The Memory Corporation says it expects to post an operating profit for the first time in three years.
Memory has now risen from the depths of financial red ink to report an expected operating profit in the second half of this year, after posting gross profits in Q1 and Q2.
Last year the company reported losses of #3.31 million with pre-tax losses standing at #1.2 million. Datrontech owns 49 per cent of Memory and embarked on a joint venture with the company to set up DTEC.
According to John Byrne, joint managing director at Vanguard Microelectronics, this was a major filip for Memory which has emerged from a financial pounding on the AIM which saw its share price plummet from 555p three years ago to 26p earlier this year.
"It's turned a corner," said Byrne, "but not as a result of standard memory products. Its strategy is good and the deal with Datrontech has been a good marriage."
Datrontech became involved with Memory at a time when it needed to boost confidence among its shareholders. As a result Datrontech's share price has grown and Memory has begun to see some financial light.
Memory Corp bought Memory Plus and a Hong Kong sourcing company, both of which have now been drafted into the overall Datrontech fold. The Hong Kong company, to be called DTEC Asia has, according to DTEC managing director Adrew Mackenzie, "put us two days ahead of the market because we don't have to rely on other companies to feed us the information."
Mackenzie added that the current upturn in the DRAM market and the fact that Memory and DTEC can draw on the overall Datrontech distribution model, ?has undoubtedly helped both companies".
While memory players have become accustomed to living in fear of short-term false growth, both Byrne at Vanguard and Mackenzie believe the market is now on the right track, due largely to Korean restructures and manufacturers such as Texas Instruments dropping out of the market.
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