Seoul, April 26, 2007
hynix Semiconductor Inc. (‘hynix’, ‘the Company’, www.hynix.com) today announced the earnings results for its first quarter 2007, ended March 31, 2007. The Company recorded the consolidated (which is the consolidation of the Company and its overseas subsidiaries) revenues of 2.45 trillion won which is a 6% decrease compared to previous quarter’s 2.61 trillion won, but an increase by 69% from 1.44 trillion won in the same period last year.
Such deterioration in the sales was mainly due to the sharp decline in the average selling prices of both DRAM and NAND flash memory. The price of DRAM products dropped by 27% quarter-on-quarter, but the decline was completely offset by 45% of bit growth, consequently increasing DRAM revenue by 4% sequentially. Fast ramp up of our 12” fabs, capacity shift from NAND flash to DRAM, productivity improvement, and the smooth transition to 80nm technology, all contributed to more than expected DRAM bit growth in the first quarter. For NAND flash, however, the revenue was decreased by 42% as a result of the severe sequential price drop of 44% without any volume growth. The reason for the flat bit growth was primarily due to the capacity shift from NAND to DRAM during the quarter and some delay of 60nm technology.
First quarter operating profits recorded 446 billion won, down by 48% quarter-on-quarter with 18% of operating profit margin, but an increase by 24% from 360 billion won in the same period last year. Net profits for the first quarter recorded 429 billion won with 18% of net profit margin, sustaining 15 consecutive quarters of profits since the third quarter of 2003. Adding the depreciation and amortization expenses to the operating profits, EBITDA came to 935 billion won with EBITDA margin of 38%.
Meanwhile, consolidated cash and short-term financial instruments decreased by 98 billion won sequentially to 2.06 trillion won, and the total debt increased by 155 billion won to 3.57 trillion won at the end of the first quarter. As a result, debt to equity ratio stayed flat at 39% and net debt to equity ratio came up to 16%. Capital spending, including China JV, during the first quarter was 1.5 trillion won, which is approximately 35% of the planned capital spending of 4.4 trillion won for 2007.
Please note that the financial results discussed herein are preliminary and speak only as of March 31, 2007. 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.
