Memory Corp Plc, the Scottish technology company, has found the key to making money in the memory chip business is not to make the chips. It abandoned manufacturing a year ago in favor of sales, distribution and the development of intellectual property. The result is that it pulled back from the abyss facing so much of the industry and can boast that it will be able to break even in terms of operating profit in the fourth quarter. With ambitions to list its shares on the EASDAQ exchange, Memory has moved to quarterly reporting but, as it felt that the effort of recreating figures for a third quarter last year were not worthwhile, comparisons are impossible. But the improvement in its fortunes can be gauged from the fact that third quarter revenues of 11.3m pounds is up on the 10.1m pounds achieved in the first half and a substantial improvement on the 6.7m pounds achieved in the whole of the last financial year. However, Memory still recorded a net loss of 710m pounds in the third quarter and it is still on course to record a substantial net loss for the year. The shares, which touched a high point of 535 pence three years ago, now languish at 29.5 pence, indicating little confidence in the company’s future. But if current progress continues, it could be making money next year, which will be an achievement for anyone trading in the DRAM market.
