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Nanya Technology Reports Second Quarter 2013 Results 2013/07/23

Taoyuan, Taiwan, July 23rd, 2013 – Nanya Technology Corporation, (TWSE: 2408), today announced its results of the second quarter, ended June 30th, 2013. Nanya’s quarterly consolidated sales revenue was NTD 13,835 million, an increase of 49.6 percent compared to the first quarter of year 2013, due primarily to a 23.5 percent increase in sales volume compared to the previous quarter, a 19.4 percent increase in average selling prices (ASP), and New Taiwan Dollar depreciated 1.5 percent. Operating Income of the quarter was NTD 1,475 million. The quarter recognized NTD 590 million from Inotera’s profits under equity method (Nanya currently held 26.3percent ownership interest in Inotera). The quarter included the gain of NTD 2.9 billion from recovery of inventory valuation. The company posted its net Income of NTD 1,676 million or NTD 0.07 per share (the earnings per share calculations are based on weighted average outstanding shares of 23,960 million). All consolidated numbers are unaudited.

Positive results of the second quarter of 2013 is attributed to average selling price (ASP) increase, product portfolio strengthen, the recognition of profits from Inotera, and the gain from recovery of inventory valuation. Continuously increasing value-added DRAM products portion, Nanya reached 55 percent of sales revenue in premium (Non-PC) products in the second quarter, and consumer and low power DRAM products accounted for nearly 50 percent of its sales revenues of the quarter.

The company’s consolidated gross margin improved 25 percent in the second quarter compared to the first quarter of 2013. Gross margin improved mainly due to product portfolio enhancement and ASP increase. Furthermore, Nanya plans to reach more than 70 percent of value-added DRAM products on revenue basis by the fourth quarter of 2013 to further optimizing its profits through growing Non-PC segments.

The company plans to pull in 30nm production ramp schedule to reach 40,000 wafer starts per month in October 2013. In the second quarter, Nanya’s capacity in 30nm technology has reached 20 percent of its total wafer-start capacity, and will to convert more than 50 percent by the third quarter.

The bit shipment of the third quarter is estimated to down mid-teens percentage range quarter-on-quarter due to the capacity share reduction from Inotera; while the annual bit shipment growth rate of 2013 is estimated to be around 12 percent year over year. Nanya's capital expenditures (capex) on a book-entry basis were NTD 2.8 billion in the second quarter; NTD1.25 billion in the first quarter and guidance for the year 2013 will be around NTD 6.3 billion.
 
For the market outlook in second half of year 2013, the company expects the DRAM market supply and demand situation will be cautiously uptrend, leading to further DRAM price mildly increase through third quarter.

 

2Q 2013 Consolidated Income Statement

 

Q2'13

Q1'13

QoQ

Q2'12

YoY

Amount: Million NT$

Unaudited

Audited

Audited

Net Sales

13,835

100%

9,246

100%

50%

10,102

100%

37%

Cost of Goods Sold

11,542

83%

7,501

81%

 

13,278

131%

 

Gross Margin

2,293

17%

1,745

19%

31%

-3,177

-31%

172%

Gross Margin (LCM excluded)

-658

-5%

-2,757

-30%

 

-4,396

-44%

 

SG&A Expenses

409

3%

489

5%

 

  498

5%

 

R&D Expenses

409

3%

354

4%

16% 

 1,599

16%

-74% 

Operating Income

1,475

11%

902

10%

63%

-5,274

-52%

128%

Non-operating Income (Exp.)

220

2%

-393

-4%

 

-1,409

-14%

 

Income before Tax

1,695

12%

509

6%

233%

-6,684

-66%

125%

Income Tax Benefit (Expense)

-3

0%

-4

0%

 

0

0%

 

Net income attributable to non-controlling interests

16

0%

-21

0%

 

0

 

Net Income attributable to NTC

1,676

12%

526

6%

219%

-6,684

-66%

125%

EPS(NT$)

0.07

 

0.02

 

 

-0.45

 

Net Value Per Share

0.17    

 

0.10

 

 

0.39

Note : Q2’13 Cost of Goods Sold includes gain of NT$ 2.9 billion from recovery of inventory valuation.
Note : Q1’13 Cost of Goods Sold includes gain of NT$ 4.5 billion from recovery of inventory valuation.


Disclaimer

This press release contains forward-looking statements. These statements relate to future events or our future financial performance. These statements are only predictions. Actual events or results may differ materially.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no duty to update any of the forward-looking statements after the date of this press release to conform such statements to actual results or to changes in our expectations.
Readers are also urged to carefully review and consider the various disclosures made by us which attempt to advise interested parties of the factors which affect our business.

 

About Nanya
Nanya Technology Corporation, a member of the Formosa Plastics Group, is industry leading pure-play consumer Memory Company, focusing on research and development, design, manufacturing, and sales of consumer and Low Power DRAM products. Nanya plans to enlarge market share in the high value-added DRAM market segment. NTC’s common stock is traded on the Taiwan Stock Exchange Corporation (TWSE) under the 2408 symbol. The company currently owns 300mm fabrication facility in Taiwan and starts its 30nm stack process technology mass production in year 2012. The company also has a 300mm joint venture, Inotera Memories, Inc., which operates two 300mm fabrication facilities in Taiwan. Further information is available at http://www.nanya.com

Contact persons:
Spokesman
Dr. Pei-Ing Lee – Senior Vice President    TEL: 886-3-3281688 x1900, pilee@ntc.com.tw
 
Press Contact
Sandra Liu – Business Management Div.  TEL: 886-3-3281688 x 6006, sandraliu@ntc.com.tw  

 

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