A-Data 4Q profits slashed by over 60% on quarter
The nosedive of NAND flash pricing in the fourth quarter of 2006 has led memory module maker A-Data Technology to record that its quarterly profit slashed by over 60% on quarter. A-Data records its gross margins reduced to below 5% in the fourth quarter 2006 from above 8% in the third quarter. Net profits (pre-tax un-audited) at NT$304 million (US$9.2 million), represented a sharp fall of 67% on quarter. Quarterly revenues totaled at NT$14.6 billion, representing a 8.6% on year growth.
Projecting its sales in January 2007, A-Data said a further 20% sequential drop should be seen due to traditional seasonality and the persistent price pressure for both DRAM and NAND flash. For the whole first quarter, A-Data said it expects to see some chip makers introduce price protection schemes to stop the downward price trend and this should help hold the company’s quarterly revenues firm.
Despite having a sluggish fourth quarter result, A-Data’s full year revenues still enjoyed a 38% on year leap to NT$44.1 billion with net profits amounting to NT$1.6 billion, representing a 26.7% on year growth. Earnings per share (EPS) for the whole year were NT$11.91..
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