Toshiba Memory: Fiscal 1Q19 Financial Results

Toshiba Memory Holdings Corporation (TMC) announced its 1FQ19 financial results on August 9, 2019.

• The impact of the power outage at the Yokkaichi Operations facility on 1FQ19 gigabyte shipments was limited
• ASP remains in a downtrend, but the rate of decline is easing
• More than 90% of total production (1Q, bit basis) was BiCS flash

Industry/Market Trends and Outlook
• Although NAND price declines are stabilizing, supply/demand imbalance still remains. Overall, the market expects supply and demand to normalize in 2H19. TMCHD’s view is consistent with such market expectations.
• A power outage in parts of the city of Yokkaichi on June 15 affected some operations at the Yokkaichi Operations facility. This caused a ¥34.4 billion impact on 1FQ19 operating income, and the company expects a negative impact on 2FQ19 operating income as well. Most equipment had been restored by mid-July.
• TMC formally entered into an agreement to execute capital investment on the new fab (K1) at the Kitakami plant (Toshiba Memory Iwate Corporation) in conjunction with Western Digital Corporation. It began installing production equipment at K1 from June. Construction of K1 is scheduled to be completed in Autumn 2019.
• Toshiba Memory Holdings Corporation will be renamed Kioxia Holdings Corporation effective October 1.