SK Hynix 1Q15 profits soar
SK Hynix has reported net profits of KRW1.3 trillion (US$1.2 billion) on consolidated revenues of KRW4.8 trillion for the first quarter of 2015. Profits and revenues saw on-year increases of 61% and 29%, respectively.
SK Hynix posted operating profits of KRW1.6 trillion in the first quarter, up 50% compared with KRW1.06 trillion in first-quarter 2014. Operating profit margin climbed 5pp on year to 33%.
On a sequential basis, however, SK Hynix’ net profits and revenues for the first quarter decreased 20% and 6%, respectively. Operating profits slid 5% sequentially in the first quarter, but operating margin grew 1pp on quarter.
SK Hynix attributed its sequential revenue drop to falling shipments and product ASPs as a result of seasonality. Nevertheless, operating margin stayed high thanks to “elevated cost efficiency through enhanced product portfolio and yield rate,” the company noted.
SK Hynix disclosed that its DRAM shipments and ASPs declined 5% and 4%, respectively, on quarter. Shipments were affected by weak demand for PC and consumer DRAM although demand for server DRAM counterbalanced partially, the company said.
For NAND flash, bit shipments remained stable in the first quarter, but ASPs fell 7% sequentially, the company said.
In addition, SK Hynix indicated the company will strengthen its cost competitiveness by expanding significantly the proportion of DRAM chips built using “2Ynm” class process technology. SK Hynix is also ready for mass production of DRAM built using “2Znm” process technology in the second quarter.
As for production technologies for NAND flash, SK Hynix will roll out 1Xnm TLC memory chips in the second quarter and gradually increase the manufacturing ratio of 1Xnm process technology. The company will also complete verification processes for 3D NAND products with clients through pilot-scale production within 2015.