Elpida subsidiaries Rexchip and Tera Probe return to profitability

TOKYO, JAPAN: Elpida Memory Inc. announced that two important consolidated subsidiaries, Rexchip Electronics Corp. and Tera Probe Inc., returned to profitability in the July-September quarter.

At Rexchip, improved DRAM pricing in the quarter and a higher productivity achieved by a production strategy of producing single-type products using single-process technology allowed the Taiwan-based DRAM manufacturer to find its way back to operating profitability. Further profitability in coming quarters is possible if the current DRAM pricing level remains in effect.

Tera Probe, a Japan-based probe testing company, expanded net sales in the quarter by increasing testing of Elpida's Mobile RAM, especially for smartphone and digital still camera applications, and by increasing business with other semiconductor companies, enabling it too to return to profitability. The subsidiary also benefited from strenuous efforts to boost productivity.

The turnaround in profitability at Rexchip and Tera Probe is now expected to contribute to better returns for Elpida and other shareholders of the two subsidiaries.

In mid October Elpida plans to announce preliminary consolidated financial results for its second quarter that ended on September 30, with final results scheduled for a November 5 announcement.