Silicon Power Computer & Communications saw its net profits jump 122% sequentially in the third quarter of 2012, buoyed by NAND flash price growth, according to the memory module firm specializing in flash-based products.
Silicon Power generated third-quarter net profits of NT$108 million (US$3.69 million), or NT$1.87 a share. The firm credited the positive performance to gains in inventory value arising from continued growth in chip prices, as well as sales of own-brand products. EPS for the quarter came to NT$1.87.
Silicon Power posted revenues of NT$1.74 billion in the third quarter, up about 27% sequentially, with gross margin climbing 2.93pp on quarter to 13%. Improvement in gross margin was driven mainly by the development of its own-brand business, the company noted.
Silicon Power's revenues for the first three quarters of 2012 increased 9.6% from a year ago to NT$4.87 billion, with gross margin up 3.51pp on year. Net profits for the nine-month period totaled NT$210 million, or NT$3.74 a share.
Silicon Power expects to enjoy another sequential revenue growth, but at a slower pace, in the fourth quarter, with net profits staying similar to the high levels reached in the third quarter.
Toshiba and Micron Technology reportedly are Silicon Power's major chip suppliers. Toshiba already cut its overall NAND-chip production by about 30% starting end-July.
Silicon Power develops and manufactures NAND flash memory devices, which account for 70-80% of company revenues, as well as DRAM modules, solid-state drives (SSD) and external hard drives. Its target markets are mainly emerging countries.
Article translated by Jessie Shen
