For months rumors have abounded regarding Elpida’s viability and plans the company has to overcome its current financial woes. Although the company has been questioned about advanced payments and loans from its customers, takeover and merger possibilities, and even government intervention, Elpida has remained silent, refusing to comment.
Today the company finally made a statement that it will be adding a note to its Q3 results and earnings report: “on Matters concerning the Assumed Going Concern.”
This statement, which looks like it was written very carefully by either accountants or attorneys, lays out the turn of events that led to this action, the work being done to keep the company afloat, and the wording of a note in the earnings report that will be used to express this situation and the possibility that Elpida finds “material doubt about its assumed going concern.”
This turn of events has been in process for a long while, and reflects the fact of life spelled out in Objective Analysis’ Brief: “Why the DRAM Market Must Consolidate,” which can be purchased for immediate download from the Objective Analysis website.
Readers are encouraged to read Elpida’s release themselves, but The Memory Guy warns that the wording can be difficult to follow:
“In conjunction with the completion of the Plan, preferred shares that contain the preferred shareholders’ right to request Elpida to acquire the preferred shares with cash consideration that were issued for the Development Bank of Japan, Inc. (“DBJ”) can be exercised by DBJ on or after April 2, 2012.”
The Memory Guy reminds readers that “Elpida” is the Greek word for “Hope,” but today there is little hope in Greece and there is little hope for Elpida.
