Phison's third quarter revenue hits new high

Nand Flash control IC manufacturer Phison announced its operating results for September 2019 on the 7th, with consolidated revenue of NT$4.058 billion (same unit below), a monthly decrease of 4.06% and an annual increase of 13.96%; the third-quarter revenue of NT$12.394 billion set a record high for a single quarter, a quarterly increase of 26.72% and an annual increase of 12.67%.

Looking ahead, Phison expects that after a sharp rise in NAND Flash prices in July, the current NAND factory prices will continue to strengthen due to the release of new models by major international mobile phone manufacturers in September. In addition, system manufacturers are expected to launch a new wave of replenishment from October in response to the year-end sales peak season and the US tariff issue. In other words, it will also stimulate NAND demand and prices to continue to grow until the end of the year, which is expected to positively contribute to Phison's fourth-quarter revenue.

Phison's cumulative consolidated revenue from January to September was 31.52 billion yuan, a year-on-year increase of 2.79%. The company pointed out that this showed that the continued recovery in industry demand was in line with expectations, and global customers continued to prepare for the peak season demand in the second half of the year.

The company said that compared with the same period last year, total memory module shipments in September grew by 15%, total solid-state drive (SSD) and eMMC finished product shipments grew by 80%, and total memory bit count continued to double at a high growth rate of 105% year-on-year.

In addition, the long-term industrial control high-end memory module revenue in September increased by 40% compared with the same period last year, and the industrial control revenue accounted for 25% of the overall revenue. In addition, the total revenue performance in September and the third quarter continued to rise steadily, indicating that the demand trend in the peak season in the second half of the year remains unchanged, and the company's high-end storage application layout continues to make positive contributions to revenue and profits.