Hynix Semiconductor 1Q Profit Drops

By Cindy Waxer April 28, 2011

Hynix Semiconductor reports that its quarterly profit dropped a whopping 66 percent due in large part to waning sales and weakening memory chip prices. Hynix, the world's second-largest manufacturer of computer memory chips, earned 273.5 billion won ($254.9 million) in the three months that ended March 31.

The world’s second-largest manufacturer of computer memory chips, Hynix Semiconductor reported earning 273.5 billion won ($254.9 million) in the three months ended March 31, compared to net profit of 808.1 billion won a year earlier.

Operating profit was 323 billion won with operating margin of 12 percent, improved from the previous quarter of 294 billion won. Net income for the quarter was 274 billion won increased by 812 percent compared with 30 billion won of the previous quarter. 

Hynix reported that its average selling price for DRAM chips fell 13 percent from the previous quarter while its pricing for NAND flash remained steady.

Nevertheless, Hynix is forecasting that both its computer memory chip prices and shipments will rise as Japan recovers from the devastating impact of this year’s earthquake.

"Japan's earthquake has raised some supply concerns and we expect that to lead some customers to increase (chip) purchases to secure ample inventory," the South Korean firm said in its earnings statement.

As reported by TechZone360.com, the massive 8.9-magnitude earthquake that struck off the coast of Japan last month forced a number of technology companies to temporarily close their doors. Power outages and port closures impacted a number of Japanese technology firms, especially those that manufacture products and components for the consumer device space.

While most companies were shielded from the direct effects of the earthquake and the correlating tsunamis, nearly every major player in the industry has recently closed multiple plants while they evaluate the damage and wait for the conclusion of rolling power blackouts, according to a recent Wall Street Journal report.






Edited by Jennifer Russell

TechZone360 Contributing Editor

SHARE THIS ARTICLE
Related Articles

Surface 3: Third Time's A Charm

By: Rob Enderle    3/31/2015

You can also update hardware with the new operating system and even though Surface sells initially with Windows 8 it will get an update to Windows 10 …

Read More

Five Lessons March Madness Teaches Us About Gamification

By: TMCnet Special Guest    3/31/2015

Where does this mass hysteria over the NCAA come from? Its not just about a widespread love of basketball. Its popularity is the result of the tournam…

Read More

Acronis Survey Examines Importance of Digital Responsibility

By: Peter Bernstein    3/30/2015

Reader alert! This is no pre-April Fool's Day item. In fact, the organizers of World Backup Day have been careful to schedule their event for March 31…

Read More

Financial Services: Investing in Data Security Risk Mitigation

By: Ryan St Hilaire    3/30/2015

In the words of the late Peter Drucker, "What gets measured gets managed". This also holds true in today's cyber threat landscape.

Read More

Frame Brings CAD Windows Apps into the Cloud

By: Peter Bernstein    3/27/2015

CAD Windows apps can now be moved to the cloud thanks to Menlo Park, California-based startup Frame (formerly MainFrame2). This represents what is lik…

Read More