Recently, MXIC released its third-quarter revenue. According to the announcement, its combined revenue in the third quarter was still better than the second quarter, but it was significantly lower than expected. According to reports, the third quarter should have been the peak season, the performance was lower than expected due to the shortage of passive components and power semiconductors led to ODM / OEM adjustment procurement strategy.
MXIC announced that its consolidated revenue in September increased 15.9% to NT$3.749 billion, a new high in 11 months. However, the average storage price of storage last year was higher than this year, so it was down 9.7% from the same period last year. In the third quarter, consolidated revenues reached NT$10.30 billion, a 13.0% increase from the second quarter, but a 4.2% decline from the same period last year.
The third quarter is generally a period of Nintendo's massive purchases from MXIC, but this year's peak season performance is lower than expected. MXIC said that its high-end NOR Flash and SLC NAND are still in short supply in the second half of the year, but low-order NOR Flash faces competition problems. The amount of Nintendo's purchase of ROM products has also decreased, and it should be related to the impact of Nintendo's production volume on component shortages.
MXIC stated that the supply of passive components and power semiconductors will still be tight in the fourth quarter of this year, but the situation will be better than the third quarter. ODM/OEM customers' purchases are still conservative, mainly due to insufficient supply of Intel CPUs and the impact of trade wars.
