Qimonda delays 2008 results amid deal talks
Qimonda is to delay the filing of results for its 2008 financial year while the company holds negotiations with potential investors.
Qimonda claimed in a statement to be making progress in its discussions with several potential “strategic and financial investors”. One of them has moved to a point where it could be announced in the next few weeks, although it would remain subject to the necessary regulatory review procedures.
On Thursday, Reuters reported that the German state of Saxony, where Qimonda’s primary fabs are based, is considering investing hundreds of millions of euros in the troubled memory maker.
Because the deals might affect the value of long-term assets, Qimonda decided to delay its release of financial information and the associated conference call until mid-December. If the deals fail to go through or if the company cannot cut back on operating expenditure quickly enough, Qimonda warned that lack of cash might prevent the company from being able to operate.
Qimonda expects to announce operating results showing net sales of €476m in the fourth quarter of its 2008 financial year, an increase of 24 per cent compared with the third financial quarter of that year. Bit shipments increased, despite capacity cutbacks, as the company continued its conversion to smaller geometries.
Qimonda expects its operating and net loss to be greater than in the third financial quarter largely due to a write down on its stake in Inotera Memories. Year over year, revenues declined and operating and net loss expanded. Qimonda’s gross cash position was €432m at September 30, 2008.
“With the completion of the sale of our stake in Inotera we generated cash inflow of $400m in the first quarter of the 2009 financial year. We are focused on reducing our cash burn through our global restructuring and cost reduction program as we continue to work on potential partnerships and on further financing opportunities,” said Kin Wah Loh, CEO of Qimonda.
“Our repositioning plan is making good progress and we have reached agreement in principle with our German employee representatives. Our yield in our first months of commercial production on our 65nm buried wordline DRAM technology is very encouraging, and we have achieved first yield on our 46nm buried wordline technology ahead of schedule.”