Hynix Semiconductor reports results for Fourth Quarter of FY2007
(Business News, 13 Feb 2008 )
Hynix Semiconductor announced the earnings results for its fourth quarter 2007, ended December 31, 2007. The Company recorded the consolidated (which is the consolidation of the Company’s semiconductor operations) revenues of 1.85 trillion won which is 24% decrease from previous quarter’s 2.44 trillion won, and 29% decrease from 2.61 trillion won in the same period last year. Sequential deterioration in sales was mainly due to the sharp erosion in DRAM and NAND flash ASPs which dropped by 35% and 34% quarter-on-quarter, respectively, despite the partial offset by 7% of DRAM bit growth and 43% of NAND flash bit growth.
Operating loss in the fourth quarter recorded 318 billion won with operating margin of negative 17%. It is a significant decrease from 254 billion won of operating profits in the previous quarter and 858 billion won in the same time last year. Such deterioration is attributable to severe price decline in both businesses of DRAM and NAND flash and the consequent loss from inventory write-down.
With depreciation and amortization expenses of 639 billion won for the fourth quarter, EBITDA came in at 321 billion won with EBITDA margin of 17%, a decrease from 882 billion won of previous quarter, and from 1.3 trillion won of same period last year. As for the capital spending, the Company pulled-in a little over 400 billion won of capex in the fourth quarter of 2007, executing 4.8 trillion won of total capital spending for 2007.
Net loss for the fourth quarter recorded 465 billion won with negative 25% of net income margin. The difference between the operating loss and the net loss was the income tax expense of 108 billion won.
In the meantime, consolidated cash and short-term financial instruments increased by 825 billion won sequentially to 2.04 trillion won, and the interest-bearing debts increased by 701 billion won to 5.13 trillion won at the end of the fourth quarter. As a result, debt to equity ratio went up to 55% but net debt to equity ratio remained flat at 33% compared to previous quarter. The increase of cash balance and the interesting-bearing debts was mainly due to the financing through US$583 million amount of convertible notes issuance in December.
