SAN JOSE, Calif. -- Thanks to a rebound in DRAMs, Japan's Elpida Memory Inc. posted improved results and raised its capital spending forecast.

Elpida's 2Q net sales were 95.9 billion yen ($1.06 billion), up 32.1 percent quarter-over-quarter, but down 15.6 percent from a year ago. Net loss was 7.2 billion yen ($79.6 million) in the quarter, versus a 1Q loss of 44.4 billion yen ($490.7 million) and a year ago loss of 31.9 billion yen ($432 million).

Operating profit went from a 1Q loss of 42.3 billion yen ($467.8 million) to a profit of 0.8 billion yen ($8.8 million) in the 2Q. In the like period a year ago, the operating loss was 24.5 billion yen ($271 million).

The reversal was made possible by higher gross profit, a lowering of R&D costs through focused product development and other factors, according to Elpida (Tokyo).

Elpida has revised upward its fiscal year 2009 capital investment forecast of 40 billion yen ($442.3 million) issued Aug. 4, to 60 billion yen ($663.4 million), mainly for the purpose of investing in manufacturing equipment for 40-nm process technology.

Interest-bearing debt fell 10.8 billion yen ($110.6 million) versus end-fiscal 2008 to 556.6 billion yen ($6.2 billion). In accordance with a business restructuring plan, Elpida arranged a loan facility in September 2009 consisting of a 100 billion yen ($1.1 billon) in syndicate loan from Japanese financial institutions arranged by the company's core bank lenders and a loan of 10 billion yen ($110.6 million) from the Development Bank of Japan Inc.

The total borrowed was 110 billion yen ($1.2 billion). The company has drawn on that facility for 44 billion yen ($486.4 million) and has made scheduled debt repayments.