Mar 10, 2011 08:19 GMT  ·  By

It appears that the month of February is proving to have been a fickle mistress to quite a few companies on the IT market, as Transcend and A-Data are found to have suffered declines in revenues of well over 25%.

Finances at the start of each year, especially when it comes to the month of February, often give companies headaches, so to speak.

For one, this is the slow season, since customers are not keen on buying much after the shopping season of the winter holidays.

Another reason is that February itself has fewer working days than the other months of each year.

This year, there are also some factors that have been giving players on the semiconductor industry a fairly high degree of difficulty, marketing-wise.

The DRAM sector, in other words, is posing problems, what with all the decline in ASPs (average selling prices).

To be more specific, demand for memory is very low compared to what it was some time ago and, while smartphones and tablets might benefit long-term memory prices, A-Data and Transcend, among others, have reduced their DRAM output.

That said, Transcend's revenues fell by 32.1 percent last month, to a sum of NT$1.885 billion, as opposed to February 2010, when the sum was NT$2.34 billion.

Meanwhile, A-Data saw its sales of DRAM decrease by 20%, to NT$775 million, while NAND and other non-DRAM items suffered a fall of 30%.

All in all, its February result was a 26.7% drop in revenues, meaning that, for January and February combined, there was an on-year downward slide of 29.5%.

For those that want numbers, the final sum was of NT$4.86 billion, which is the equivalent of US$165 million.

What remains is to see if things pick up at all in March and if these two companies manage to fully recover in the later parts of the year.