Kingston shipments up, revenues down

Kingston shipments up, revenues down

Memory manufacturer announces record shipment volume in 2008

Memory product manufacturer, Kingston, announced record numbers in total memory unit shipments in 2008 despite a decrease in revenues.

A 41 per cent increase in shipments was recorded across all Kingston product lines with global sales equating to $US4 billion, a $500 million decline from 2007 revenues.

Results were achieved amidst a worldwide overproduction of memory goods and a declining market.

Kingston co-founder, John Tu, said the company’s positive outcome was attributed to good finance and management.

“The company has financial strength,” he said. “Through the history of our company, we have never borrowed money. All growth is financed internally and we still uphold that principle. So that probably relieves the pressure that other companies might have.”

Tu also pointed to an inherent necessity for companies to upgrade equipment as a reason for Kingston’s achievement.

“People don’t spend money buying new equipment but they do need to continue with their business so they will upgrade their products and we are also in the business of upgrading,” he said.

While facing a decrease in memory products demand, Tu also claimed that the worst part of the memory market downturn is over.

“To me, there may still be a steady decrease in demand, but I can see it picking up at the end of the year or in the first quarter of next year,” he said. “The good news is the market goes into cycles and right now it is a down cycle and its tough, but we have been through that many times before. It forces our company to reflect and make changes to come out stronger and customers will benefit from that.”

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