Nanya Technology is likely to remain unprofitable in the second quarter of 2011, which would mark the sixth straight quarterly loss for the DRAM manufacturer, according to market sources. Inotera Memories, Nanya's DRAM-manufacturing joint venture with Micron Technology, will also post net losses for the quarter, the sources said.
Nanya's and Inotera's losses for the second quarter, however, are expected to narrow from those registered in the prior quarter, the sources indicated. The two firms have been devoting efforts to products targeted at mobile computer and server applications, in order to mitigate the impact of stagnant conventional PC sales, the sources observed.
Both Nanya and Inotera have also been upgrading their technology to lower production costs, which helped improved losses in the second quarter, the sources said.
Nanya has reported NT$11.47 billion (US$396 million) in revenues for the second quarter, up 6.8% sequentially. Meanwhile, Inotera's second-quarter revenues grew 5.9% on quarter to NT$10.16 billion.
Nanya and Inotera are scheduled to hold investors meetings tomorrow (July 19) to review their performance for the second quarter, and provide business outlook for the second half of 2011.