Memory chipmaker Hynix Semiconductor has said it produced robust earnings in the third quarter of 2010 despite weakening chip prices, thanks to improved production technology and better product mix.
Hynix announced that third-quarter net profits soared to 1.06 trillion won (US$938 billion) from 665 billion won in the prior quarter. The company credited the 59% growth to gains on foreign currency transactions.
Hynix's operating profits for the third quarter were 1.01 trillion won, down 3% from the record of 1.05 trillion won in the second quarter. "This performance is similar to the previous quarter which was the company's highest ever based on quarter, thanks to our technology competitiveness and profitable products portfolio," Hynix said in a statement. Operating margin for the third quarter slid 1pp sequentially to 31%.
Hynix collected 3.25 trillion won in consolidated revenues in the third quarter, down slightly from 3.28 trillion won in the second. But the figure showed a 53% rise from year-ago revenues of 2.12 trillion won, according to data released by the company.
In the third quarter, Hynix saw its NAND flash bit shipments climb by 42% on quarter, but ASP fell 23%, the company said. Meanwhile, DRAM ASP declined by 9% sequentially in the quarter, while shipments increased 2%. Hynix attributed the ASP drops to sluggish demand.