KIOXIA Q1 Revenue Surges 31%, NAND Price Up 20%!

On May 15, KIOXIA, a prominent Japanese manufacturer of memory chips, unveiled its financial results for the fourth quarter of the fiscal year 2023 (first quarter of the calendar year 2024). The report showcased a robust 31% year-on-year surge in revenue, accompanied by the achievement of profitability for the first time in six consecutive quarters.

This exceptional performance was attributed to several key factors. Notably, KIOXIA benefited from reduced production by NAND Flash manufacturers, coupled with a resurgence in market demand and consequent price hikes. These dynamics propelled KIOXIA's revenue for the first quarter of 2024 to a remarkable 322.1 billion yen, marking the first positive growth trend in nearly seven quarters.

Furthermore, operating profit underwent a significant transformation, transitioning from a loss of 171.4 billion yen in the corresponding period last year to a profit of 43.9 billion yen. This marked the company's return to profitability after five consecutive quarters of losses. Similarly, consolidated net profit also exhibited a notable turnaround, shifting from a loss of 130.9 billion yen to a profit of 10.3 billion yen.

Despite the remarkable quarterly performance, KIOXIA's overall fiscal year 2023 witnessed a decline in consolidated revenue by 16%, amounting to 1.0766 trillion yen. Operating losses and net losses for the fiscal year stood at 252.7 billion yen and 243.7 billion yen, respectively. These figures represent the second consecutive year of losses for the company since its inception in 2017.

KIOXIA highlighted that the selling price of NAND Flash in the first quarter of 2024 witnessed a substantial increase of 15-19% compared to the previous quarter, marking the third consecutive quarter of price hikes. Additionally, NAND Flash shipments experienced a notable increase of 5-9% compared to the previous quarter.

Looking ahead, KIOXIA provided insights into market trends and future prospects. The company anticipates further normalization of customer inventory levels, which is expected to drive the recovery of demand for PCs and smartphones. Moreover, emerging trends such as On-Device AI, increased storage capacity, and the anticipated replacement demand resulting from PC operating system updates are poised to fuel future growth opportunities.

In conclusion, KIOXIA reiterated its commitment to align production with demand trends and optimize marketing expenses to sustain its positive momentum in the dynamic NAND Flash market.