Healthier memory market boosts Hynix's Q3

By Colleen Taylor, Contributing Editor -- Electronic News, 10/18/2007

Thanks to a renewed seasonal demand for DRAM and NAND flash and a rebound from Q2's dismal pricing environment , memory giant Hynix Semiconductor Inc. saw solid Q3 revenues of $2.65 billion (2.44 trillion Korean won), a 30 percent boost from Q2 and a 24 percent boost from Q3 2006.  

In its earnings report posted Wednesday, Hynix said that the strong performance was due to an improved pricing environment stemming from the increased demand. According to Hynix, the company's average selling price for DRAM increased three percent quarter-on-quarter, while its quarter-on-quarter bit growth was 17 percent due to strong demand from PC OEMs. NAND flash, however, saw a six percent drop in average selling price but enjoyed 92 percent bit growth due to strong demand for MP3 players, perhaps evidencing the beginning of the NAND market's turnaround.

Hynix said that its Q3 operating profits more than doubled to $276.8 million (254 billion won), a 44 percent drop year-over-year but a 133 percent boost from Q2.