A-Data Technology and Transcend Information are expected to see their second quarter profits maintain or surpass levels seen in first-quarter 2009, as DRAM prices are on a return to cost levels, according to market watchers.
The spot price of effectively tested (eTT) 1Gb DDR2 has recently fluctuated between US$1.00-1.30, rising from its lowest level of US$0.50, the watchers indicated. DRAM module makers are estimated to have seen a significant gain in their inventory value as a result, and are now better off with better inventory management, the watchers added.
A-Data managed to swing back to profitability in the first quarter of 2009, and saw its gross margin reach 11% thanks to improved ASPs. The module maker recorded a net EPS of NT$2.03 in the first quarter, compared to an EPS of negative NT$5.83 in the previous quarter, and NT$2.36 a year ago.
A-Data has said sales generated from DRAM modules are likely to outperform its NAND flash product segment in growth during the second half of 2009, as DRAM pricing has room to rise further.
Transcend scored a gross margin of 14.6% and an EPS of NT$2.16 in the first quarter. The company also agreed there is likely to be a rally in DRAM prices during the latter half of the year, but said growth momentum still has to take PC demand into account.
Transcend chairman Peter Su commented in June that DRAM prices would likely approach US$2 in fourth-quarter 2009 and surpass cost levels.
Source: Taiwan Stock Exchange (TSE), compiled by Digitimes, July 2009
Article translated by Jessie Shen
