Elpida reports low Q1 earnings

Elpida’s Q1 2011 financials will not please, with the DRAM company posting a net loss within the first three months of the year.

The company announced a net loss of ¥8.20 billion ($101.2 million) for this period, a deep decline from the ¥33.7 billion ($415.5 million) a year earlier. It blamed the loss of earnings on a decline in the prices of its PC memory chips,  as well as the shortage of supply in chips due to the Japanese earthquake.

The company also reported an operating loss of ¥5.24 billion ($64.6 million)  for the quarter. This was way down from the profit of ¥37.8 billion ($466 million) a year earlier.

From March 2010 to March 2011 the company also saw a 29 percent drop in net profit to ¥3 billion ($36.99 million) from ¥3.09 billion ($38 million)

However, there was some positive news with shipments, seeing a 33 percent year-on-year growth within the period. Boosted by this climb, the company said that it would now work to increase growth to 50 percent or more this year.

That said, it also admitted that the average selling price was down 12 percent as volumes dropped due to a reduced number of wafer starts since November 2010.