Memory module firm Transcend Information has reported net profits for the first quarter of 2017 declined 7.9% on year to NT$574 million (US$19 million). During the quarter, the company suffered foreign exchange transaction losses of NT$570 million, which hurt its profitability.

Transcend posted consolidated revenues of NT$5.69 billion in the first quarter of 2017, up 0.7% on year, while gross margin climbed 6.2pp from a year earlier to 28.4%.

Transcend expects to benefit from rising contract prices of memory chips in the second quarter of 2017. Prices are likely to see correction in the second half of the year as chip suppliers increase their output, said the memory module maker. Transcend added the company will stay focused on niche-market applications for higher profits.