SK Hynix posts second straight quarterly profit

SK Hynix, the world's second-largest DRAM maker, has posted its second straight quarterly profit in the fourth quarter of 2012.

Net profits in the quarter ended December 31 came to KRW164 billion (US$151 million), compared to profits of KRW2 billion in the prior quarter and losses of KRW240 billion a year ago, Hynix disclosed. The firm credited the sequential profit growth to the strengthening Korean currency that helped reduce the amount of Hynix's dollar-denominated debts.

Hynix announced that consolidated revenues for fourth-quarter 2012 increased 12% on quarter to KRW2.72 trillion. DRAM bit shipments grew 28% sequentially in the fourth quarter, while ASPs fell 10%. For NAND flash, bit shipments increased 19% on quarter with ASP rising 6%.

Hynix indicated that strong demand for mobile and server profits, as well as increased sales of chips used for low-cost tablets, led to the sequential rise in its DRAM bit shipments during the fourth quarter. However, the ASP decline was caused by weak demand for PCs, the firm added.

Hynix also revealed that sales of mobile DRAM chips accounted for 40% of its overall DRAM revenues in the fourth quarter. Meanwhile, the firm has improved significantly yields at its 20nm-class process technology for the manufacture of DRAM chips.

Thanks to process technology migration and increased sales of premium DRAM and NAND solution products, Hynix swung to operating profits of KRW55 billion in the fourth quarter from the previous quarter's loss of KRW24 billion, the firm noted.

Hynix indicated that it will start mass producing mobile DRAM chips using 20nm-class process technology, and step up efforts to develop NAND chips using a newer 10nm-class process, as well as 3D NAND flash devices, in 2013.

For all of 2012, Hynix reported net losses of KRW159 billion on consolidated revenues of KRW10.2 trillion.