Memory module maker Transcend Information has suggested that the market for DRAM products is still tight due to a chip shortage, and the company expects to register a sequential revenue increase in the second quarter of 2010 despite it being a low season.
As for NAND flash, Transcend said demand for smartphones and tablet PCs will be key to warming up the market for NAND flash memory. The company added it is working closely with local channel distributors in emerging markets, Japan, Europe and the US for its own-brand flash drives and memory cards.
In addition to memory products, Transcend said shipments of its strategic products (digital photo frames and portable electronics devices) are growing steadily. The company looks to increase ASPs for the product segment.
Transcend's sales ratio between DRAM modules, NAND flash devices and strategic products reached 41:37:22 in 2009.
Transcend reported net profits of NT$511 million (US$16 million) on revenues of NT$8.1 billion for the first quarter of 2010. Due to foreign exchange losses, Transcend saw first-quarter profits drop from NT$1.39 billion posted in the fourth quarter of 2009. The earnings for the first quarter translated into an EPS of NT$1.21.
Rival A-Data Technology has announced net profits of NT$456 million for the first quarter of 2010, down from NT$729 million in the previous quarter but up 25% on year.