Macronix International, a manufacturer of mask ROM and NOR flash memory, has announced that net profits for 2011 declined 63% to NT$2.72 billion (NT$99.1 million). Revenues for the year were NT$27.84 billion, up 1%.
For the fourth quarter, Macronix reported net profits of NT$981 million on revenues of NT$8.41 billion. Both earnings and revenue figures showed growth from the prior quarter when it generated NT$359 million in profits and NT$6.55 billion in sales.
Macronix indicated that fourth-quarter sales beat its guidance thanks to strong demand for ROM products. Operating margin and utilization rate for the fourth quarter were both in line with its previous estimates while gross margin slightly missed due to rising manufacturing expenses, the company said.
Macronix revealed that in the fourth quarter, ROM products accounted for 51% of company revenues followed by NOR flash with 44%. Sales of its ROM chips in the fourth quarter of 2011 were 118% higher than the prior quarter's levels, with unit shipments up 12% sequentially.
Macronix' flash sales, however, slid 10% on quarter in the fourth quarter as a result of fewer shipments and ASP falls. Meanwhile, Macronix' foundry business group contributed 5% to company revenues in the fourth quarter, down from 8% in the previous quarter and 10% a year earlier.
In addition, Macronix disclosed that ROM products made using 65nm process technology accounted for 82% of the business sales in the fourth quarter, compared to 51% in the third quarter and 36% in fourth-quarter 2010. The company added products built using a newer 45nm node process are now in mass production.
Meanwhile, its flash products built using 0.11-micron and below processes accounted for 86% to the business in the fourth quarter, with the ratio for 75nm-made products reaching 1%, Macronix indicated.
Macronix estimated that revenues will decrease dramatically on quarter to NT$5.2-5.8 billion in the first quarter of 2012, when its overall utilization rate slides to less than 85%. Gross margin for the quarter will slide to 20-24% with operating margin falling into negative territory at 5-10%.