SK Hynix: Fiscal 2Q13 Financial Results

SK Hynix Inc. announced financial results for its second quarter 2013 ended June 30, 2013.
 
The consolidated second quarter revenue was 3.93 trillion won increased 41% from 2.78 trillion won of the previous quarter due to an upward demand of specialty DRAM including mobile DRAM thanks to a favorable market environment.

Operating profit was 1.11 trillion won with operating margin of 28% since process technology migration and yield improvement had increased the profitability of all the products including DRAM, NAND flash and MCP.
 
Both the revenue and the operating profit set a record-high for the company’s quarterly results. Net income for the quarter was 947 billion won, increased 430% from 179 billion won in the previous quarter reflecting net foreign currency loss and income tax expenses.
 
Quarter-over-quarter, DRAM bit shipment increased 20% and the ASP also rose 16%. For NAND flash, the bit shipment increased 29% and the ASP also rose 5%.
 
During the quarter, DRAM bit shipment improved more than expected due to increased demands of the mobile DRAM and server products for data centers. Also, due to the suppliers’ transition to the mobile products, the ASP of PC DRAM climbed up and that of specialty DRAM stabilized.
 
For NAND flash, both the bit shipment and the ASP increased due to strong demands of eMMC and MCP and balanced supply-demand situation.
 
SK Hynix plans to strengthen its cost competitiveness by expanding its portion of 20nm class DRAM products over 50% in the third quarter and increasing the efficiency of manufacturing lines for NAND flash. The company is to expand the proportion of LPDDR3 products from the latter half and build up the competitiveness in SSD business by releasing the SSD equipped with its own controller in the third quarter.