Accounting, DRAM price rise puts Hynix in profit
Big operational loss though
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. ®