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.