DRAM maker ProMOS Technologies remained unprofitable in the second quarter of 2010, but saw net losses for the quarter narrow significantly compared to losses in the prior quarter and a year ago, according to data released by the company. Gains resulting from the sale of a wafer fab to Macronix International is the major reason for the improvement.

ProMOS in April reached a deal to sell its 12-inch fab located at the Hsinchu Science Park (HSP) to Macronix. The majority of the recognized gain, estimated at about NT$2.6 billion (US$81 million), is included in ProMOS's second-quarter financial data.

ProMOS said it will recognize the remaining NT$200-300 million in the third quarter.

ProMOS reported net losses of NT$850 million for the second quarter of 2010, compared to losses of NT$3.23 billion in the first quarter and NT$2.38 billion a year earlier. Net losses for the first half amounted to NT$4.01 billion or NT$0.55 per share, also showing improvement from losses of NT$11.14 billion or NT$1.53 a share during the same period of 2009.

ProMOS recently moved Elpida Memory's 63nm process to mass production. The ramp-up allowed it to enjoy sequential revenue growth in June and July, despite a downward price correction for DRAM memory.

ProMOS expects revenues to grow 10-20% sequentially in the third quarter, buoyed by its output growth. It did not elaborate further.