Kingston Announces Record Revenue for 2010
3/16/2011 by: Anshel Sag
As many companies in the memory industry are beginning to put less focus on their memory products or completely leave the market (OCZ), Kingston is proving that they can not only exist in the market but succeed and excel above others. Kingston’s dominance of the DRAM market only appears to continue as some of their competitors leave the market and other put a focus on other components.
On Monday, Kingston announced that their revenues for 2010 hit a record $6.5B which is the highest revenue that the company has ever seen. In 2009, Kingston achieved revenues of $4.1B which at the time wasn’t far off from the company’s record of $4.5B in 2007. This represents a $2.4B increase over 2009 and a staggering 58% increase in revenue. This number is only considered to be amazing once you realize that this is being achieved by a company that is already taking in $4.1B a year. If Kingston was a publicly traded company, their stocks would be going through the roof.
Perhaps, though, one of the biggest reasons for Kingston’s success is their private status. Without having to answer to shareholders, Kingston can implement long term plans that may not benefit the company in the short-term (what many investors seem to care about) but rather in the long term. This long term thinking is what has allowed Kingston to consistently gobble up market share from their competitors even when times were tough for the world economy as well as the memory industry. The recovery of the technology sector and increased demand as well as ASPs have driven Kingston’s revenue figures through the roof and we hope to see continued success.
One of our biggest concerns for Kingston right now is actually not their performance as company, but rather the impact of the Japanese earthquake and ensuing tsunami. We hope that everyone with Kingston in Japan is safe and doing well as we know that the company does have a presence in Japan. Many of Kingston's memory IC suppliers are located in Japan and this could drive up costs for both Kingston and consumers. This will likely result in a much higher ASP for Kingston in the short term, but may cause them to sell less product as a result of shortages. Kingston released a statement regarding their status in Japan, "Our hearts are with the people whose lives have been disrupted by this terrible tragedy. Kingston has been asked by many people if our daily business has been disrupted and we can only say that Kingston is still collecting information as the situation changes constantly. Our concern right now is the safety and well-being of all of our friends, associates and their families." Hopefully everything turns out the best for everyone in the situation and everything can return back to normal.
And with that cautionary note, we look forward to seeing Kingston succeed in what appears to be a very uncertain situation for everyone in the semiconductor industry.
Kingston, Memory, RAM, DRAM, ASP, Revenue, Record, Billion
© 2009 - 2011 Bright Side Of News*, All rights reserved.