DRAM price weakness drags Q1 sales down at Hynix
Peter Clarke
EE Times
(05/04/2005 10:26 AM EDT)
LONDON — Sales revenue dropped at Hynix Semiconductor Inc. (Seoul, South Korea) in the first quarter of 2005, due to weakness in DRAM prices and the strength of the Korean currency against the U.S. dollar, the company said.
Revenue for the first quarter was 1,284 billion won (about $1.29 billion), operating profit was 299 billion won (about $300 million), which represent sequential declines of 4 percent and 29 percent respectively, while net income was 317 billion won (about $320 million), which is an increase of 70 percent sequentially, the company said.
Hynix said it achieved consolidated revenue of 1,270 billion won (about $1.28 billion) and operating profit of 321 billion won (about $322 million) which are down by 12 percent and 30 percent respectively from the previous quarter's revenue of 1,450 billion won (about $1.46 billion) and operating profit of 459 billion won (about $461 million). The company also recorded net income of 321 billion won (about $322 million) for the first quarter which is a 53 percent increase from the previous quarter's 209 billion won (about $210 million).
The sequential decrease in the revenue and operating profit was mainly due to a strong price decline in DRAM market that could not be completely offset by increased bit growth and reduced unit cost. In addition, weakness of the U.S. dollar against the won had a negative impact on the overall revenues and profits. However, flash sales increased significantly, the company said.
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