Elpida Memory has reported net losses of JPY42.1 billion (US$553 million) for its fiscal third quarter ended December 31, 2011 compared to losses of JPY29.6 billion a year ago. Consolidated revenues declined 38.4% on year to JPY59.8 billion in the quarter, due to falling chip ASPs and bit shipments as well as appreciation of the yen, according to the company.

On a sequential basis, Elpida's net sales for the October-December quarter represent a 6.6% on-quarter decrease while net losses saw slight improvement compared to losses of JPY48.9 billion in the prior quarter.

Elpida's operating losses widened to JPY43.8 billion in the third quarter of its fiscal 2011 from JPY26.9 billion a year earlier, but were narrower compared to losses of JPY44.7 billion in the previous quarter.

"Major flooding in Thailand led to short market supplies of hard disk drives and shutdowns of manufacturing sites for electronics products. Along with stagnant PC demand, this in turn brought sluggish demand for DRAM," Elpida said in a statement.

Elpida revealed that its bit shipments for fiscal third-quarter 2011 slid 4% sequentially, which failed to meet its guidance of about 5% growth. ASP for the period went down 4% on quarter and 51% on year, Elpida said.

Elpida expects its bit shipments to register sequential growth of flat to 5% in the fiscal fourth quarter ended February 2, 2012, without providing other guidance.

In other news, Elpida noted the company is in talks with Japan's Ministry of Economy, Trade and Industry (METI), the DBJ and its creditor banks about their further support measures and expects to reach some agreement by the end of March.