If analyst forecasts according to first call for earnings to the end of the year are correct, the current fiscal year to end September P/E is now at 9.1. Subtracting the cash, the P/E is 6.8. 40% of the year’s forecast earnings were booked in this quarter. The Company reaffirmed full year 2007 guidance of 55 to 65 percent bit shipment growth. The CEO noted that price per unit might decline slightly going forward, depending on the robustness of the Vista launch, and thereby return to historic norms. In any case, this forecast seems to predict continued robust top line growth.
A new fact that came up in the conference call is that Qimonda believes that is the main supplier to next generation video game consoles supplying all three - Microsoft's (MSFT) Xbox360, Nintendo's (OTCPK:NTDOY) Wii and Sony's (SNE) PS3. It’s recently signed licensing agreements might help it further penetrate this market. This area is the key to Qimonda economics as close to 60% of bit shipments and a higher percent of revenue comes from outside the PC space. The Microsoft call later this week should give further guidance regarding Vista and Xbox360.
More details on Qimonda’s quarter (subscription may be required):
Qimonda Posts 1Q Net Pft, But Sales Dn On Quarter Qimonda Swings to a Profit Qimonda 1Q EPS EUR0.52 Vs Loss EUR0.42 >QI
Disclosure: Author is long QI.