Taiwan-based DRAM module houses A-Data Technology, Power Quotient International (PQI), Unifosa and Panram International are all expected to swing back to profitability in 2009, according to market watchers. Transcend Information, which was profitable in 2008, will also manage significant profit growth this year.
Both Transcend and A-Data are likely to report net profits equivalent to their paid-in capital in 2009, the watchers said.
The watchers believe that the presence of fewer chipmakers in the market following Qimonda's exit has helped restore supply/demand balance, and DRAM chip prices have rebounded from the lowest level since early 2009. Consequently, module suppliers have seen significant gains from the increased value of their inventory.
Transcend generated net profits of NT$2.96 billion (US$92 million) on revenues of NT$24.44 billion in the first three quarters of 2009, while in the same period last year it recorded NT$25.32 billion in revenues and NT$1.62 billion in profits. Its January-September EPS increased to NT$7.11 in 2009 from NT$3.92 in 2008.
A-Data, which began seeing profits in first-quarter 2009 following two consecutive quarterly losses, reported net profits of NT$1.43 billion for the first three quarters of 2009 compared to losses of NT$1.18 billion for the same period of 2008. EPS for the nine-month period reached NT$7.31 in 2009.
PQI swung to net profits of NT$701 million in the first three quarters of 2009 from last year's losses of NT$283 million, thanks to a rebound in both DRAM and NAND flash chip prices. Meanwhile, Unifosa also generated profits compared with losses of NT$95 million in the first three quarters of 2008.
Panram, which reportedly landed outsourcing orders from Kingston Technology earlier in second half of 2009, may return to profitability this year, the market watchers said. The company remained unprofitable during the first three quarters of 2009 with a negative EPS of NT$0.78.