Feeds

Accounting, DRAM price rise puts Hynix in profit

Big operational loss though

  • alert
  • submit to reddit

Hynix yesterday reported net third quarter income of KRW 134 billion ($113 million) despite an operational loss of KRW 21 billion ($18 million).

That compares to a net loss of KRW 530 billion ($454 million) and an operating loss of KRW 258 billion ($221 million) in the previous quarter.

The memory maker explained the discrepancy on a "gain on valuation of investments using the equity method of accounting" and a fall in its "loss on [the] valuation of inventories".

The "investments" referred to are Hynix's overseas manufacturing and sales operations, which are together worth KRW 124 billion ($105 million). Reducing the company's inventory saved it KRW 53 billion ($45 million).

Rising sales helped too. Quarterly revenues grow 27 per cent sequentially from KRW 778 billion ($667 million) to KRW 991 billion ($849 million). Hynix attributed the increase to the "semiconductor market recovery". It said DRAM average selling prices had risen 20 per cent quarter on quarter. Around 80 per cent of Hynix's Q3 sales were of DRAM products.

Hynix left the quarter, ended 22 September, with KRW 353 billion ($303 million) cash in the bank. During the period, it reduced its overall debt to KRW 6.4 trillion ($5.5 billion).

"As most of Hynix's remaining debt balance is scheduled to be matured at the end of 2006, the company will not be burdened with debt repayment for the next several years," it said. ®

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.