Seoul, October 13, 2005
hynix Semiconductor Inc. (‘hynix’ or ‘the Company’, www.hynix.com) today announced the earnings results for its third quarter of 2005, ended September 30, 2005.
The Company recorded the revenues of 1,492 billion won and operating profit of 378 billion won which are up by 21% and 77% respectively from the previous quarter’s revenue of 1,235 billion won and operating profit of 214 billion won. The company also recorded net income of 512 billion won for the third quarter which is a 115% increase from the previous quarter’s 238 billion won.
The enhancement in the operational results was primarily attributable to DRAM price increase from the seasonal demand pick-up, the sales increase in fast-growing NAND flash memory, and the unit cost reduction through continuous productivity improvement. In addition, the improved net income in the third quarter compared to the previous quarter is mainly due to the large jump in the non-operating income such as gain on valuation of investments using the equity method of accounting resulting from the profit increase at our overseas subsidiaries, and the gain on disposal of available–for–sale securities resulting from the sale of our ownership in Hyundai Autonet.
Throughout the third quarter, hynix achieved 3% and over 80% of bit growth quarter-over-quarter in DRAM and NAND flash respectively, increased its 12-inch wafer capacity (M10) to approximately 25,000 wafers per month, expanded the portion of 90nm technology for the use of DRAM production, and increased 2Gb NAND flash memory production using also 90nm technology.
Meanwhile, the consolidated revenue (which is the consolidation of the Company’s overseas subsidiaries) for the third quarter was 1,599 billion won, operating profit was 495 billion won, and net income was 529 billion won which is a sequential increase of 26%, 86% and 123% respectively. As of end of September 2005, the consolidated cash and short-term financial instruments was 814 billion won which increased by approximately 250 billion won from 564 billion won in the previous quarter.
The company’s consolidated debt level, on the other hand, has increased only by 29 billion won sequentially to 1,903 billion won. Pursuant to its business restructuring initiatives, hynix disposed most of its ownership of Hyundai Autonet to a consortium of buyers led by Hyundai Motor Company through the sale on the OTC market during the third quarter and completed the disposal of the remaining shares on the Korea Exchange most recently.
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Please note that the financial results discussed herein are preliminary and speak only as of September 30, 2005. Readers should not assume that this information remains operative at a later time. In addition, this information may include forward-looking statements that involve a variety of risks and uncertainties that could cause actual results to differ materially. For further discussion of these risks and uncertainties, readers should refer to hynix Semiconductor Inc.’s filings with the Korean Securities and Exchange Commission. This document is neither an offer to sell nor a solicitation of an offer to sell any security of hynix. hynix securities may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.
