Seoul, April 29, 2004
hynix Semiconductor Inc. (‘Hynix’ or ‘the Company’) today announced the earnings results for its first quarter of 2004, ended March 31, 2004.
The Company, in parent basis, recorded total revenues of 1,297 billion won for the quarter, an increase of 11% sequentially from 1,170 billion won in the previous quarter. Memory sales was up by 12% quarter-on-quarter contributing 82% (DRAM: 80%, SRAM / Flash: 2%) to the total revenue and non-memory sales was up by 7% contributing 18% to the total revenue. The sequential growth in sales was mainly attributable to the stable DRAM price throughout the period and to the volume increase of memory products. Utilization rate increase of foundry capacity and the demand increase in LCD Driver ICs and CMOS Image Sensors also attributed to the growth of non-memory sales.
Gross profit for the first quarter increased by 29% to 468 billion won from 362 billion in the previous quarter and the operating profit increased by 51% to 291 billion won from 193 billion won. Such improvement in profitability was mainly attributable to the overall favorable semiconductor market condition, cost reduction beyond the Company’s anticipation due to more than expected production volume increase and yield improvement, and increased sales portion of the value added products. In addition to the substantial growth in operating income, the Company recorded noticeable ordinary profit of 351 billion won in the first quarter, turning black from the loss of 881 billion won in the previous quarter. On the contrary to the substantial losses the Company had recorded for the previous quarter, no significant one-time loss was incurred in the first quarter, as the Company has gone through the most of the restructuring processes by 2003.
The consolidated revenues which include the results of overseas subsidiaries were 1,350 billion won with 380 billion won of operating profit for the first quarter. The result in the previous quarter was 1,244 billion won of revenue with 247 billion won of operating profit. The consolidated ordinary income and net income have also turned to profits of 383 billion won from 862 billion won losses in the previous quarter. Going forward, the Company plans to generate stable profits regardless of the fluctuative market condition by making every effort to improve its cost structure and product portfolio.
