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SK hynix swings to black in Q2

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(Globalpost/GlobalPost)

SEOUL, July 25 (Yonhap) -- SK hynix Inc., the world's No. 2 computer memory chip maker, said Thursday it returned to profit in the second quarter from a year earlier on the back of an improved product mix.

Net profit reached 946 billion won (US$846 million) in the April-June period, reversing from a loss of 53.3 billion won the previous year, SK hynix said in a regulatory filing.

Revenue jumped 49.4 percent on-year to 3.93 trillion won in the second quarter. SK hynix said it posted an operating income of 1.11 trillion won in the period.

The stronger bottom line was attributed to an increase in demand and solid sales of specialty DRAMs and NAND flash solution products, it said.

Shares of SK hynix were trading at 28,700 won on the Seoul bourse as of 10:10 a.m., up 0.53 percent from Wednesday's close.

SK hynix, which was taken over last year by South Korea's energy and telecom conglomerate SK Group, competes with Samsung Electronics Co. and Toshiba Corp. SK hynix reportedly supplies mobile chips to Apple Inc. as well as to other companies.

The chipmaker said tight supplies of DRAM for PCs led to an increase in their prices, which helped it log good business results in the second quarter.

"During the quarter, DRAM shipment improved more than expected due to increased demands of the mobile DRAM and server products for data centers. Also, due to the suppliers' transition to the mobile products, the average selling price of PC DRAM climbed up and that of specialty DRAM stabilized," SK hynix said in a statement.

According to SK hynix, its DRAM shipment increased 20 percent on-quarter and the average selling price also rose 16 percent. For NAND Flash, the shipment increased 29 percent and the average selling price also rose 5 percent, it said.

SK hynix said prices of DRAM for PCs will continue to rise into the third quarter, but it is unclear if their upward progress will continue into the fourth quarter of the year.

The chipmaker said supply of mobile DRAM will exceed that of PC DRAM next year.

SK hynix said it spent a total of 1.5 trillion won in upgrading its facilities in the first half of the year, about 40 percent of which was for NAND flash memory chips.

For the year, it plans to invest around 3 trillion won.

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