A-DATA has recently announced its financial results for August, showing a consolidated revenue of 30.29 billion New Taiwan Dollars (NTD), which is a slight decrease of 0.8% compared to the previous month but a modest year-on-year growth of 1.95%. The cumulative revenue for the first eight months of the year stands at 269.93 billion NTD, marking a significant increase of 39.68% compared to the same period last year.

Breaking down the product structure, DRAM modules accounted for 51.35% of the total revenue, SSDs contributed 34.55%, and other products like memory cards made up 14.1%. For the cumulative period of January to August, DRAM modules represented 46.07% of the revenue, SSDs 28.23%, and other products 25.7%.

Despite the impact of shrinking consumer demand, which led to a revenue drop in June to levels similar to August of the previous year, A-DATA's revenue for July and August has rebounded above the 30 billion NTD mark. However, the August performance remains at a lower level compared to the last year. Looking forward to the third quarter, A-DATA anticipates stable revenue, supported by the advantage of low-priced inventory from previous quarters, which is expected to maintain a healthy gross margin and operational performance.

As of the end of the second quarter, A-DATA's inventory amounted to 17.9 billion NTD, a slight decrease from the first quarter's 19.7 billion NTD. The company expects inventory to decrease gradually in the fourth quarter but will maintain a prudent stocking principle and strict order management. The primary goal for A-DATA this year is to improve the gross margin.

A-DATA remains optimistic about the DRAM market for the second half of this year and next year. With upstream memory manufacturers increasing HBM production, this is expected to cause a crowding-out effect on DRAM output, leading to a supply crunch from the fourth quarter through the second half of next year. Additionally, the proliferation of AI PCs and AI smartphones, starting in the fourth quarter, is anticipated to outpace the growth in DRAM supply even with increased upstream capacity utilization and process yields next year.

Regarding NAND Flash, A-DATA predicts that the rapid price increase may suppress consumer purchasing power and the expansion of storage capacity on the device side, leading to a gradual deceleration of price growth in the second half of the year. Overall, the NAND Flash market is expected to maintain a balanced supply and demand situation.