Japan's Elpida Memory swung to operating losses in the second quarter of its fiscal 2011 from profits a year ago, as sluggish growth in PC shipments led to a worsening of the supply-demand balance for DRAM and steep drops in chip prices.
Elpida has announced operating losses of JPY44.7 billion (US$588 million) for the quarter ended September 30, 2011, compared to profits of JPY40.2 billion during the same period of its fiscal 2010. Net sales for the quarter declined 56.9% from a year ago to JPY64.1 billion.
On a sequential basis, net sales for the July-September quarter were 33.1% lower than the JPY95.7 billion posted in its fiscal first quarter ended June 30, while losses widened from JPY3.8 billion, according to company data.
During the July-September period, Elpida saw its bit shipments increase 16% sequentially and 56% on year, however, ASPs for the period fell 37% on quarter and 68% on year.
Elpida generated net losses of JPY48.9 billion in the fiscal second quarter, compared to losses of JPY7.9 billion in the prior quarter and profits of JPY9.2 billion a year earlier.
Elpida swung to operating losses of JPY48.5 billion in the first half of its fiscal 2011 from profits of JPY67.9 billion a year ago. Sales for the six months ending September 30, 2011, totaled JPY159.8 billion, compared to the JPY325.1 billion posted in the same period of 2010.
Elpida said its planned capex of JPY80 billion for the company's fiscal 2011 remains unchanged. Its shipment growth forecast for the year stays at 40-50%.