SAN FRANCSICO—South Korean chip makers Hynix Semiconductor Inc. and MagnaChip Semiconductor Ltd. reported third quarter sales increases despite some signs of a softening semiconductor market.
Hynix reported third quarter consolidated revenues of 3.25 trillion won (about $2.9 billion), down about 1 percent from the second quarter.
Hynix reported a consolidated net income of 1.06 trillion won ($943 million), up 59 percent from the second quarter. Net income benefited from a favorable currency exchange rate, the company said.
Due to sluggish demand, memory prices were weaker than expected during the third quarter, Hynix said. The company said that average selling prices (ASPs) for its DRAM parts declined 9 percent, while bit shipments increased 2 percent. NAND flash memory ASPs decreased by 23 percent sequentially, while bit shipments increased 42 percent, Hynix said.
MagnaChip (Seoul) reported sales of $209.4 million, up 8 percent from the second quarter and up 34 percent from the third quarter of 2009. The company reported a gross profit of $69.3 million, or 33 percent of revenue, up from $64.5 million in the previous quarter and up from $52.2 million in the year-ago quarter.
MagnaChip reported a net income in accordance with generally accepted accounting principles (GAAP) of $61.5 million, or 20 cents per diluted common unit, down slightly compared with the third quarter of 2009 but an improvement compared to a $30.7 million loss in the second quarter. Third quarter net income benefited from a foreign currency gain of $41.4 million in the third quarter, primarily related to non-cash translation gains or losses for intercompany borrowings at its Korean subsidiary, Magnachip said.
“While recent industry announcements indicate some uncertainty regarding the state of the global semiconductor market recovery, MagnaChip continues to be well-positioned for profitable growth with a strong product portfolio and pipeline of new products during this short-term inventory correction," said Sang Park, MagnaChip's chairman and CEO.
MagnaChip, which scrapped a bid for an initial public offering (IPO) in the U.S. earlier this year, is considering an IPO in the near future.