SK Hynix: Fiscal 2Q14 Financial Results

SK Hynix Inc. announced financial results for its second quarter 2014 ended June 30, 2014.
 
The consolidated second quarter revenue was 3.92 trillion won risen 5% from 3.74 trillion won of the previous quarter.

It was thanks to smooth technology migration of DRAM and NAND flash as well as revived demand for the mobile products.
 
Operating profit for the quarter amounted to 1.08 trillion won with operating margin of 28%, which went over 1 trillion won for the second consecutive quarter. In consequence, the company has gained the record high accumulated 2.14 trillion won for its half-yearly operating profit. Net income totaled 674 billion won with net margin of 17% reflecting income tax expenses.
 
Quarter-over-quarter, DRAM bit shipment increased 13% and the ASP decreased 5%. The shipment increased more than originally planned thanks to expanded proportion of 20nm class process technology.
 
For NAND Flash, the bit shipment rose 54% but the ASP dropped 19%. The shipment grew up due to expanded portion of 1Xnm and restored demand for the mobile products.
 
In the latter half, SK Hynix will constantly increase the proportion of 2Ynm DRAM to improve its cost competitiveness and organize flexible product portfolio according to the market situation to maximize the profitability. For NAND Flash, the company is to expand the portion of 1Xnm in applications such as mobile and SSD. Also, it will supply samples of TLC and 3D products after completing the development of those within the year while consolidating its competitiveness in NAND based solutions.