Major suppliers of NAND flash device controller ICs have reported mixed earnings results for the first quarter of 2012, showing their diverse capabilities in making a smooth transition to new products.

Phison Electronics, Silicon Motion Technology and Alcor Micro generated profits in the first quarter. The firms have all remarked they would focus on products targeted at SSD, eMMC and USB 3.0 device applications.

In contrast, Genesys Logic and Skymedi suffered losses in the first quarter reflecting their inability to cope with a more challenging market environment.

Major chip producers' technology transitions to newer 20nm and 19nm processes boosted the global output of NAND flash memory, which has resulted in an oversupply and caused chip prices to fall since the start of 2012. Suppliers of flash device controllers have also been affected by the price decreases, but some managed to make profits through their focus on high-margin products, and also through technology advances to improve company cost structure.

Phison reported net profits of NT$687 million (US$23.5 million), which translated into an EPS of NT$3.84, for the first quarter of 2012. The firm now is making its controller products using 55nm process technology, and identifies USB 3.0, SSD and eMMC devices as the main applications driving company growth in 2012.

Phison added that monthly shipments of its eMMC device controllers are expected to top 20 million units in the second quarter of 2012, compared to 10 million units during 2011.

Alcor Micro announced net profits of NT$93 million, or NT$1.18 a share, on revenues of NT$752 million for the first quarter of 2012. The firm landed rising orders for downgrade NAND flash, as well as orders placed by module partner Transcend Information for flash memory cards.

Downgrade NAND flash chips have appeared in the market as suppliers' fast transition to their 19nm and other newer node technologies has led to an excessive supply to their system customers.

Skymedi swung to net losses of NT$80 million mainly due to fewer orders for memory cards placed by Samsung Electronics. Silicon Motion reportedly has secured some the orders from Samsung.