Seoul, July 31, 2008
hynix Semiconductor Inc. (‘hynix’, ‘the Company’, www.hynix.com) today announced the earnings results for its second quarter 2008, ended June 30, 2008. The Company recorded the consolidated (which is the consolidation of the Company’s semiconductor operations) revenues of 1.86 trillion won which is 16% growth compared to previous quarter’s 1.6 trillion won.
The growth came primarily from DRAM sector, which grew by 12% in bits and by 9% in average selling price. While DRAM ASP was better than our expectation, attributed to strong contract price, bit growth fell short of our previous guidance as a result of our move to increase non-PC DRAM inventory in advance to 200mm wafer fab closure and temporary production disruption caused by the power outage at our fabs in China. For NAND flash, ASP rose by 3% sequentially but the bit growth declined by 15%, owing to the production cut back from 200mm wafer capacity and to the sluggish demand.
The operating loss is 172 billion won with operating margin of negative 9%, reducing losses from 482 billion won in the previous quarter. Net loss for the quarter amounted to 711 billion won with negative 38% of net income margin. The big difference between the operating loss and the net loss was due to impairment loss of property, plant, and equipment that incurred in the process of closing 200mm wafer fab in Eugene as well as to the foreign exchange translation loss caused by weak Korean Won movement against the US Dollar.
In the meantime, our consolidated cash and short-term financial instruments decreased by 70 billion won sequentially to 1.42 trillion won. The interest-bearing debts increased by 1.26 trillion won to 6.96 trillion won at the end of the second quarter. Consequently, debt to equity ratio went up to 83% and net debt to equity ratio increased to 66%.
Please note that the financial results discussed herein are preliminary and speak only as of June 30, 2008. 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 Korea Exchange. 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.
About hynix Semiconductor Inc.
hynix Semiconductor Inc. (HSI) of Icheon, Korea, is the world’s top tier memory semiconductor supplier offering Dynamic Random Access Memory chips (“DRAMs”) and Flash memory chips for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Stock Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about hynix is available at www.hynix.com.
Media Contact
CORPORATE COMMUNICATIONS
Seong-Ae Park
Phone: +82.2.3459.5325
Fax: +82.2.3459.5333
E-Mail: seongae.park@hynix.com
