Winbond Announces the Financial Results for the Third Quarter of 2013

Hsinchu, Taiwan, Oct. 24, 2013- Winbond Electronics Corporation today announced the financial results for the third quarter of 2013. On a consolidated basis including members of Winbond Electronics Corp. and Nuvoton Technology Corp. etc., net sales were NT$8.309 billion, down 6% QoQ. Gross margin was 22%. Net income for the third quarter was NT$ 137 million; earning per share was NT$0.04. Consolidated revenues for January through September 2013 totaled NT$24.830 billion; net income was NT$216 million. 
 
To break down by business line, 48% of the 3Q revenue was from Specialty DRAM, 41% from NOR Flash and 11% from Mobile RAM. The QoQ decline in 3Q of NOR Flash revenue was due to weak demand in PC and mobile phones.  58nm products accounted for 46% of Flash Sales which will enhance cost competitiveness . We continued to fulfill customer needs and will launch 512Mb and 1Gb code storage Flash products in 4Q.
 
In terms of Specialty DRAM, Specialty DRAM revenues dropped by 2% QoQ. Overall demand was not as good as expected.  We continued to increase sales of KGD products and endeavoring into industrial and automotive markets. 46nm products accounted for 42% of the Specialty DRAM sales.  The gross profit margin of Specialty DRAM improved through better product mix in 3Q.
 
Sales of Mobile RAM slowed down due to weak demand of feature phone. The contribution of Low-Power DRAM to the Mobile RAM line increased from the 55% in the previous quarter to 61%.
 
For the fourth quarter, regardless the weak end market demand, Winbond’s complete product portfolio will be able to respond to the rapidly changing industry.

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