Memory module maker Transcend Information has announced net profits for the first quarter of 2016 declined 25.4% from a year earlier to NT$623 million (US$19.3 million), while consolidated revenues fell 7.9% on year to NT$5.65 billion.

Transcend's gross margin for the first quarter of 2016 improved to 22.2%, however. The company credited its higher gross margin to a rebound in NAND flash prices and steady growth in profits generated from its industrial product line, as well as better managed procurement and inventory controls.

Transcend's net profits for first-quarter 2016 were affected by lower revenues and foreign exchange losses, the company indicated. Net EPS for the quarter came to NT$1.45.

Of Transcend's total revenues in the first quarter of 2016, industrial products accounted for 36.4%, followed by consumer flash devices with 32.7%, strategic products with 19.7% and standard DRAM modules with 11.2%, the company disclosed. A declining market for flash cards and USB drives led to a revenue decrease for the company.

Looking forward, Transcend indicated its new SSD products utilizing TLC (triple-level cell) NAND flash chips will drive revenue growth for the rest of 2016. Transcend added it will be aggressively expanding its SSD market presence.