IC distributors Zenitron and Supreme Electronics both saw their revenues continue to slide in April due mainly to an oversupply of NAND flash products in the market, according to industry sources.

Zenitron posted consolidated revenues of NT$2.19 billion (US$74.2 million) for April, down 16% on month and 34% on year, while Supreme recorded revenues of NT$2.72 billion for the month, decreasing 7.8% sequentially and 24.8% on year.

The oversupply has also resulted in a continual decline in NAND flash prices, affecting profitability for Zenitron and Supreme.

Zenitron, which serves as a sales agent for SanDisk, saw its net profits decline 21.7% on year in the first quarter of 2012, while Supreme, which distributes NAND flash and other memory products for Samsung Electronics, saw its profits tumble 95% during the quarter, according to data of the companies.

However, industry sources indicated that Zenitron is expected to see its revenues advance 10-15% on quarter in the second quarter of 2012, since the roll-out of Intel Ivy Bridge-based notebooks will drive up demand for NAND flash parts and management ICs.

Supreme is conservative about the outlook for the second quarter, as demand for memory products from the PC sector has remained weak, said the sources.