– hynix’s memory sales has increased thanks to the company’s effort to increase sales of premium products
Seoul, March 3, 2005
hynix Semiconductor Inc. (‘hynix’ or ‘the Company’, www.hynix.com) today announced the earnings results for its fourth quarter of 2004, ended December 31, 2004.
The Company recorded the consolidated revenue of 1,450 billion won and operating profit of 459 billion won which are down 9% respectively from the third quarter’s revenue of 1,598 billion won and operating profit of 504 billion won. Such decline in the revenue and operating profit was mainly due to the disposition of the System IC business which had contributed 17% to the third quarter’s sales, and weak US dollar against Korean won.
Nevertheless, hynix’s memory sales has actually increased by 10% compared to the previous quarter, thanks to the company’s effort to increase sales of premium products and better than expected DRAM bit growth.
The company also recorded net income of 208 billion won for the fourth quarter, after reflecting net non-operating expense of 293 billion won which include large items such as gain from the System IC business transfer, US anti-trust related provision, and loss from foreign currency transaction and translation.
Meanwhile, the company reported more than 800 billion won of debt reduction during the fourth quarter, as the company had transferred some of the debt to MagnaChip (former System IC business of hynix) in transaction of the business, and repaid some of the debt in advance to maturity with the cash from the sale of this asset.
Therefore, total balance of the interest-bearing debt and net debt as of the 2004 year-end is approximately 2 trillion won and 1 trillion won, respectively. In parent basis, revenue for the fourth quarter was 1,342 billion won, operating profit was 420 billion won, and net income was 211 billion won.
For the 2004 year as a whole, hynix has reported a record high figure of more than 2 trillion won of operating profit, and thus proved not only the company’s competitiveness over its overseas peers but also that the company has approached one step further toward to become the world’s leading memory semiconductor company.
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Please note that the financial results discussed herein are preliminary and speak only as of December 31, 2004. 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 Korean Securities and Exchange Commission. 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.
