SK Hynix: Fiscal 4Q14 Financial Results

(in KRW billion)	4Q13	4Q14	FY13	FY14
Revenue	3,368	5,148	14,165	17,126
*Growth*		53%		*21%*
Net income (loss)	789	1,624	2,873	4,195

SK Hynix Inc. announced financial results for its fiscal year 2014 and fourth quarter ended December 31, 2014.

The company set record highs for both yearly and quarterly results.

The company’s consolidated sales of fiscal year 2014 totaled 17.1 trillion won while operating profit amounted to 5.1 trillion won and net income was 4.2 trillion won. The company has reported all-time high annual results for two consecutive years. Operating margin for the year was 30% and net margin was 24%.

The company increased its year-on-year revenue by 21%, the operating profit by 51% and the net income as much as 46%. Stable market environment helped as well as the company enhanced profitability in its products portfolio and cost competitiveness through process technology migration.

Consolidated fourth quarter revenue was 5.1 trillion won while operating profit amounted to 1.67 trillion won with operating margin of 32%. Net income for the quarter was 1.62 trillion won with net margin of 32%. The operating profit rose 28% quarterly as the company improved the profitability in DRAM and NAND Flash product groups.

Quarter-over-quarter, DRAM bit shipment increased 18% but the ASP dropped 3%. The shipment grew as the company elevated its portion of 2ynm DRAM to high-40% as well as its sales in PC and server DRAMs which drew steady demand.

For NAND flash, the bit shipment increased 30% but the ASP dropped 8%. The shipment rose owing to grown demand according to releases of new mobile gadgets and expanded proportion of 1xnm NAND Flash.

SK Hynix will mass produce 2znm DRAM within the first half of this year to continue to strengthen the cost competitiveness. Also, the company is to preemptively respond to DDR4 adoption mainly in server and mobile DRAMs by expanding its DDR4 portion to 50% in those DRAM segments by the end of the year.

For NAND Flash, SK Hynix will mass produce TLC products in a full-scale within the first half and increase sales of NAND application solutions to enhance the profitability. Plus, the company plans to secure its productivity in 3D NAND flash in the latter half to get ready for upcoming market demand.