Winbond Announces the Financial Results for the second Quarter of 2013

Hsinchu, Taiwan, Aug. 2, 2013- Winbond Electronics Corporation today announced the financial results for the second quarter of 2013. On a consolidated basis, net sales were NT$8.846 billion, up 15% QoQ. Gross margin was 23%, an increase from 16% in the previous quarter. Net income for the second quarter were NT$ 416 million; earning per share was NT$0.1. Consolidated revenues for January through Jun 2013 totaled NT$16.521 billion; net income were NT$79 million.

In the second quarter of 2013, better mix in products and customers improved ASP and generated higher gross margin. To break down revenue by 3C applications, communication accounted for 40%, consumer 27%, and computer 29% of total revenue. The balanced business in 3C applications, coupled with business in automotive acceleration, will keep the Company to stay at stable earnings.

In terms of NOR Flash business, 58nm products sales reached 30% growth QoQ and took 37% of Flash revenue, when compared to 33% in the first quarter of 2013. NOR Flash business grew in the second quarter due to increased demands in handheld device, HDD, and other PC peripheral device.

As for DRAM business, the Company’s Low power DRAM contributed 55% of Mobile RAM revenue during the quarter, with a growing tendency in both brand-name and peripheral modules of handheld devices. Specialty DRAM posted healthy improvements in ASP and gross margin, and increased shipments in HDD, Networking, TV and printer applications. In addition, 46nm products made up 35% of Specialty DRAM sales. Driven by advanced technology migration and focus on value-added market including KGD, industrial and automotive segments, gross margin demonstrated a positive growth in the second quarter.

Looking forward to the market demand, the trend will shift to low-price smart phones and tablets. It is expected that LCD TV market will turn soft; integral market of DT, NB and tablets will continue to grow. Besides, increasing opportunities in peripheral modules will further enhance the features of electronic devices. Coverage in both high-end and low-price but feature rich electronic products is the key to keep stable business in the future.

 

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