Japan's Elpida Memory has disclosed preliminary results for the first half of the company's fiscal 2011, estimating it slipped to the red with sales declining 51% on year.
Elpida expects to report net losses of JPY57 billion (US$741 million) for the six months ending September 30, 2011, compared to profits of JPY39.9 billion a year earlier. Consolidated sales for the six-month period would shrink to JPY160 billion from the JPY325.1 billion posted in the same period of its fiscal 2010.
Elpida estimated it swung to operating losses of JPY49 billion in the first half of fiscal 2011 from profits of JPY67.9 billion a year ago.
Elpida attributed the 51% sales decline to falling selling prices for its PC DRAM as well as the strong Japanese yen. Meanwhile, inventory valuation losses resulted in the huge operating losses during the period, the company said.
In the quarter ended September 30, Elpida's operating losses expanded to JPY45 billion from JPY3.8 billion in the prior quarter. It posted sales of JPY64 billion in the fiscal second quarter, down 33% from JPY95.7 billion in the first.
Elpida revealed that its bit shipments for fiscal second-quarter 2011 grew 16% sequentially, topping its guidance of 10% growth. But ASP for the period fell 37% on quarter causing lower sales and wider losses, the company said.
Elpida is scheduled to release actual results for the second quarter of fiscal 2011 on October 27.