Taoyuan, Taiwan (R.O.C.) January 22nd, 2008 – Inotera Memories, Inc. (TAIEX: 3474) today announced results for the fourth quarter and the fiscal year 2007, which ended December 31st, 2007. Fourth quarter sales revenues were NTD 10,059 million, and net loss was NTD 3,664 million with losses per share of NTD 1.10. Fourth quarter results include a charge of NTD 990 million to write down the carrying value of work in process goods due to the sharp decline in DRAM average selling prices. For the fiscal year of 2007, Inotera achieved sales revenues of NTD 45,865 million and a net income of NTD 927 million with earnings per share of NTD 0.28. All numbers are unaudited, and EPS is based on weighted average outstanding shares of 3,338 million.
DRAM average selling prices have further declined in the fourth quarter 2007, continuing the trend seen earlier in the year. In spite of the weak pricing environment, Inotera has reached record high sales revenues in 2007, representing a 12% increase year-on-year and resulting in another profitable year. Contributing to these remarkable results were a significant 112% increase in annual bit shipments due to a speedy ramp-up of Fab-2 and progress in cost efficiency from continuous improvements in cycle time and production yield.
Wafer shipments have grown 6% quarter-on-quarter with a bit shipment increase of 9% in the fourth quarter, which was close to the upper end of the Company's earlier guidance. The Company expects its bit shipments in the first quarter of 2008 to be flat quarter-on-quarter, while the annual bit shipment growth in 2008 is expected to be 50% compared to year 2007 as a result of conversion to the advanced 70/75nm trench technology.
In the fourth quarter of 2007, Inotera has achieved shipment qualification and started mass production of advanced 70/75nm trench technology for both 512Mb and 1Gb DDR2 DRAM products and is scheduled to fully convert its wafer starts to the 1Gb DDR2 DRAM productivity shrink in 70/75nm technology in the third quarter of 2008. Furthermore, the Company expects to start pilot run for a 1Gb DDR3 DRAM product in 70/75nm trench technology in the first quarter of 2008. In addition, Inotera along with its technology partners Nanya Technology and Qimonda AG have started the transfer project of the new 58nm process trench technology, and Inotera is scheduled to pilot run this latest technology in the second half of CY2008. The new technology is expected to further improve the Company's productivity and cost efficiency.
Inotera's capital expenditures were NTD 44 billion in year 2007 and are expected to be NTD 30 billion in year 2008, which are mainly for 70/75nm technology conversion and pilot run of the new 58nm technology.
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 (4Q'07 / FY 2007 results are unaudited)
|
Unit: Million NT$, except for EPS in NT$ |
4Q’07 |
3Q’07 |
QoQ |
YoY |
Y2007 |
|
Net Operating Revenues |
10,059 |
|
12,690 |
|
-21% |
-14% |
45,865 |
|
|
Gross Profit (Loss) |
-2,238 |
|
1,149 |
|
-295% |
-143% |
4,042 |
|
|
SG&A Expenses |
-95 |
|
-97 |
|
-2% |
-4% |
-391 |
|
|
R&D Expenses |
-180 |
|
-93 |
|
94% |
362% |
-487 |
|
|
Total Operating Expenses |
-275 |
|
-190 |
|
45% |
-99% |
-878 |
|
|
Operating Income (Loss) |
-2,513 |
|
959 |
|
-362% |
-149% |
3,164 |
|
|
Non-operating Income (Expense) |
-1,383 |
|
-490 |
|
182% |
N/M |
-2,120 |
|
|
Income (Loss) before Income Tax |
-3,896 |
|
469 |
|
N/M |
-178% |
1,044 |
|
|
Income Tax Benefit (Expense) |
232 |
|
-26 |
|
N/M |
N/M |
-117 |
|
|
Net Income (Loss) |
-3,664 |
|
443 |
|
N/M |
-175% |
927 |
|
|
EPS (retroactively adjusted) |
-$1.10 |
|
0.13 |
|
N/M |
-174% |
0.28 |
|
|
Weighted Average Outstanding Shares
(Million shares) |
3,338 |
|
3,338 |
|
|
|
3,338 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin (%) |
-22% |
|
9% |
|
|
|
9% |
|
|
Operating Margin (%) |
-25% |
|
8% |
|
|
|
7% |
|
|
Non-operating Income (Expense) (%) |
-14% |
|
-4% |
|
|
|
-5% |
|
|
Income Tax Benefit (Expense) (%) |
2% |
|
0% |
|
|
|
- |
|
|
Net Margin (%) |
-37% |
|
4% |
|
|
|
2% |
|
|
EBITDA Margin (%) |
26% |
|
52% |
|
|
|
50% |
|
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.