Seoul, Feb 19, 2004
hynix Semiconductor Inc. (‘hynix’ or ‘the Company’) today announced the earnings results for its fourth quarter of 2003, ended Dec 31, 2003.
The company, in parent basis, had total revenues of 1,170 billion won for the quarter, an increase of 18% sequentially from 991 billion won in the third quarter of 2003. The sequential growth in sales was mainly attributable to the increase of DRAM shipments and the portion of ‘premium products’. The improved semiconductor market condition also pulled up the operational results of System IC business, the non-memory business that hynix runs. In the fourth quarter the sales volume of System IC business increased approximately 30% compared to the previous quarter, which also contributed to the increase of hynix’s sales. The sales of memory products constituted 81% (DRAM: 78%, SRAM/Flash: 3%) of the total revenues and System IC contributed 19% in the fourth quarter.
In the fourth quarter, hynix generated 330 billion won of gross profit, which is a substantial improvement compared to 152 billion won of profit in the previous quarter. In the operational level, the Company turned to profit of 158 billion won from 21 billion won of loss in the third quarter. Those improvements were mainly attributable to the improvement of productivitiy, which consequently improved hynix’s cost competitiveness and profitabilities.
In terms of sales, hynix was able to enhance its profitabilities by maintaining the high sales portion for major OEM customers which provided us with the stabilized position in the sales operation.
Despite the operational progress, hynix resulted in the ordinary loss and net loss of 830 billion won. This was mainly because the Company reflected the substantial amount of non-recurring expenses which was mainly induced by the Self-Rescue Plan for the business normalization.
The amount totaled 1,028 billion won and it was declared as non-operating expenses, which included the estimated loss from the sales of System IC business and the impairment loss of PP&E, etc.
The consolidated revenues which include the results of overseas sales subsidiaries were 1,244 billion won with 219 billion won of operating profit in the fourth quarter. The result in the previous quarter was 1,081 billion won of revenue with 94 billion won of operating profit. The consolidated ordinary income and net income have also turned to loss of 803 billion and 809 billion won respectively. It was 103 billion won of profit in the previous quarter for both ordinary income and net income.
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This release includes a summary of the unaudited results of hynix Semiconductor Inc. and its overseas subsidiaries for the fourth quarter of 2003. For more up-to-date information on hynix, please visit our website at www.hynix.com
