Memory module firm Adata Technology expects its revenues to grow by a double-digit rate sequentially in the fourth quarter of 2011, buoyed by rising sales of products used in non-conventional PCs, according to company chairman Simon Chen.
Adata's deployment into the market for server-use DRAM and SSD memory products is bearing fruit, Chen indicated. With DRAM-chip prices bouncing back and more stable NAND pricing, Adata stands a good chance of returning to profitability in 2011, Chen said.
In addition, Chen noted that Adata along with other Taiwan-based memory module companies have moved to diversify their product portfolios. It is now inappropriate to connect upstream DRAM chipmakers with module suppliers despite that the two sides used to have a close relationship, Chen said.
A number of memory module makers have been restructuring their business strategies and product lines since late 2008, when the global financial crisis hit, Chen said. The move is to mitigate the impact brought by upstream chip suppliers' operations, Chen pointed out.
Adata is also among the companies looking to optimize their product mix, Chen said. Adata is moving toward increased production of higher-margin products such as server-use DRAM modules, SSDs and external portable HDDs, Chen indicated.
Adata swung to net losses of NT$14.7 million (US$480,000) in the first half of 2011 from profitability in first-half 2010.