The Channel logo

News

By | Tony Smith 26th April 2005 11:35

Elpida declares first annual profit

But figures below expectations

Elpida declared its first ever annual profit yesterday as it unveiled its fourth quarter results.

For the three months to 31 March 2005, Elpida recorded revenues of ¥50.73bn ($480m), up 57.5 per cent on the year-ago quarter's ¥30.21bn ($286m). Net income went the other way, falling from a ¥490m ($4.6m) profit to a loss of ¥1.68bn ($15.9m). Earnings fell from ¥7.58 (7c) a share to a loss of ¥17.37 (16c) a share.

For the year as a whole, the company said sales reached ¥207.03bn ($2bn), up more than 106 per cent from FY2004's ¥100.44bn ($951m). Annual net income came to ¥8.21bn ($78m), a big improvement on last year's ¥26.87bn ($254m) loss.

Both revenue and income totals were below the company's expectations: ¥211-214bn ($2-2.1bn) and ¥12-16bn ($113-151m), respectively.

Company president Yukio Sakamoto said the firm must continue to drive down costs, which will be a key element in its strategy for the coming year. In part, that will mean accelerating its adoption of 90nm fabrication technology, which in the case of 512Mb ECC DDR 2 chips, for example, will yield a 51 per cent cost saving over Elpida's current 110nm process, it said.

Elpida began punching out 90nm chips on 300mm wafers earlier this month. Volume production is slated for Q4, by which time it expects 90nm parts to account for 15 per cent of its output.

Elpida will invest ¥143.6bn ($1.4bn) in new plant this fiscal year, 19 per cent more than it did last year. Most of the money will be spent on a second 300mm wafer fab, using an 80nm process.

The upshot of all this activity, the company forecast, will be a 26 per cent increase in sales to ¥260bn ($2.5bn) for FY2006. The company also predicted operating profits for next year would jump 70 per cent to ¥14bn ($133m), with a positive net income. ®

Related stories

Legal costs cut Rambus earnings
Elpida slashes FY2004 income forecast
Toshiba, Elpida prep 'industry's fastest' DRAM
Elpida samples 256Mb 800MHz DDR 2 chips
Elpida licenses 'DVD on a chip' memory tech

alert Send corrections

Opinion

Woman cuddles 'sly-looking' Fennec fox. Photo by Shutterstock
Cartoon of employee asking wky boss makes hium wear suspenders (while pincer through open trapdoor remains poised above his head) illustration by Cartoon resource for Shutterstock

Frank Jennings

It's not like my boss painstakingly nurtured the contacts, right?

Features

Girl and computer, photo via Shutterstock
Middle-class terror of engineering also part of problem
Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world