Adata, Silicon Power 2Q12 profits slip on quarter

Josephine Lien, Taipei; Jessie Shen,30 August 2012
Memory module firms Adata Technology and Silicon Power Computer & Communications both saw their second-quarter net profits decrease sequentially.

Adata has announced that net profits for the second quarter of 2012 declined 43% on quarter to NT$164 million (US$5.5 million). EPS for the quarter came to NT$0.78.

Adata generated consolidated revenues of NT$6.83 billion in the second quarter, down 3.5% sequentially. Gross margin for the quarter slid 2.43pp to 7.15% during the same period.

Compared to a year ago, the gross margin for second-quarter 2012 climbed almost 3pp. Meanwhile, Adata swung to profitability from losses reported for the same quarter in 2011.

Adata indicated that sequential falls in revenues and profits were caused by seasonal factors as well as falling prices for NAND flash memory. Adata is pursuing stable profit growth for 2012 with measures to avoid the price volatility of the memory market.

Adata collected net profits of NT$454 million in the first half of 2012, compared to losses of NT$14.7 million a year earlier. The earnings netted in first-half 2012 translated into an EPS of NT$2.15.

Silicon Power posted net profits of NT$48.78 million in the second quarter, down 7.1% on quarter. However, net profits for the first half of 2012 were NT$101 million, up 31% from a year ago.