The Company’s consolidated first quarter revenue totaled 6.29 trillion won while operating profit amounted to 2.47 trillion won and net income was 1.9 trillion won. Operating margin for the quarter was 39% and net margin was 30%.
The Company set the record-high quarterly revenue and operating profit thanks to favorable market conditions attributed to product price hikes during the first quarter, which has been traditionally off-season in the memory semiconductor industry. The revenue increased by 17% and the operating profit rose by 61% compared to the previous quarter.
Quarter-over-quarter, DRAM bit shipments decreased by 5% but the average selling price increased by 24%. The shipments declined due to a continuous DRAM short-supply caused by low inventory level at the beginning of the year and limited supply growth. The ASP rapidly rose, courtesy of strong demand from PC and server sectors.
For NAND Flash, the bit shipments decreased by 3% but the average selling price rose by 15%. The shipments declined due to limited supply growth related to low inventory level despite demand growth from mobile and SSD sectors. The ASP increase took place in every NAND Flash product category.
SK Hynix will speed up to further expand 2Znm DRAM and start to mass produce 1Xnm DRAM in the second half of this year. Also, the Company will supply 48-Layer and 72-Layer 3D NAND to high density mobile and SSD markets.
Please note that the financial results discussed herein are preliminary and speak only as of March 31, 2017. Readers should not assume that this information remains operative at a later time. In addition, this information may include forward-looking statements that involve a variety of risks and uncertainties that could cause actual results to differ materially. For further discussion of these risks and uncertainties, readers should refer to SK Hynix Inc.’s filings with the Korea Exchange. This document is neither an offer to sell nor a solicitation of an offer to sell any security of SK Hynix Inc..
About SK Hynix Inc.
SK Hynix Inc., headquartered in Korea, is the world’s top tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), Flash memory chips ("NAND Flash") and CMOS Image Sensors ("CIS") for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about SK Hynix is available at www.skhynix.com.
SK Hynix Inc.