Hynix Q2 loss narrowed on growing DRAM demand

Sales up 20 per cent

Hynix today said its losing streak continued into the second quarter of its current fiscal year, with the company seeing a net loss of KRW530 billion ($448.96 million) - rather better than the previous quarter's KRW1.047 trillion ($886.91 million).

However, its operating loss widening from Q1's KRW241 billion ($204.15 million) to KRW258 billion ($218.55 million).

Sales for the period totalled KRW778 billion ($659.04 million), up 14 per cent on the previous quarter's KRW682 billion ($577.72 million).

Hynix attributed the increase to a 20 per cent rise in DRAM shipments. However, that was offset by a "marginal" decline in its DRAM average selling price. Ongoing cost-reduction programmes and the shift to a 130nm process helped the company extract real revenue from the sales rise, despite the falling ASP.

Memory products accounted for 82 per cent of the company's business, by the way.

Despite that 20 per cent growth, Hynix still said DRAM demand was "depressed" during the quarter, thanks to the usual suspects: SARS and Iraq. However, it noted that "demand for DRAMs seems to be turning to recovery phase since the introduction of Springdale chipset by Intel in last May and price of DRAMs is steadily rising since the end of June".

Looking ahead, Hynix said: "Beginning in the third quarter of 2003, the company expects real demand to show for memory and IC products mainly due to the anticipated recovery in corporate IT spending, seasonal demand increase from back-to school demand, and steady increase in memory per system." ®