Silicon Power Computer & Communications, which manufactures NAND flash devices as well as DRAM modules, saw its first-quarter revenues decline about 10% sequentially and 5% from a year ago. The firm expects its quarterly sales to return to a growth track in the third quarter.

Silicon Power has announced March consolidated revenues of NT$595 million (US$20 million). Consolidated sales for the first quarter of 2013 totaled NT$1.69 billion.

Despite the sales drop, profits for the first quarter could be impressive thanks to gains in inventory value as a result of NAND flash price growth, Silicon Power said.

The supply of NAND flash has fallen short of demand since 2013, due to chipmakers' supply measures. The shortfall led to a substantial rally in chip prices during the first quarter, Silicon Power indicated.

With chip prices becoming more stable, Silicon Power's revenues and profits for the second quarter will come below the prior quarter's levels, the company said. However, a seasonal pick-up in end market demand is set to boost Silicon Power's sales and profits in the third quarter, the company noted.

Silicon Power expects to post revenue and profit growth in 2013, driven by a healthier balance of NAND flash supply and demand, and more favorable chip prices.

For 2012, Silicon Power reported net profits of NT$266 million (US$8.9 million) on revenues of NT$6.7 billion. Both figures hit record highs.

Silicon Power's NAND flash products include memory cards, USB drives and solid-state drives (SSD), which account for the majority of company revenues. The firm buys chips from Toshiba, SanDisk, Micron and Intel.