Japan's Elpida Memory has reported net losses of JPY8.2 billion (US$101 million) on revenues of JPY92.1 billion for its fiscal fourth quarter ended March 31, 2011, showing a swing from profits of JPY33.7 billion a year ago with revenues slipping 37.6% on year.
On a sequential basis, Elpida's fiscal fourth-quarter net losses narrowed from losses of JPY29.6 billion in the prior quarter. Revenues slid 5.1% from the JPY97.1 billion posted in the fiscal third quarter ended December 31, 2010.
"With PC DRAM market prices softer, Elpida's 4Q DRAM ASP fell 10% on quarter and 49% on year," the company said in a statement. "Bit shipment growth in the quarter was up 6% on quarter and 33% on year, as manufacturing process migration delivered a boost to bit shipment volumes that more than offset the amount volume dropped due to a reduced number of wafer starts since November 2010."
Elpida said it swung to gross profits of JPY7.3 billion in the fourth quarter of the company's fiscal 2010 from losses of JPY7.7 billion in the previous quarter, thanks to reduced manufacturing costs through process transition. But gross profits for the January-March 2011 quarter plunged 86.6% from JPY54.3 billion during the same period of 2010, affected by chip price falls and the yen's appreciation.
Elpida's net profits for the year ended March 31, 2011 decreased 32.1% to JPY2.1 billion. Revenues for its fiscal 2010 grew 10.1% to JPY514.3 billion yen, as a result of 33% bit shipment growth and a 12% decline in ASPs.
"In the 2H a slowdown in PC shipments and hither supply volumes on the back of process migration among DRAM makers quickly led to deterioration of the DRAM supply-demand balance and prices that fell sharply and remained stuck at low leves," Elpida said. Despite that, the company noted that shipments of mobile DRAMs used in smartphones and tablet PCs appeared robust during the period.
Looking forward, Elpida expects its bit shipments to grow by 20-30% sequentially in the first quarter of the company's fiscal 2011. Bit shipments for the full fiscal year are projected climb 50% or more, the company said.
In addition, Elpida said capex for its fiscal 2011 is estimated at JPY80 billion, down from the JPY117.6 billion spent in the prior year.