SK Hynix posts profit as chip demand improves
SEOUL, South Korea (AP) — South Korean chipmaker SK Hynix Inc. reported a second straight quarterly profit as its debt load eased and sales benefited from increased demand for chips used in smartphones and servers.
The company said Wednesday its October-December net profit totaled 163.7 billion won ($151 million) compared with a 239.9 billion won loss a year earlier. SK Hynix returned to the black in the July-September quarter with a 2 billion won profit following a period of losses due to a slump in chip prices and weak demand.
Revenue was up 6.5 percent to 2.7 trillion won and operating profit totaled 55 billion won.
The company said it benefited from strong demand for chips used in mobile devices and servers, which offset lower demand for chips used in personal computers.
SK Hynix, which competes with bigger rivals Samsung Electronics Co. and Toshiba Corp., supplies chips to Apple Inc., Dell Inc. and Hewlett-Packard Co.
Rising smartphone sales in China and new product launches by its clients during the fourth quarter drove an increase in sales and prices of flash memory chips, Hynix said. The company also benefited from solid sales of affordable tablet PCs in emerging markets.
The stronger South Korean won reduced the value of Hynix's U.S. dollar debts, resulting in an accounting gain that also boosted the bottom-line.
Global semiconductor companies are bracing for a shift in computing as more consumers and companies turn to mobile devices instead of desktop computers.
Business Photo Galleriesview all
- 13360Oklahoma tornadoes: The 'Big Dog,' the little boy and the hug that triumphs over tragedy
- 9892Oklahoma tornadoes: Cost, custom keep basements scarce
- 9697Finding Addyson – One family's struggle in the Moore tornado
- 8639Oklahoma tornadoes: Plaza Towers Elementary School teacher shoved students into bathroom as wall collapsed
- 6622Miranda Lambert, Reba McEntire, Vince Gill to join Blake Shelton at "Healing in the Heartland" Oklahoma tornado benefit
- 5282Oklahoma tornadoes: Woman meets the military officer who shared the clothes off his back
- 4594Story behind the photo: Family members describe desperate search for one another after EF5 twister