Story posted at 6:15 p.m. EST/3:15 p.m. PST, 1/14/98
Alliance trims DRAM production
but still reports $2.4 million loss
SAN JOSE--Alliance Semiconductor Corp. here today reported a net loss of
$2.4 million on net revenues of $24.8 million in the last quarter, ended
Dec. 27. The results include a $6 million pre-tax charge reflecting a
lower value on product inventories and the drop in DRAM prices.
In response to poor market conditions, Alliance said it reduced overall
DRAM production in the last three months of 1997. However, the company
did not disclose details above the levels of cutbacks in DRAM
production.
During the final quarter of 1996, Alliance reported a net loss of $1.3
million on revenues of $25.2 million. In the previous quarter, ended
Sept. 27, 1997, Alliance's losses total $4.6 million, including a $6
million inventory charge, on sales of $29.0 million.
"Alliance continued to experience severe price pressure on most DRAM
products leading to a decline in revenues from the previous quarter,"
said N.D. Reddy, chairman, president and CEO of Alliance. "Aggregate
revenues from our other product lines improved from the previous
quarter, but only modestly as customers appeared more cautious about
their inventory levels."
The cutback in DRAM production enabled Alliance to reduce its percentage
of revenues from dynamic random-access memories to 50% in the just-ended
quarter compared to 63% in the previous quarter, according to Reddy.
"DRAM pricing visibility remains limited, so we will continue to closely
monitor our product mix," Reddy added. "The company continues to develop
new products based on leading edge technologies to bring down
manufacturing costs in all of our product lines and introduce them to
market as quickly as possible."
During the quarter, alliance launched its first embedded product, the
ED3D graphics controller for 2-D and 3-D applications. The controller
contains 2-Mbytes of embedded memory. |
