Macronix net profit down 18 percent

LOW-MARGIN CHIPS: Business from Japan’s Nintendo was lower than expected, the company said, adding that it is in talks with its client to digest a glut in inventory

Taipei Times
Date: Oct 25, 2018
By: Lisa Wang  /  Staff reporter

Macronix International Co (旺宏電子), the world’s biggest NOR flash memory chipmaker, yesterday said that its net profit last quarter fell 18 percent from the previous quarter, while gross margin dipped due to a higher inventory write-off and increased shipments of lower-margin memory chips to Nintendo Co.

Net profit last quarter fell to NT$1.92 billion (US$62.04 million) from NT$2.33 billion in the third quarter of last year, with earnings per share of NT$1.05, down from NT$1.28 a quarter ago.

“The third-quarter net profit slightly lagged behind our expectations, as business from Nintendo was a bit lower” than expected, Macronix chairman and chief executive officer Miin Wu (吳敏求) told an investors’ teleconference.

Inventory, most of which were prepared for Nintendo for the holiday shopping season, last quarter spiked 20 percent to NT$17.16 billion from a quarter ago, the company’s financial statement showed.    [FULL  STORY]

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