Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen OC_Formula for the clue delivery! CTOnews.com, November 7 (Xinhua)-- Huirong technology, the main controller of NAND flash memory, reported third-quarter results with revenue of $250.81 million (currently about 1.811 billion yuan), down 1% from the second quarter and the same period last year. The gross profit margin in the third quarter is 47.6%, and the net profit after tax is $51.16 million (currently about 369 million yuan).

Gou Jiazhang, CEO of Huirong Technology, said that the PC and smartphone terminal markets are still full of challenges, especially the slowdown in SSD demand affecting SSD control chip revenue. From the beginning of the year to the present, Huirong's SSD control chip revenue is flat compared with the same period last year, of which PC OEM market revenue is up 50% compared with the same period last year, but channel market revenue is down 40%. PCIe Gen4 SSD control chips, which are mainly shipped to PC OEM, accounted for more than half of SSD revenue in the first half of this year and continued to expand in the third quarter. Although the SSD end market, including physical retail, e-commerce or system integration, is weak, it is believed that market conditions will improve in the future as NAND manufacturers have begun to release excess inventory to NAND module factories.

CTOnews.com learned that Gou Jiazhang said that Huirong's MonTitan enterprise PCIe Gen5 SM8366 SSD control chip has made important progress a few days ago. At the OCP Global Summit booth in San Jose, USA, Huirong demonstrated a layered firmware stacking design with a SSD reference design kit that has been validated by NAND partner flash memory, which is expected to be ready for sample delivery in early 2023 and enter mass production by the end of the year.

In addition, from the beginning of the year to the present, Huirong's revenue from eMMC / UFS control chips has grown by about 1/3 compared with the same period last year, and both control chips are growing, of which eMMC control chips are growing twice as fast as UFS control chips. The growth of eMMC / UFS control chips is mainly driven by cooperation with NAND manufacturers with a competitive position in the market, and module manufacturers benefit from the transfer benefits brought by the fading out of the eMMC market by some NAND manufacturers. In addition, due to the impact of product portfolio changes and price adjustments in the third quarter, overall gross margin decreased, and Huirong expects overall revenue to be flat towards the end of the year.

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