SK Hynix Inc. Reports Fiscal Year 2017 and Fourth Quarter Results
Seoul, January 25, 2018 – SK Hynix Inc. (or ‘the Company’, www.skhynix.com) today announced financial results for its fiscal year 2017 and fourth quarter ended December 31, 2017. The Company reported record-high annual and quarterly revenue, operating profit, and net income.
The Company’s consolidated sales of fiscal year 2017 totaled 30.1 trillion won, while operating profit amounted to 13.72 trillion won, and net income was 10.64 trillion won. Operating margin for the year was 46% and net margin was 35%.
The consolidated fourth quarter revenue was 9.03 trillion won, while operating profit amounted to 4.47 trillion won with operating margin of 49%. Net income for the quarter was 3.22 trillion won.
Last year, overall memory demand, particularly for server products, rapidly increased due to the worldwide growth of Internet data centers, while technology migration challenges and higher CAPEX burdens for manufacturers have limited the growth of overall memory supply. Favorable market conditions continued during the fourth quarter, thanks to strong demand for server products and price hikes for mobile products.
Quarter-over-quarter, DRAM bit shipments grew by 3% and the average selling price by 9%. For NAND Flash, the bit shipments rose by 16% thanks to the growing demand for mobile products, and the by average selling price increased 4% due to the price increase of mobile products, such as MCP.
SK Hynix will meet growing market demand by expanding new process technology mostly in server and SSD products. The Company will expand 1Xnm DRAM, which it has started mass producing for PCs in the fourth quarter of last year, to mobile and server products. In addition, SK Hynix will deliver new products, such as HBM2 and GDDR6, to broaden its portfolio. The Company will also pave the way for its full-fledged entrance to the enterprise SSD market by increasing the proportion of 72-layer 3D NAND, and expand the sales of new NAND solutions, including UFS, to respond to the mobile market.
So SK Hynix says NAND flash pricing went up last quarter but Katy Huberty came out two months ago saying that NAND prices were falling and continue to fall causing WDC to go from $92 a share to $78 a share. Great, just great! Hopefully tomorrow will be one more data point that continues WDC on its upward trajectory so far this year. By the way there was also a blog post that was bullish on disk drives this morning in Barrons......
barrons.com
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