Taoyuan, Taiwan (R.O.C.) January 20th 2009 – Inotera Memories, Inc. (TAIEX: 3474) today announced results for the fourth quarter and the fiscal year 2008, which ended December 31st, 2008. The operating loss registered for the fourth quarter of year 2008 was NTD 4,782 million and net loss was NTD 6,568 million, on the back of sales revenue of NTD 8,253 million. The net loss incurred for the quarter is equal to a loss per share of NTD 1.97. Fourth quarter results include a non-operating charge of NTD 215 million for the write-down of the carrying value of work-in-process due to the sequential decline of DRAM prices. For the fiscal year 2008, Inotera achieved sales revenues of NTD 37,540 million with an operating loss of NTD 14,725 million and a net loss of NTD 18,065 million or loss per share of NTD 5.41. All numbers are un-audited, and the loss per share calculation is based on weighted average outstanding shares of 3,338 million.
The 23% decrease in sales revenues quarter-on-quarter was due to a 45% sequential decline in DRAM average selling prices and a 5% decrease in bit shipments as a result of production cuts during the fourth quarter of 2008. Compared to the previous quarter, the production slowdown has resulted in an 8% decrease in wafer shipments given deteriorating industry conditions during the fourth quarter of 2008. Going forward, the Company expects a continuous need to be responsive to changes in the market environment and may adjust its production volume accordingly.
On November 26th, Micron Technology, Inc. has completed the acquisition of a 35.6% stake in Inotera from Qimonda AG, and 50% of Inotera's manufacturing capacity will be taken over by Micron step-by-step during the nine-month period following that date.
Total capital expenditures were NTD 19.7 billion for year 2008, representing capex savings of about NTD 10 billion compared to the original guidance of NTD 30 billion. In 2009, the Company expects to spend about NTD 6 billion for a pilot line to prepare the conversion to stack technology. The Company plans to start the pilot production in stack technology from the third quarter of 2009 and will decide on exact conversion schedule depending on funding availability.
About Inotera
Inotera Memories, Inc. was incorporated on January 23rd, 2003. Inotera's production facilities are designed to manufacture high-density and high-performance commodity DRAM（Dynamic Random Access Memory）products using state-of-the-art technology. The combination of world-leading technology transferred from its technology partners and local 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 Inotera's IR Website：http://ir.inotera.com
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(including 4Q08 unaudited financial summary)
Spokesperson
Charles Kau, President
Press Contact
Dora Tou, IR / PR Department
Tel. 03-327-2988 Ext. 3935
E-mail：doratou@inotera.com
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