Hynix Semicnductor posts first quarterly net profit in two years

Hynix Semiconuctor Inc the second-largest computer-memory chipmaker in the world posted its first quarterly profit in two years on higher prices. It reported a third quarter net income at 245.4 billion won as against a 1.64 trillion won loss a year earlier, the Ichon, South Korea-based Hynix announced on Thursday.

Analysts say the company will likely post its highest profit in three years in the current period on increased prices. They add that cost cutting was less than expected with higher expenses for testing and depreciation but the outlook on the industry and Hynix remains positive.

Revenue increased 10 per cent to 2.05 trillion won and operating profit, or sales minus the cost of goods sold and administrative expenses stood at 165.1 billion won, as against a loss of 463.4 billion won a year earlier. Analysts say the company would post sales of 2.02 trillion won and operating income of 229 billion won.

Hynix's dynamic random access memory, or DRAM prices rose about 26 per cent in the third quarter compared with the preceding three-month period, according to the company. DRAM chips hold data temporarily to help computers run multiple programmes at a time.

The company said prices of its NAND flash memory chips which store songs and pictures in consumer electronics such as MP3 players and digital cameras rose 4 per cent in the quarter.

Analysts say the PC market is fast recovering and the outlook for the memory makers remains upbeat.