Seoul, Korea, April 15, 2002
hynix Semiconductor Inc. (hynix, www.hynix.com) announced today that it has a recurring profit for the first quarter of 2002 as a result of a rise in DRAM prices and improved competitiveness.
The Company’s first quarter consolidated revenue is 869 billion won (parent base 823 billion won), up 34 % from the fourth quarter of 2001. Consolidated net income for the first quarter is 35 billion won ( parent base 3 billion won ) and consolidated operating profit is 145 billion won (parent base 109 billion won ). The improved financial results are attributable to the DRAM market recovery since the mid-fourth quarter of 2001 and increased demand from major PC OEM.
hynix expects to raise its profitability in the second half of 2002, as the market maintains its upwards trend throughout the year despite some short-term corrections in the second quarter. In particular, hynix has adopted conservative accounting criteria of U.S. GAAP in its Q1 2002 results, such as writing off development costs once they incurred, to ensure its accounting transparency and financial soundness. To maintain its price competitiveness, hynix completed its ‘Blue Chip’ technology project, which enables ultra-fine geometry with less than one-third the investment normally required to develop this class of technology. hynix also plans to develop 0.13 micron ‘Prime Chip’ and 0.11 micron ‘Golden Chip’ through its Blue Chip project to ensure a continuous technology platform and efficiency in investment and production.
In addition to maintain its market share of major OEM customers, hynix aggressively penetrated emerging markets, where the Company now holds unmatched market dominance. hynix also launched volume production for DDR memory chips, producing more than 10 million units per month for its major customers. With continuous cost-cutting efforts and technology innovation, hynix will maximize its profit in the improved 2002 semiconductor market.
This press release contains forward-looking statements, as defined in the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements, including, without limitation, statements relating to our capital expenditures, financing and production capacity, reflect the current views of hynix with respect to future events and financial performance. Although we have used our best efforts and relied upon sources we believe to be reliable and accurate to make reasonable forward-looking statements and future financial projections, these views are subject to certain risks and uncertainties, which could cause actual results, performance or achievements expressed or implied by these statements to differ materially from historical results or those anticipated. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release provides general information on hynix Semiconductor Inc. We advise you to check hynix’s audited financial results as filed with the Korean Stock Exchange and the Korean Securities and Exchange Commission.
