Powerchip Announced 2011 Unaudited Financial Results

01/31/2012 | 04:54am
Powerchip Announced 2011 Unaudited Financial ResultsJanuary 31, 2012, Hsinchu, Taiwan-Powerchip Technology Corporation (Powerchip) announced today its 2011 unaudited financial figures, where total revenues were NT$ 37.715 billion. Net loss after taxes were NT$22.128 billion and losses per share were NT$ 4.00.

Powerchip Vice President and Spokesperson indicated that as Q4 DRAM pricing continued to decline, Powerchip reduced production in order to reduce cash outflows which led to a booking of idle capacity costs, coupled with losses from investee company Rexchip, resulted in losses of NT$8.868 billion and losses NT$1.61 per share for Q4.

Regarding business transformation, Mr. Eric Tang pointed out that last year Powerchip successfully shifted its business towards self branded products and wafer foundry.  This portion of non-commodity DRAM revenues rapidly grew from 20% in Q1 to over 60% in Q4 of last year.  Last year, among Powerchip's top ten customers, five were wafer foundry customers significantly shifting Powerchip''s business model from being DRAM centric.  Currently Powerchip's own brand NAND Flash and wafer foundry products production is challenging 60,000 12" wafers per month, exhibiting Powerchip's strength in research and development, expanding into diversified markets, and successfully breaking away from the DRAM market's business cycle risks.  

As a result of the growth in the Mobile Device market driving wafer foundry demand, as well as commodity DRAM prices stabilizing, Mr. Eric Tang stated that currently Powerchip's utilization rates have already substantially increased and could have a positive impact on second half of Q1 operations.  Furthermore 30nm 4Gb DRAM process will begin in Q2, taking one step further towards stronger costs competitiveness as well as a improving financial structure.

Spokesperson : Eric Tang(886-2-25170055)
Contact : Grace Yeh(886-3-5795000 ext.2340)