of better market demands, increasing shipments in most product segments and higher utilization rates, second quarter saw an improvement from the previous quarter. Supported by continuous efforts to shrink technology and reduce cost, meanwhile, the Company reported a positive net cash flow from operating activities in the second quarter, fully demonstrating that Winbond has been moving toward a recovery in the downturn and strengthening its operating and financial structures.

In the second quarter, revenue of Specialty DRAM boosted 26% QoQ attributable to the rising demands in LCD TV, Set Top Box (STB) and networking markets. As to NOR Flash, revenue grew 30% QoQ in line with expectation. After completing the direct sales channel in the first quarter of 2009, Commodity DRAM business went back to a normal state. With regard to Mobile RAM, shipments went down due to customer’s inventory adjustment. As for revenue breakdown in the second quarter of 2009, Specialty DRAM, NOR Flash and Mobile RAM approximately amounted to 70% of net sales. The ratio of niche Memory products will continuously increase in accordance with the Company’s strategy to shrink commodity DRAM business.

Looking forward to the third quarter, a positive growth in Mobile RAM business will be expected owing to rising demands from major customers and aggressive 90nm technology migration. Besides, the Company holds an optimistic outlook on Mobile RAM business in Y2010 as the growth in the global MCP markets is expected. In terms of Specialty DRAM segment, shipments will keep growing driven by efforts of penetration in LCD TV, STB, networking and HDD markets. With better product mix, gross margin will also be improved continually.

As for NOR Flash segment, shipments will be expected to grow sequentially in the third quarter thanks to the blooming HDD, LCD TV and ODD markets. By the end of the third quarter in 2009, 90nm production will account for approximately 25% of shipment and 100% in the middle of Y2010. The Company will continually develop new products to meet the demands of portable electronics markets.


    Wilson Wen
    Executive Vice President of Memory IC Manufacturing Business Group 

News Liaison
    Mike Liu
    Deputy Director

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