14 DAY TRIAL // With the economy on the mend, the IT market is actually doing quite well for itself compared to what 2009 allowed. Last year, the situation was not as difficult as that of 2008 and whatever on-year growth occurred was possible because 2008 was just that much more dismal in terms of marketing performance. Now, IT players appear to be recovering quite steadily. Transcend is one of these players and, after reporting a 10% revenue rise in June, 2010, it has now reportedly scored an even higher percentage.
Apparently, even with the rise in June, Transcend was still able to boost its revenues by 13.2%. The total was said to be of NT$2.67 billion, which is the equivalent of US$84 million. Out of those, NAND Flash products generated NT$1.49 billion, which essentially means that they account for more than half of the total, 55.9% to be exact. On the other hand, DRAM module sales slid downwards, from NT$703 million to July's NT$688 million.
The above figure implies that DRAM accounted for 25.8% of Transcend's revenues, which is quite a bit lower than June's 30%. Based on this trend, one can assume that the revenue share of NAND will continue to grow over the next months. On the other hand, Transcend expects consumer confidence in Europe to recover and for demand to pick up during the back-to-school season. This may allow DRAM to regain some of the ground it has lost. As for the portable electronics business outlet, revenues grew to NT$490 million and accounted for 18.3% of the total, compared to 16.5% during the previous month. All in all, even in spite of lower DRAM performance, Transcend did well last month.
It is unclear what Transcend expects from the entire third quarter. Though revenues fell in Q2, by 17% sequentially (NT$6.67 billion), Transcend foresees a growth for the third, but it has not disclosed any figures so far. Either way, it will depend on just how well demand picks up.