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10/22/2007
Inotera Reports Third Quarter Results --- Remaining Profitable in a Weakening DRAM Market
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Taoyuan, Taiwan (R.O.C.), October 22nd, 2007 － Inotera Memories, Inc.（TAIEX：3474）today announced results for the third quarter of its financial year 2007, which ended September 30th, 2007. Inotera achieved sales revenues of NTD 12,690 million and a net income of NTD 443 million with earnings per share of NTD 0.13 based on weighted average outstanding shares of 3,338 million in the third quarter. For the first nine months of financial year 2007, Inotera achieved sales revenues of NTD 35,805 million and a net income of NTD 4,591 million with earnings per share of NTD 1.38. All numbers are unaudited.
Despite of a weakening DRAM market with a sequential drop in average selling prices, Inotera continued to be profitable in the third quarter in 2007, due to its cost efficiency and better-than-expected increase in bit shipments and wafer shipments. Inotera's Fab-2 has completed its equipment and tool move-in, and Fab-1 and Fab-2 have achieved a combined full capacity of 120 thousands wafer starts per month in September, 2007, one quarter ahead of original schedule. For the third quarter, wafer shipments have grown 23% quarter-on-quarter with a bit shipment increase of 28%, better than previous guidance. The Company expects its bit shipment growth in the fourth quarter to be 5% to 10% quarter-on-quarter, while the whole year's bit growth is expected to be 110% compared to the bit shipments of 2006 as a result of the fast ramp-up in Fab-2 and significant improvements in 90nm production yield and cycle time in 2007.
The Company has achieved Shipment Qualification for the 80nm technology in September 2007 and has started the volume ramp from the beginning of October. The 70/75nm technology, both for 512Mb and 1G products, is on schedule to achieve Shipment Qualification and start volume ramp in the fourth quarter.
Year 2007 capex is estimated to be NTD 45 billion, which is below the previous guidance of NTD 51.4 billion. This is due to capital savings and some capex crossing over into year 2008.
About Inotera
Inotera Memories, Inc. was incorporated on January 23rd, 2003. Inotera is a joint venture between Qimonda AG and Nanya Technology Corporation. Inotera's production facilities have been designed to manufacture high-density and high-performance commodity DRAM（Dynamic Random Access Memory）products using state-of-the-art trench technology. The combination of Qimonda's (the former Memory Products Group of Infineon Technologies) world leading technology and Nanya's cost-efficiency in mass production has resulted in an innovative company that is highly productive, highly competitive and at the leading edge in the DRAM industry. For more information please visit： http://www.inotera.com
Financial Summary (3Q’07 results are unaudited)
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Unit: Million NTD, except for EPS data |
3Q’07 |
2Q’07 |
QoQ |
YoY |
1Q ~ 3Q’07 |
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Net Operating Revenues |
12,690 |
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10,845 |
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17% |
25% |
35,805 |
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Gross Profit |
1,149 |
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633 |
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82% |
- 71% |
6,280 |
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SG&A Expenses |
-97 |
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-102 |
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- 5% |
17% |
- 296 |
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R&D Expenses |
-93 |
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-135 |
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- 31% |
41% |
- 307 |
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Total Operating Expenses |
-190 |
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-237 |
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- 20% |
28% |
- 603 |
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Operating Income |
959 |
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396 |
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142% |
- 75% |
5,677 |
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Non-operating Income (Expense) |
-490 |
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-128 |
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N/M |
N/M |
-737 |
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Income before Income Tax |
469 |
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268 |
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75% |
- 89% |
4,940 |
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Income Tax Benefit (Expense) |
-26 |
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5 |
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N/M |
N/M |
-349 |
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Net Income |
443 |
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273 |
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62% |
- 90% |
4,591 |
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EPS (retroactively diluted) |
0.13 |
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0.08 |
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62% |
- 89% |
1.38 |
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Weighted Average Outstanding Shares
(million shares) |
3,338 |
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3,338 |
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3,338 |
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Gross Margin (%) |
9% |
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6% |
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18% |
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Operating Margin (%) |
8% |
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4% |
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16% |
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Non-operating Income (Expense) (%) |
-4% |
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-1% |
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-2% |
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Income Tax Benefit (Expense) (%) |
0% |
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0% |
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-1% |
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Net Margin (% ) |
4% |
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3% |
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13% |
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EBITDA Margin (%) |
52% |
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52% |
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57% |
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Spokesperson
Charles Kau, President
Press Contact
Jennifer Chien, IR / PR Department
Tel. 03-327-2988 Ext. 3938
E-mail：jenniferchien@inotera.com
Disclaimer
This press release contains some forward-looking statements that are subject to substantial risks and uncertainties. Typically, these statements contain words such as “anticipate," “believe,” “could,” “estimate,” “expect,” “intend,” “plan,” forecast,” “project,” “predict,” “potential,” “continue,” “may,” “should,” “will” and “would” or similar words. You should consider these forward-looking statements carefully because such statements are only our expectations or projections about future events, and actual results may differ materially from those expressed or implied by such statements. The forward-looking statements in this press release include, but not limited to, growth rates for various markets estimated by a third party source, future products and technology development, widespread market acceptance of the hosted delivery model, future revenue growth and profitability. You should be cautioned that the forward-looking statements are not the guarantees of our future performance. The forward-looking statements contained in this press release are made only as of the date of this press release and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances, except as required by law.
This press release and the information contained herein is the property of Inotera, Memories Inc. |
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