Seoul, October 30, 2008
hynix Semiconductor Inc. (‘hynix’, ‘the Company’, www.hynix.com) today announced the earnings results for its third quarter 2008, ended September 30, 2008. The Company recorded the consolidated revenues of 1.84 trillion won which is slightly lower than 1.86 trillion won in the previous quarter.
Revenues from DRAM increased with 20% bit growth and 11% drop in ASP. However, NAND flash price declined 23% with negative 14% bit growth. Although the Company attempted to cut the losses by closing down inefficient 200mm fabs, total operating costs increased due to cost related to inventory write-offs. Thus, the operating loss increased to 465 billion won from 172 billion won in the previous quarter, resulting in negative 25% operating margin.
Net loss for the quarter amounted to 1.67 trillion won with negative 91% of margin. The big difference between the operating loss and net loss is primarily due to the net foreign currency transaction and translation loss that incurred as a result of weakened Korean won against US dollar, and valuation loss of PP&E related to shut down of two 200mm fabs, M7 and M9, during the quarter.
On the balance sheet, the Company’s consolidated cash and short-term financial instruments decreased by 188 billion won sequentially to 1.23 trillion won. The interest-bearing debts increased by 881 billion to 7.84 trillion won at the end of the third quarter, largely due to substantial exposure of its foreign currency denominated debt that was affected by the weak Korean won. Consequently, debt to equity ratio went up to 109% and net debt to equity ratio to 92% from previous quarter’s 83% and 66%, respectively.
Please note that the financial results discussed herein are preliminary and speak only as of September 30, 2008. 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.
Media Contact
CORPORATE COMMUNICATIONS
Assistant Manager
Seong-Ae Park
Phone: +82.2.3459.5325
Fax: +82.2.3459.5333
E-Mail: seongae.park@hynix.com
