Adata Finds Way to Post Double Digit Revenue Growth in Disastrous DRAM Market

Posted 10/03/2011 at 8:39am | by Paul Lilly

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It was three years ago when Adata chairman Simon Chen declared the DRAM market the worst it's been in 15 years. Perhaps his early recognition of how bad things had become ultimately helped Adata weather the ongoing storm and make business decisions that, in the fourth quarter of 2011, will grow the company's revenues by double digits. How is that possible when the only thing DRAM players talk about anymore is cutting production?

Mr. Chen chalks it up in part to rising sales of products used in non-conventional PCs, DigiTimes reports. Chen says Adata's focus on server-based RAM and SSD memory products is paying off in a big way. These are higher margin products, and the strategy is working so well that Chen believes his company will once again be profitable by the end of 2011, a major accomplishment with the DRAM market struggling the way it is.

Market research firm IHS iSuppli warned at the end of August that DRAM prices are on the verge of freefalling. The outfit said "dramatic oversupply" would result in a "turbulent second half for besieged DRAM suppliers," and barely a month later Micron announced a double digit drop in DRAM revenue for its third quarter.

Image Credit: DigiTimes