ProMOS still unprofitable, plans fundraising - ResearchInChina

Date:2011-05-06liaoyan  Text Size:

DRAM maker ProMOS Technologies has reported net losses of NT$4.26 billion (US$149 million) on revenues of NT$4.05 billion for the first quarter of 2011. Losses remained high compared to losses of NT$4.76 billion in the prior quarter and NT$3.23 billion a year ago.

ProMOS swung to net losses in the second quarter of 2007, and has remained unprofitable since.

ProMOS had accumulated losses of NT$22.11 billion as of March 31, 2011. Its net worth per share has slipped below NT$5, and the company will see its stock downgraded to the full-cash delivery category starting May 6.

ProMOS said its board of directors has passed a proposal to raise new funds via private placement. The board decided to issue up to 3.5 billion preferred shares, and also approved the issue of up to 1.5 billion shares of common stock, subject to approval by shareholders at a general meeting slated for June 10.

ProMOS said the planned fund-raising is aimed at strengthening the company's financial structure and competitiveness by bringing in new strategic partners.

In October 2010, ProMOS managed to resume trading under normal conditions on the Taiwan Stock Exchange (TSE) following measures to reduce its capital. The company had fallen into the full-cash delivery stock category since February 2009 due to its failure to settle ECB issues on schedule.

ProMOS shares closed at NT$1.23 on May 5, down NT$0.09.

2005-2011 www.researchinchina.com All Rights Reserved 京ICP备05069564号-1