Seoul, Oct 22, 2003
hynix Semiconductor Inc. (‘hynix’ or ‘the Company’) today announced results for its third fiscal quarter of 2003, ended Sep 30, 2003. The company had total revenues of 991 billion won for the quarter, an increase of 27% sequentially from 778 billion won in the second fiscal quarter of 2003.
The sequential growth in sales was mainly attributable to the sales increase of major products that hynix produces on the strength of the semiconductor market recovery. The average selling price of DRAMs has increased more than 20% compared to the previous quarter, substantially contributing to the performance improvement. Memory products sales constituted 83% (DRAM: 80%, SRAM/Flash: 3%) of the total revenues and System IC contributed 18% in the third quarter.
hynix generated 152 billion won of gross profit, which is an improvement compared to 69 billion won of deficit in the second quarter. Operating loss was reduced to 21 billion won in the third quarter compared to 258 billion won in the second quarter. Despite loss in operating level, hynix achieved profit in ordinary income and net income of 134 billion won compared to 530 billion won of loss in the second quarter. The main contributions to the result are ‘gain on valuation of investments using the equity method of accounting’ (124 billion won) generated from overseas manufacturing and sales subsidiaries and the reduction in ‘loss on valuation of inventories’ (53 billion won). The consolidated revenues which include the results of overseas subsidiaries are 1,081 billion won with 94 billion won of operating profit. The result in the previous quarter was 845 billion won of revenue with 183 billion won of operating loss.
The consolidated ordinary income and net income have also turned to profit of 103 billion won from 479 billion won of loss in the second quarter. The balance of consolidated cash and cash equivalents as of the end of Sep. 2003 was 353 billion won. The amount of the Company’s interest-bearing debt was further reduced to 2.6 trillion won and the consolidated interest-bearing debt balance was 3.8 trillion won.
As most of hynix’s remaining debt balance is scheduled to be matured at the end of 2006, the Company will not be burdened with debt repayment for the next several years.
Against all odds, hynix has been maintaining its utmost efforts for technology innovation and cost reduction. Going forward, the Company will further expand the adoption of its Prime-chip Technology (0.13um) and migrate to finer geometries of Golden-chip Technology (0.11um) for the enhancement of productivity and cost competitiveness.
