10/19/2011
Inotera Reports Third Quarter 2011 Results: Sales of NTD 8,944 Million and Loss per Share of NTD 1.52

Pulled-in full 42nm-conversion to early September

Taoyuan, Taiwan (R.O.C.), October 19th, 2011 – Inotera Memories, Inc. (TWSE: 3474) today announced results for the third quarter of its fiscal year 2011, which ended September 30th, 2011. The operating loss registered for the third quarter of year 2011 was NTD 6,917 million, and net loss was NTD 7,022 million, on the back of sales revenues of NTD 8,944 million. The net loss incurred for the quarter is equal to a loss per share of NTD 1.52. Cost of goods sold for the third quarter include a charge of NTD 1,198 million for the write-down of work-in-process inventories due to lower-of-cost-or-market accounting rules. All numbers are un-audited, and the loss-per-share calculation is based on weighted average outstanding shares of 4,641 million.

The company's sales revenues decreased by 12% quarter-on-quarter due to a 21% decline in average sales revenue per wafer that was only partially offset by a 12% growth in wafer shipments. The sequentially lower sales revenue per wafer was mainly as a result of a steep decline in our customers' average selling prices of DRAM products in the market place, partially offset by 15% higher bits per wafer quarter-on-quarter.

Inotera has completed its full conversion to 42nm technology in early September, leading to a 28% quarter-on-quarter growth in bit shipments and a corresponding reduction of 16% in fully-loaded cost per bit in the third quarter compared to the previous quarter. The company expects its bit shipments to increase by 15% to 20% for the fourth quarter sequentially and grow by around 130% for the year 2011 compared to last year. Moreover, Inotera has launched pilot runs of 30nm technology in mid-August with very successful results, and is preparing to start volume production of 4Gb DDR3 DRAM in the first quarter of 2012 with the target of having converted 30% of its capacity to 30nm by mid- 2012.

Year-to-date capital expenditures were NTD 11.3 billion as of the end of September 2011, and the expected capital expenditures for year 2011 are revised from the previous guidance of NTD 17 billion to NTD 12 billion due to less-than-projected spending for 42nm technology conversion and 30nm-preparation resulting from the management's decision not to use the Fab-M (former MeiYa fab) cleanroom space for the technology conversion to 30nm.

On October 6th, 2011, the Board of Directors of the company has approved the issuance of 1.1 billion new common shares at an appropriate timing in order to finance the procurement of machinery and equipment for the 30nm conversion and to pay back debt. The execution of this rights offering will depend on the market situation and the company's funding requirements, and the issue price is expected to be set by the company's Board Meeting after receiving the Securities and Futures Bureau's approval.


About Inotera
Inotera Memories, Inc. was incorporated on January 23rd, 2003. Inotera's production facilities are designed to manufacture high-density and high-performance 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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Spokesperson Charles Kau, President         

Press Contact Ivy Hung, IR / PR Department
Tel. 03-327-2988 Ext. 3371 E-mail:ivyhung@inotera.com

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