Hynix Semiconductor Reports Results for the 3QFY2007
(Business News, 19 Oct 2007 )
Hynix Semiconductor Inc. has announced the earnings results for its third quarter 2007, ended September 30, 2007. The company recorded the consolidated revenues of 2.44 trillion won, which is 30 percent growth compared to previous quarter's 1.87 trillion won, and 24 percent growth from 1.97 trillion won in the same period last year.
The increase in sales was primarily attributable to the improved pricing environment owing to seasonal demand for both DRAM and NAND flash in the earlier part of the quarter as well as the company's strategical movements to mitigate the rapid price drop that happened during the later part of the quarter. Such strategical movements include product mix shift to premium products such as graphics and mobile and larger sales exposure to long-term contract customers. As a result, the company's average selling price for DRAM increased 3 percent quarter-on-quarter. In addition, the company achieved 17 percent quarter-on-quarter bit growth supported by the strong demand from the PC OEMs. For NAND flash, the company achieved 92 percent of bit growth which was driven by the strong demand in the segments of video capable MP3 players and mobile phones that require high density NAND flash. Nonetheless, such growth in bits was partially offset by 6 percent drop in the average selling price.
Third quarter operating profits more than doubled to 254 billion won from previous quarter's 109 billion won. It is an improvement by 133 percent sequentially but a drop of 44 percent compared to the same period last year. Net profits for the third quarter recorded 170 billion won with 7 percent of net profit margin, sustaining 17 consecutive quarters of profits since the third quarter of 2003. Adding the depreciation and amortization expenses to the operating profits, EBITDA came to 882 billion won with EBITDA margin of 36 percent.
