January 10th, 2020 – Nanya Technology Corporation, (TWSE: 2408), today announced its results of operations for the fourth quarter, ended December 31st, 2019. Nanya’s quarterly sales revenue was NT$ 13,116 million, an 11.4 percent decrease compared to the third quarter, 2019. In the fourth quarter of 2019, average selling prices (ASP) decreased by low single digits percent and bit shipment decreased by mid-single digits percent quarter over quarter. NTD/USD appreciated 2.1%.
Gross profit of the quarter was NT$ 3,377 million; gross margin was 25.7 percent; a 2.3 percentage points decrease from that in the previous quarter. Operating Income of the quarter was NT$ 1,440 million; operating margin was 11.0 percent; a 4.2 percentage points decrease from that in the last quarter. Non-operating income of the quarter was NT$ 109 million primarily due to foreign exchange, interest incomes and investment income under equity method. Income tax for this quarter was NT$ 271 million. The Company had net profit of NT$ 1,278 million, with net margin of 9.7 percent, a 5.2 percentage points decrease from that in the previous quarter. Earnings per share (EPS) was NT$ 0.42 in the fourth quarter (based on weighted average outstanding shares of 3,053 million).
The annual sales revenue was NT$ 51,727 million in 2019. Gross Profit of the year was NT$ 16,494 million. Operating income was NT$ 9,517 million. The net income of NT$ 9,816 million, NT$ 3.22 earnings per share (the earnings per share calculations are based on weighted average outstanding shares of 3,045 million). Book value per share was NT$ 49.78 at the end of the year. All numbers are unaudited.
2019 Capital expenditure of NT$ 5,496 million. Annual bit shipment increased by low-teens percent year-over-year.
Nanya Technology has successfully developed core cell technology for the 10nm class DRAM process, which will enable sustainability of its DRAM products for at least 3 generations. The lead products of Nanya’s first generation of 10nm class process technology will be 8Gb, DDR4, LPDDR4 and DDR5, all of which will use Nanya’s proprietary design and process platform, with piloting scheduled to start in the second half of 2020. At the same time, the second generation of Nanya 10nm class process technology has now entered the developmental stage and is expected to be introduced into piloting before 2022.
Nanya continues to focus on the development of its intellectual property. Drawing on more than 20 years of R&D experience, and internal training, Nanya has established R&D teams capable of developing new process and product technology independently, and has to date accumulated 4,198 patents. The company is committed to continuing to improve its competitiveness for the long run with new and innovative technologies.
* EBITDA = Operating income + Depreciation & Amortization Expenses
** EPS is based on weighted average outstanding shares of 3,053M
*** BVPS is calculated based on 3,053M outstanding shares after deduction of NT$ 7.11 cash dividend
* Note : The earnings per share calculations are based on weighted average outstanding shares of 3,045 million
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