Numonyx prefers gradual, not extreme, growth
By Avida Landau
TEL AVIV, April 7 (Reuters) - Newly created flash memory maker Numonyx plans to pursue gradual growth as its business strategy, and will not seek to rapidly overexpand its market share over its competitors, its chief executive said on Monday.
After a delay of a few months, Numonyx was launched last week as a joint venture owned by STMicroelectronics (STM.PA) (STM.N), which holds about 49 percent; Intel Corp (INTC.O), with 45 percent; and Francisco Partners.
"Our business model is not built upon rapid extreme growth gaining share away from other people, it's to grow responsibly and profitably from our business today," newly appointed Chief Executive Officer Brian Harrison told reporters during a visit to Israel.
Numonyx's business will focus on delivering combinations of leading NOR, NAND, and RAM memory, as well as new Phase Change Memory (PCM) technologies for devices such as mobile phones, MP3 players, digital cameras and computers.
The company has has consolidated several manufacturing facilities and will conduct most of their production in two fabrication units in Israel and in Singapore -- units previously owned by their parent companies.
"Our strategy is to realise synergies and cost reductions through the combination of these two companies and then to achieve profitability and then to grow profitably. Our strategy is not to be the biggest guy on the block," Harrison said.
Harrison said the company ultimately intends to go public, but said no time has been set for this yet, adding that the company's main focus at this time was to "develop a track record," and evaluate market conditions before such a step.
Numonyx's launch was delayed several months after having their debt financing slashed by about half due to what parent company STMicro said was significant turmoil in debt markets.
The company has received a senior loan of up to $650 million and a $100 million committed revolving credit facility. (Editing by Steven Scheer and Tim Dobbyn)
