Date: 06/02/2009

Hynix Semiconductor's recent quarter over quarter sales drop by 18 %

Hynix Semiconductor reported fourth quarter consolidated sales decreased by 18% sequentially from 1.84 trillion won to 1.51 trillion won. DRAM price dropped by 43% and NAND flash price dropped by 18% sequentially with flat DRAM bit growth and 37% decline of NAND flash bit growth. Sequential deterioration in sales was mainly due to the sharp erosion in DRAM and NAND flash ASPs amid weakening demand environment and decline in sales volume of NAND flash products.

Operating loss for the fourth quarter has expanded to 782 billion won from the loss of 465 billion won in the previous quarter, recording negative 52% of operating margin.

Net loss for the quarter amounted to 1.33 trillion won with negative 88% of net income margin. The primary factor for the difference between the operating loss and net loss was due to the net foreign currency transaction and translation losses that occurred as a result of the weak Korean won and high level of dollar-denominated outstanding debt.

Sales in fiscal year 2008 have decreased to 6.82 trillion won from 8.61 trillion won, down 21% from a year ago. It is a result of rapid decline in prices which has not been offset by bit growth and weak Korean won. Operating loss amounted to 1.9 trillion won compared to 491 billion won of operating profit at the same time last year. Net loss for the year amounted to 4.38 trillion won.