Press Release

hynix Semiconductor Inc. Reports Results for the First Quarter 2001

By April 19, 2001 December 7th, 2020 No Comments

These materials are not an offer for sale of securities in the United States or any other jurisdiction. Securities of hynix may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933. These materials are not intended to be distributed in the United States. Please note that the financial results we will discuss in this conference call are preliminary, after completion of the review process for the first quarter ended March 31, 2001, our reported results could differ from those presented and discussed today. Seoul, Apr. 19, 2001 – hynix Semiconductor Inc. today reported non-consolidated revenues of KRW 1.76 trillion, down 14% from the fourth quarter of 2000 and 13% YoY (excluding the effect of discontinued divisions such as AED (Automotive Electronics Division) and Monitor Division). Recurring losses totaled KRW 460 billion which includes interest expense, foreign exchange losses and foreign translation losses. This was mainly attributed to DRAM and LCD price declines. In terms of revenue breakdown by product sector, Semiconductors accounted for 71%, Telecom 23% and LCD 6%. Revenues from Semiconductors decreased by 19% QoQ and 21% YoY to KRW 1.25 trillion due to continuing decreases in DRAM prices resulting from a market slowdown in the PC market and seasonally low demand and inventory level corrections in distribution channels. Revenues from LCD were impacted by lower TFT-LCD prices over the quarter to KRW 111 billion, down by 31% QoQ, but still up 6% YoY due to the ramp up of new LCD lines. In contrast, Telecom recorded KRW 400 billion in revenues, up by 11% QoQ and 19% YoY thanks to an improved handset sales in the export markets. However, in spite of these revenue decreases the Company showed better-than-planned gross profit and operating profit due to continuing cost reductions from migration to advanced technology, improvement productivity and stable growth of non-DRAM business such as System IC. In the first quarter, gross profit totaled KRW 355 billion and gross margin 20%. Operating profit totaled KRW 70 billion, representing 4% of total revenues compared to 11% of total revenues in the previous quarter. On the balance sheet side, the Company’s total outstanding debt was lowered to KRW 7.3 trillion, a reduction of KRW 0.5 trillion from the previous quarter through free cash flow from operations, and sales of assets. During the first quarter the Company made its best effort to smooth out liquidity issues with timely implementation of the financing activities, sales of non-performing assets and adequate trade financing arrangement from local banks. Additionally, as evidenced by the spin-off plans of the handset and ADSL business into Hyundai Curitel,Inc. and Hyundai Networks,Inc., hynix expects to continue to take an active position on financial and business restructuring to address liquidity issues and to facilitate our emergence as a renewed and refocused Semiconductor company.