Memory module firm Transcend Information has reported net profit of NT$479 million (US$16 million) for the first quarter of 2018, down 19.6% sequentially and 16.6% on year. EPS for the quarter came to NT$1.11.

Falling NAND flash prices, as well as currency exchange losses, led to the net profit decrease in the first quarter, the company said.

Transcend expects NAND flash prices to remain under downward pressure in the second quarter due to oversupply. The pressure should be eased in the second half of 2018, the memory module maker said.

As for DRAM, the memory contract prices for the second quarter should remain high, Transcend continued. The company also expects stability in currency exchange rates in the second quarter.

Industrial control devices accounted for 46.9% of Transcend's total first-quarter revenues, followed by strategic products with 21.8%, consumer flash devices 17.8% and standard DRAM products 13.5%, the company disclosed.

Transcend saw its gross margin drop to one-year low of 22.2% in the first quarter of 2018. Falling NAND flash prices dragged down the company's operating profits in the first quarter, while the NT dollar appreciation resulted in currency exchange losses.

In addition, Transcend's board of directors has approved plans to distribute a cash dividend per share of NT$6 for 2017, when the company posted net profits of NT$2.66 billion or NT$6.17 a share on revenues of NT$21 billion.