A-data Technology has posted unaudited net losses of NT$419 million (US$13 million) in the second quarter of 2010, bringing net income for the first half of the year to NT$37 million, according to financial data released by the memory module house.
A-data attributed the weak second quarter to inventory losses. In a filing with the Taiwan Stock Exchange (TSE), the company noted that customers have turned more cautious since May because of weak demand arising from Europe's debt crisis. Monthly quotes for 1Gb DDR2 averaged US$2.09 in May compared to US$3.15 in March, showing a price fall of 33.65%.
A-data revealed that its supply of DRAM modules ran short of demand during the first quarter. Therefore, the company moved to build up its inventory, which was raised to NT$5.45 billion (in terms of value) as of the end of March.
NAND flash price fluctuations in the second quarter also eroded A-data's profitability in the second quarter. Chip suppliers' ramp-ups of 3-bit-per-cell chips weakened average prices for NAND flash memory during the quarter, A-data indicated.
A-data's first-half 2010 earnings translated into an EPS of NT$0.17, compared to NT$3.96 a year ago.