Nanya, Inotera to post another quarter of losses

Josephine Lien, Taipei; Jessie Shen, DIGITIMES [Monday 18 July 2011]

Nanya Technology is likely to remain unprofitable in the second quarter of 2011, which would mark the sixth straight quarterly loss for the DRAM manufacturer, according to market sources. Inotera Memories, Nanya's DRAM-manufacturing joint venture with Micron Technology, will also post net losses for the quarter, the sources said.

Nanya's and Inotera's losses for the second quarter, however, are expected to narrow from those registered in the prior quarter, the sources indicated. The two firms have been devoting efforts to products targeted at mobile computer and server applications, in order to mitigate the impact of stagnant conventional PC sales, the sources observed.

Both Nanya and Inotera have also been upgrading their technology to lower production costs, which helped improved losses in the second quarter, the sources said.

Nanya has reported NT$11.47 billion (US$396 million) in revenues for the second quarter, up 6.8% sequentially. Meanwhile, Inotera's second-quarter revenues grew 5.9% on quarter to NT$10.16 billion.

Nanya and Inotera are scheduled to hold investors meetings tomorrow (July 19) to review their performance for the second quarter, and provide business outlook for the second half of 2011.

Inotera, a DRAM-manufacturing JV between Micron and Nanya
Photo: Digitimes file photo

Inotera, Nanya: Revenues, 1Q10 - 1Q11 (NT$m)
Quarter	Nanya		Inotera
	Sales	Y/Y	Sales	Y/Y
1Q-11	10,732	(24%)	9,586	(16.8%)
4Q-10	11,790	(29.4%)	8,715	(31.6%)
3Q-10	14,916	29.6%	9,963	4.4%
2Q-10	15,718	94.4%	11,258	50.9%
1Q-10	14,121	128.8%	11,518	81.2%

*Figures are not consolidated
 

Source: TSE, compiled by Digitimes, July 2011

Inotera, Nanya: Balance sheet, 1Q11 (NT$k)
Item	Nanya	Inotera
Current assets	24,952,478	23,504,826
Intangible assets	2,542,276	542,566
Other assets	6,015,222	2,407,676
Assets	128,505,862	143,905,433
Current liabilities	66,908,434	50,386,980
Other liabilities	734,803	17,918
Liabilities	104,925,019	94,610,796
Stockholders' equity	23,580,843	49,294,637

*Figures are not consolidated
 

Source: TSE, compiled by Digitimes, July 2011

Inotera, Nanya: Income statement, 1Q11 (NT$k)
Item	Nanya	Inotera
Gross sales	10,731,577	9,588,105
Operating revenue	10,731,577	9,586,055
Gross profit (loss) from operations	-5,231,763	-3,424,800
Operating expenses	2,402,987	348,321
Operating income (loss)	-7,639,066	-3,773,121
Non-operating revenues and gains	338,906	125,270
Income from continuing operations before income tax	-9,030,751	-4,044,230
Net income (loss)	-9,030,751	-4,044,230

*Figures are not consolidated
 

Source: TSE, compiled by Digitimes, July 2011