SEASONAL WEAKNESS: Phison’s margin was not bad given the magnitude of the fall in NAND prices, an analyst said. The company said it expects demand to recover this quarter

Taipei Times
Date: May 14, 2018
By: Lisa Wang  /  Staff reporter

Phison Electronics Corp (群聯電子), which supplies NAND flash memory controllers and modules, reported that last quarter’s net profit plunged 31 percent year-on-year due to seasonal weakness and lower prices for its products.

Net profit slumped to NT$882.3 million (US$29.63 million) from NT$1.28 billion during the same period a year earlier, marking the lowest level in 13 quarters, while earnings per share fell to NT$4.48 from NT$6.5 a year earlier, the company said on Friday last week.

On a quarterly basis, net profit contracted 31 percent from NT$1.29 billion, or NT$6.54 per share.

Gross margin for last quarter fell to 18.9 percent from 30.7 percent for the same period a year earlier, while operating margin dropped to 11.2 percent from 17.7 percent.
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