No. 2 memory chip maker fared well in 2022
SK hynix announced on April 26 that it had racked up revenues of 12.16 trillion won ($9.6 billion) in the first quarter of 2022, up 43 percent from a year ago.
The outfit also more than doubled its operating profit to 2.86 trillion ($2.26 billion) won year-on-year.
The quarterly revenues of more than 12 trillion won in the low season of the January-March period top those of the first quarter of 2018 when the memory industry enjoyed one of the best times, according to the world’s No. 2 manufacturer of memory chips.
SK hynix noted that a smaller-than-expected fall in memory chip prices and revenues of Solidigm, which was incorporated as SK hynix’s subsidiary at the end of 2021, had contributed to the earnings.
The operating profit of 2.86 trillion won is also the best performance for the first quarter since 2018.
“Consumption of some IT products slowed down from the start of the year amid ongoing challenges, including the supply chain issue,” the company said in a statement.
“SK hynix responded to customer demand in a flexible way, while focusing on profitability management, resulting in handsome earnings.”
SK hynix expects the memory industry to continue to grow as the volatility of the industry is believed to be kept relatively low.
The latest financial results also reflect the one-off provision that the company decided to set aside in accounting following the finding of a performance weakness in some DRAM products sold previously.
The company commented that the development of technology and production of next-generation products are also being implemented as scheduled without delay.
“I think we’ve accomplished meaningful performance despite the seasonality issue. As demand for server chips is on the rise, the memory business will improve into the second half,” Chief Marketing Officer Kevin Noh said.
“We will strive to meet customer demand by continuing to improve the yield rate despite a difficulty in the supply of the equipment.”
SK hynix also announced that it had revised the company regulations on the committee responsible for the nomination of non-executive director candidates with an aim to strengthen the independence and diversity of the board.