Kioxia recently announced its financial report for the 2022 fiscal year, with an annual operating income of 1,282.1 billion yen, compared with 1,526.2 billion Yen in the previous fiscal year, a year-on-year decrease of about 16%. The net loss was 138.1 billion yen and the net profit in the previous fiscal year was 105.9 billion yen.
▲ Kioxia Yokkaichi factory, picture source: Kioxia official website
In the first three months of this year, Kioxia’s operating income was 245.2 billion yen, compared with 278.2 billion yen in the previous fiscal quarter, a year-on-year decrease of about 12%. In addition to the sluggish sales of memory chips for smartphones and computers, memory for data center applications has also started destocking, and demand for memory chips has stepped on the brakes.
It is learned that this is the most serious quarterly loss since the establishment of Kioxia. The last time a quarterly loss of this scale occurred was in the second quarter of 2019 when a power outage occurred at the Yokkaichi factory, the main force. At that time, the net loss was 98.9 billion yen.
Kioxia said that although the sales unit price increased by about 20% compared with the previous quarter (October-December 2022), sluggish corporate IT investment and sluggish consumption were the main reasons for the loss. In addition, the one-off property tax recorded according to international accounting standards also had a negative impact on Kioxia’s performance.
