A-Data Announces Record March Revenue and Confirms Minimum NT$5 Cash Dividend
9 April 2025 · Uncategorized ·
Source: · https://finance.technews.tw/2025/04/07/adatas-march-revenue-reaches-11-month-high/
Driven by rising memory spot prices and increased customer orders, Taiwanese DRAM module manufacturer A-Data Technology reported a March revenue of NT$3.74 billion (approximately USD $128 million), the highest in nearly eleven months.
Chairman Chen Libai stated that the company has secured procurement arrangements with full supplier support amidst rapidly increasing DRAM and NAND Flash spot prices. Lower-cost inventory is expected to arrive from April, which should meet expanding customer demand and sustain business growth momentum simultaneously.
Chen further noted that second quarter memory price increases are well supported by market conditions; supply and demand trends indicate an upward trajectory. With global AI applications anticipated for earlier implementation than previously projected, original equipment manufacturers (OEMs) have already announced record-breaking orders for high-margin HBM products since last year. Furthermore, the rapid decline in edge-AI hardware costs has created a widespread environment where industries are compelled to adopt AI solutions. This trend is further amplified by the anticipated launch of new AI PCs and smartphones in the second half of this year, which will feature significantly larger memory capacities, driving increased demand for traditional memory products.
With existing production capacity focused on maximizing profits, coupled with more proactive inventory strategies from channel partners and OEMs, traditional memory supply has become relatively tight. This situation allows upstream manufacturers to raise prices considerably, signaling an end to the DRAM and NAND Flash industry's adjustment period as price growth trends are confirmed.
Consistent with its tradition of maintaining a minimum annual profit distribution rate of 50%, A-Data’s EPS for 2024 has reached NT$9.25 (approximately USD $0.31). Chen Libai announced that he will recommend the board distribute at least NT$5 in cash dividends per share, aiming to reward shareholders' long-term support and fund business expansion needs.
Benefiting from both rising memory prices and increased customer orders, A-Data’s March revenue rose by 11.98% month-over-month to NT$3.74 billion (approximately USD $128 million). DRAM module sales surged significantly, reaching NT$2.35 billion—a rise of over 30%, the highest level since September 2018 and representing a substantial 62.65% share of total revenue. SSD product revenues accounted for another 25.61%, while memory cards, USB drives, and other products contributed an additional 11.74%.
In the first quarter (Q1) of this year, A-Data’s consolidated revenue reached NT$9.9 billion with a sequential increase of 1.11%. DRAM modules accounted for approximately 56.47%, SSDs represented around 30.55%, and memory cards, USB drives, and other products comprised the remaining 12.98%.
(Image source: A-Data provided)
Chairman Chen Libai stated that the company has secured procurement arrangements with full supplier support amidst rapidly increasing DRAM and NAND Flash spot prices. Lower-cost inventory is expected to arrive from April, which should meet expanding customer demand and sustain business growth momentum simultaneously.
Chen further noted that second quarter memory price increases are well supported by market conditions; supply and demand trends indicate an upward trajectory. With global AI applications anticipated for earlier implementation than previously projected, original equipment manufacturers (OEMs) have already announced record-breaking orders for high-margin HBM products since last year. Furthermore, the rapid decline in edge-AI hardware costs has created a widespread environment where industries are compelled to adopt AI solutions. This trend is further amplified by the anticipated launch of new AI PCs and smartphones in the second half of this year, which will feature significantly larger memory capacities, driving increased demand for traditional memory products.
With existing production capacity focused on maximizing profits, coupled with more proactive inventory strategies from channel partners and OEMs, traditional memory supply has become relatively tight. This situation allows upstream manufacturers to raise prices considerably, signaling an end to the DRAM and NAND Flash industry's adjustment period as price growth trends are confirmed.
Consistent with its tradition of maintaining a minimum annual profit distribution rate of 50%, A-Data’s EPS for 2024 has reached NT$9.25 (approximately USD $0.31). Chen Libai announced that he will recommend the board distribute at least NT$5 in cash dividends per share, aiming to reward shareholders' long-term support and fund business expansion needs.
Benefiting from both rising memory prices and increased customer orders, A-Data’s March revenue rose by 11.98% month-over-month to NT$3.74 billion (approximately USD $128 million). DRAM module sales surged significantly, reaching NT$2.35 billion—a rise of over 30%, the highest level since September 2018 and representing a substantial 62.65% share of total revenue. SSD product revenues accounted for another 25.61%, while memory cards, USB drives, and other products contributed an additional 11.74%.
In the first quarter (Q1) of this year, A-Data’s consolidated revenue reached NT$9.9 billion with a sequential increase of 1.11%. DRAM modules accounted for approximately 56.47%, SSDs represented around 30.55%, and memory cards, USB drives, and other products comprised the remaining 12.98%.
(Image source: A-Data provided)