Solid State System (3S), a NAND flash controller design house invested by Toshiba and Kingston Technology, swung back to profitability in the first quarter of 2009, with net income of NT$10.86 million (US$0.33 million) on sales of NT$171 million for the period, compared to net loss of NT$18.05 million on revenues of NT$170 million for the fourth quarter of 2008.
The company expects that net income for the second quarter will remain positive, thanks to stabilizing memory prices and resumed orders. The NAND flash controller designer said increasing demand for consumer electronics products will be key to drive up its performance during the second half of this year.
The designer's April sales grew 22.1% sequentially to NT$74 million, compared to single-digit growth for the previous two months, the company said.
Rising demand and stabilizing NAND flash prices are expected to help 3S swing back to profits this year from losses of NT$172 million in 2008 and NT$13 million in 2007, market watchers said.
Rival Phison Electronics has announced that sales for April 2009 increased 16.5% sequentially to NT$1.93 billion. Phison's net income for the first quarter narrowed to NT$449 million, compared to the previous quarter's NT$554 million.
Article translated by Jessie Shen
