Seoul, October 18, 2007
hynix Semiconductor Inc. (‘hynix’, ‘the Company’, www.hynix.com) today announced the earnings results for its third quarter 2007, ended September 30, 2007. The Company recorded the consolidated (which is the consolidation of the Company’s semiconductor operations) revenues of 2.44 trillion won which is 30% growth compared to previous quarter’s 1.87 trillion won, and 24% growth from 1.97 trillion won in the same period last year.
The increase in sales was primarily attributable to the improved pricing environment owing to seasonal demand for both DRAM and NAND flash in the earlier part of the quarter as well as the Company’s strategical movements to mitigate the rapid price drop that happened during the later part of the quarter. Such strategical movements include product mix shift to premium products such as graphics and mobile and larger sales exposure to long-term contract customers. As a result, the Company’s average selling price for DRAM increased 3% quarter-on-quarter. In addition, the Company achieved 17% quarter-on-quarter bit growth supported by the strong demand from the PC OEMs. For NAND flash, the Company achieved 92% of bit growth which was driven by the strong demand in the segments of video capable MP3 players and mobile phones that require high density NAND flash. Nonetheless, such growth in bits was partially offset by 6% drop in the average selling price.
Third quarter operating profits more than doubled to 254 billion won from previous quarter’s 109 billion won. It is an improvement by 133% sequentially but a drop of 44% compared to the same period last year. Net profits for the third quarter recorded 170 billion won with 7% of net profit margin, sustaining 17 consecutive quarters of profits since the third quarter of 2003. Adding the depreciation and amortization expenses to the operating profits, EBITDA came to 882 billion won with EBITDA margin of 36%.
Meanwhile, consolidated cash and short-term financial instruments decreased by 576 billion won sequentially to 1.2 trillion won, and the total debt increased by 240 billion won to 4.4 trillion won at the end of the third quarter. As a result, debt to equity ratio and net debt to equity ratio showed 46% and 33%, respectively.
Please note that the financial results discussed herein are preliminary and speak only as of June 30, 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.
