GOING STRONG: The memory module supplier expects limited new supply and rising demand for gaming PCs, cloud computing and data centers to fuel growth this year
Taipei Times
Date: Jun 19, 2018
By: Lisa Wang / Staff reporter
Shareholders of memory module supplier Adata Technology Co (威剛科技) on Friday approved a proposal to distribute a cash dividend of NT$6 per common share — the highest in four years, the company said.
That represented a payout ratio of 69.85 percent based on the company’s earnings of NT$8.59 per share last year. Earnings last year totaled NT$1.84 billion (US$61.33 million) — the highest since 2013.
Last year “was the longest upcycle in the history of the memorychip industry as a supply crunch of DRAM and NAND flash memory chips drove up chip prices all the way to [early this year],” Adata chairman Simon Chen (陳立白) said in the company’s annual report.
The supply and demand imbalance was attributable to increased demand from cloud computing, big data and emerging cryptocurrency mining, along with limited supply amid a bottleneck in technological upgrade, Chen said in the report. [FULL STORY]