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Taiwan's PQI to incur losses in Q1

Posted: 26 Feb 2007 ?? ?Print Version ?Bookmark and Share

Keywords:DRAM? flash memory? Power Quotient International? PQI? NAND flash?

Taiwan's Power Quotient International (PQI) may incur losses this quarter as seasonal effects will worsen market price pressure, according to company chairman Wellen Sham. Although PQI's revenue in Q1 will be better than year-ago period, incurring losses may be inevitable, the executive said.

Sham said DRAM prices will continue to decline throughout Q1 due to oversupply. NAND flash prices will also remain weak due to seasonal effects in Q1, but prices will rebound in Q2.

In Q4 2006, PQI posted $263.5 million in revenue but its net income dropped sharply at 68.5 percent q-o-q. NAND flash and DRAM accounted for 48 percent and 52 percent of PQI's output in 2006. According to the company, the ratio will tilt in favor of NAND flash this year to 55 percent, compared to DRAM's share of 45 percent.

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