Transcend only profitable major Taiwan memory module maker in 1H08
A review of major memory module makers’ financial results for the first half of 2008 show that Transcend Information was the only profit maker to show a relative strong margin in the period, wits rivals seeing their gross margin shrink to low single digit percentages. Among all major memory module makers in Taiwan, only Transcend managed to have profit in the first half of the year. Its major rival A-Data Technology, as well as other competitors, posted losses in the period.
The NT$318 million losses at Kingmax Technology is about equivalent to its capital size of NT$382 million. Due to a rapid price drop of NAND flash prices in the first half of the year and weaker-than-expected demand for NAND flash-powered applications, Kingmax had an inventory write-off of NT$74.6 million in the period. Whether a profit is possible in the second half of the year still depends much on ongoing NAND flash pricing, the company said.
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