Chip shortage boosts earnings for flash-IC maker SST
By Bolaji Ojo
Electronic Buyers' News
(10/13/99, 11:34:06 AM EDT)
Not only did Silicon Storage Technology Inc. turn a profit during the third quarter, the company is calling the shots in its product area and warning OEMs that they could remain on allocation for the next six months as demand for flash memory continues to outstrip supply.
Yesterday, SST, Sunnyvale, Calif., which posted a loss in the second quarter and a huge loss in the year-ago period, said it earned $448,000, or 2 cents per share, in the quarter ended Sept. 30. Unit shipments were the highest in the company's history.
In the year-ago period, SST posted a loss of $7.3 million, or 32 cents per share. Revenue nearly doubled in the just ended quarter to $35.15 million from $18.14 million in the comparable 1998 quarter.
With demand for flash memory products surging, manufacturers like SST are ramping production but most admit that they are putting OEMs on allocation and expect the shortage to continue for some time. SST is adding manufacturing capacity throughout next year but said the measure will not be enough to meet immediate demand.
"The demand for our products, old and new, is extremely strong," said SST president and chief executive Bing Yeh, in a statement. "Despite the planned capacity expansion throughout next year, we expect to put our customers on allocation for a majority of our products for at least the next two quarters." |
