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Hynix reports results for Q1 2006

Posted: 24 Apr 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Hynix? earnings? revenue?

Hynix Semiconductor Inc. announced the earnings results for its Q1 2006, ended March 31, 2006. The company recorded the consolidated revenues of $1.53 billion which is an 18 percent decrease compared to the previous quarter's $1.86 billion, but an increase of 14 percent from $1.3 billion in the same period last year.

According to company, the decline in the sales was partly due to the strong Korean won which had appreciated by 5 percent against the U.S. dollar, amid decline in the average selling price of the its two major products, DRAM and NAND flash, due to slow seasonality, wasn't completely offset by the bit growth.

Despite of the strong price for 512Mb DDR2 during the quarter, prices of other DRAM products declined due to slow seasonal demand resulting to a decline the company's weighted average selling price to decline by approximately 9 percent. Meanwhile, Hynix's weighted average selling price for NAND flash was down by 29 percent due to slow demand across most of the NAND flash applications. As a result, revenue contribution from NAND flash has declined to 36 percent of total revenue from 40 percent in the previous quarter while DRAM has increased to 64 percent from 60 percent.

Hynix also recorded operating profit of $379 million in Q1, a 31 percent decrease from the previous quarter's $550 million which resulted in the operating margin of 25 percent. Such reduction in the profit was primarily due to the worsened profitability of NAND flash due to severe price erosion amid strong Korean won against U.S. dollar.

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