Memory module maker Power Quotient International (PQI) has reported net losses of NT$747 million (US$24.5 million), or NT$2.69 per share, for the third quarter of 2010. The losses widened from NT$109 million or NT$0.34 a share in the second quarter, reflecting the impact of DRAM and NAND flash price falls.
PQI's third-quarter losses incurred from the declining price of inventory was larger than market expectations.
A Chinese-language Commercial Times report cited unnamed sources indicating PQI has cut down its inventory level to less than NT$1 billion in order to minimize losses in inventory value arising from continued drops in chip prices.
For the first three quarters of 2010, PQI's net losses amounted to NT$631 million, translating into a negative EPS of NT$2.26.
In July, PQI named Tai-chiang Gou, chairman of Foxlink (Cheng Uei Precision Industry), as the new chairperson of the company to succeed Jance Lu, who resigned for health reasons. The announcement came two days after Foxlink acquired an almost 16% stake in PQI through a private placement.
Industry sources have speculated that PQI will likely shift its focus on expanding its OEM business, and integrate its resources with those of Foxlink. Foxlink is a member of the Foxconn Group, specializing in connectors and related components for smartphones and portable electronics products.