Adata expects favorable DRAM prices for 2013

Josephine Lien, Taipei; Jessie Shen, DIGITIMES [Wednesday 6 February 2013]

The DRAM industry is set to become more consolidated in 2013 with solid fundamentals, which will help decrease the imbalance between supply and demand, according to memory module maker Adata Technology.

DRAM prices are expected to show strengthen in 2013, with the trend more favorable than that in 2012, said Adata.

As for NAND flash, prices are also set to be less volatile in 2013 than in 2012, Adata indicated. With more stable chip prices, Adata will improve further its profitability this year, the firm added.

Adata managed to remain profitable in 2012, when DRAM and NAND flash prices were more volatile. Adjusting the company's product mix, and making accurate procurement and inventory decisions allowed it to generate profits in the year, Adata noted.

Adata reported consolidated revenues of NT$2.65 billion (US$89.8 million) for January 2013, up 1.4% sequentially and 33.1% on year. Prices for both DRAM and NAND flash chips have stop falling and begun to rise, which led to Adata's positive sales performance during the month, the firm indicated.

DRAM modules accounted for 53.86% of Adata's overall sales in January, while NAND flash devices and other products made up the remainder.

Adata: Revenues, Dec 2011 - Dec 2012 (NT$m)
Month	Sales	M/M	Y/Y	YTD	Y/Y
Dec-12	2,512	14.8%	(9.3%)	27,975	(6.5%)
Nov-12	2,189	(3.6%)	(20.2%)	25,463	(6.2%)
Oct-12	2,272	(4.1%)	(13.9%)	23,274	(4.6%)
Sep-12	2,368	12.7%	(9.4%)	21,002	(3.5%)
Aug-12	2,101	(15%)	(14.8%)	18,634	(2.7%)
Jul-12	2,470	3%	15.1%	16,533	(3.6%)
Jun-12	2,399	2.4%	13%	14,185	(5.5%)
May-12	2,342	5.2%	(0.3%)	11,786	(8.5%)
Apr-12	2,226	(16.3%)	(12.2%)	9,444	(10.3%)
Mar-12	2,659	8.7%	(15.3%)	7,218	(9.8%)
Feb-12	2,446	15.8%	18.9%	4,559	(6.2%)
Jan-12	2,113	(23.8%)	(24.7%)	2,113	(24.7%)
Dec-11	2,771	1%	(9.9%)	29,918	(27.5%)

*Figures are not consolidated
Source: TSE, compiled by Digitimes, February 2013