Qimonda (NYSE: QI), based in Germany said it lost 598 million euros ($879 million) in the quarter. The losses equate to 1.75 euros ($2.57) per diluted share. Last year, Qimonda posted a profit of 177 million euros, or 0.52 euros per share.
The talk on the street is that Qimonda has a bright outlook for 2008 and has taken it’s bath in red ink and is ready for recovery. Memory module original prices were in their lowest valley in mid December of 2007 while today prices have rebounded about 30% on the ultra tight market product group of the 667MHz 1GB DIMM and SODIMM. Early January prices and pick up in demand for FBDIMMs and RDIMMs has also seen prices rise above the, six feet in the dirt prices, from December 2007.
Production has been cut in factories at Qimonda as well as other chip makers and they key question is, can they continue to burn cash to compete in the market and stay alive? This question is kicked around at all DRAM OEMs these days rest assured.
- DRAMTalk.com
- Memory Market
It is a Sunday morning now and Friday trading both in the U.S. and Asia were flat but prices in the spot market remained higher then a week ago. Registered and FMDIMM demand is showing early health though as DRAM OEMs still claim that prices are on x8 products and commodity module are firming. Well… except Hynix perhaps. For key traders and module OEMs, Hynix has supported aggressive target prices as of late. They could keep the market from climbing. Qimonda, Micron and Samsung on the other hand, remain opportunistic about Q1. Dell and HP have less then two weeks of inventory on the shelf but with Chinese New Year quickly approaching, market sediment is unclear in the short term. eTT parts such as Mira seem to be soft as well in Asia, while the bright spot in the market is DDR2 800MHz.
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