Kingston reaches second highest revenue in 2009 despite poor economy
2/8/2010 by: Anshel Sag
Kingston just reported that even though the company in 2009 faced same challenges as everybody else, they managed to achieve their second highest revenue ever with the mark hitting $4.1 Billion. This shows the slow growth and recovery from 2008 where Kingston pulled in $4 Billion down from $4.5 Billion in 2007. Kingston reported that the increase was attributed to a rise in a higher ASP, healthier demand from corporate end customers and consumers, and the company's entry into the SSD market.
The increase in revenue in 2009 marks a change from 2008 which was marred by a recessionary economy and a memory glut which helped put some memory manufacturers out of business. Kingston's constant drive towards quality and service can be partly attributed to this recovery of growth in 2009, even though it was 'only' $100 Million. To most companies, $100M is quite a bit, but when you look at the size of Kingston and their overall market share in DRAM, you see that this represents a 2.5% increase in revenue. While 2.5% may not necessarily be considered a huge number, this is still better than the negative 12% that Kingston experienced in 2008 coming from 2007.
The Kingston founders made a statement in their press release today stating, "The memory market saw some financial recovery last year like many other industries and Kingston was able to benefit from the general rise in DRAM and Flash pricing," said John Tu, co-founder of Kingston. "We also expanded our product line when we entered the SSD market at the beginning of 2009 and within 12 months, have gained a strong foothold in this burgeoning area."
"A year ago at this time, we were bracing for a bad year. Our company was lucky to catch some good breaks along the way that worked in our favor," said David Sun, co-founder, Kingston. "Together, with the support of employees, partners, vendors and customers, we were able to get through some tough times and see better days ahead. We are very happy to be where we are."
On another positive note, according to iSuppli, Kingston managed to attain a market share of 38.3% in the 3rd Party DRAM module vendor market. This was an increase of 5.5% over 2008's 32.8% and an increase of 10.8% over 2007's 27.5%. This shows that not only did Kingston manage to weather the poor economic conditions, but that they even took advantage of their position in the market and increased their market strength to over 1/3 of the entire 3rd Party DRAM Vendor market. Their ability to grab even more market share in poor economic conditions shows how resilient Kingston is regardless of the economy. This further illustrates that Kingston continues to be the world leader in DRAM module manufacturing.
Kingston, DRAM, Profit, Poor Economy, SSD, Revenue, Growth, Solid State Drive, RAM, Random Access Memory, DRAMurai, JEDEC, recession
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