Transcend Bypasses DRAM Woes with Strong NAND Sales

Had Transcend not spent the past few years diversifying its business, it might have seriously suffered because of the DRAM demand problem but, as it is, September turned out to be quite the favorable period.

Many users are probably tired of hearing about all the problems plaguing the DRAM market segment, even if the issues mean, technically, low prices (always a reason for joy).

Nonetheless, the fact is that random access memory, and semiconductors overall, are suffering from a bad case of oversupply.

Normally, one would expect this to impact company finances, and they would be right.

Transcend, however, was able to bypass the worst of it, and even rake in some profit on the side during September.

The main reasons for this were its growing stake in the industrial-use memory module market, as well as the segment of NAND Flash devices.

According to Digitimes, September brought the company NT$2.8 billion (US$91 million / 67.95 million Euro).

This was an increase of 12.8% compared to the previous month. Coincidentally, this is also the percentage of growth for the whole third quarter.

Flash drives and SD cards were specifically mentioned as responsible for the growth, as they reached the highest monthly levels recorded, so far, in 2011.

Transcend also revealed certain USB 3.0-connected hard disk drives in the past quarter (StoreJet 25A3 comes to mind), but this facet of its business did not get any mention in the report.

In a way, Transcend is at odds with how Samsung actually saw its profits slip on-year.

This one piece of good news doesn't offset the fact that consumers have lost faith in technology though.

The report does not go into details about what Transcend expects from the remaining quarter, but it is easy to assume that much of the development continues to rely on the industrial and NAND sectors.