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Nanya's net profit for April soars on boost from DRAM pricing

TAIPEI -- Nanya Technology Corp. (南亞科技) said Wednesday that it reported a significant year-on-year increase in net profit in April in reflection of higher DRAM prices.

Last month, Nanya's net profit rose 349 percent from a year earlier to NT$1.739 billion (US$57.97 million), or NT$0.07 in earnings per share (EPS). In the first four months of this year, the DRAM maker's net profit totaled NT$7.81 billion or NT$0.33 per share.

Nanya, a DRAM manufacturing arm of Formosa Plastics Group, is one of the memory chip-makers that hit a turning point at a time when several major DRAM suppliers have been reining in supplies to prop up their pricing power, market analysts said.

In addition, Nanya has also benefited from its efforts to shift part of its resources to specialty DRAM production to cater to rising demand from mobile device vendors, which has offset the impact from the weakness of the global PC market, they said.

In a recent research report released by DRAMeXchange, Nanya retained the title of the world's fourth-largest mobile memory chip supplier in the world, with a market share of 1.3 percent, but its share was still far behind its foreign rivals Samsung Electronics Co. of South Korea, U.S.-based Micron Technology Inc. and South Korea's SK Hynix Inc.

In the first quarter, Nanya posted NT$6.12 billion in net profit, up from NT$3.96 billion in the fourth quarter. The first-quarter net profit hit the highest level recorded by the company in 29 quarters.

Its EPS for the first quarter was NT$0.26, compared with NT$0.17 in EPS in the previous quarter, while its first-quarter gross margin rose to 39.9 percent, up 22.1 percentage points from a quarter earlier.

Nanya said that as global DRAM demand remains solid, its second- quarter shipments could rise 4 percent-6 percent from a quarter earlier.

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