SK Hynix Inc.(KRX: 000660) announced its financial results for the first quarter of 2023, posting a net loss of KRW 2.586 trillion amid a downturn in the memory chip market.
The company reported revenues of KRW 5.088 trillion and an operating loss of KRW 3.402 trillion, with negative operating and net profit margins of 67% and 51%, respectively.
The weak financial performance is attributed to sluggish demand and falling product prices.
However, SK Hynix expects a rebound in earnings in the second quarter, driven by increased sales volume.
In addition, the company expects market conditions to improve in the year's second half as memory inventories decline and suppliers' production cuts take effect.
SK Hynix plans to focus on high-performance DRAM products, including server DDR5 and HBM, and NAND products, such as 176-layer SSD and uMCP.
Despite reducing capital expenditures, the company will continue to invest in high-end memory products for applications such as AI.
In addition, SK hynix will invest in the mass production of 1b nanometer DRAM and 238-layer NAND technology to support a rapid business turnaround when market conditions improve.
CFO Kim Woohyun emphasized that the company will consolidate its leadership in the premium market by increasing the sales volume of flagship products such as DDR5, LPDDR5, and HBM3.
In addition, Kim expressed optimism that the memory market was bottoming out and vowed to focus on profitability and technology development to restore corporate value.
Please also read.
SK Hynix Reports 2022 Financial Results with Revenues of KRW 44.648 Trillion.
SK Hynix Unveils World’s Fastest Mobile DRAM: LPDDR5T.
Samsung, TSMC, and SK Hynix get reprieves for U.S. chip restrictions to China.
SK Hynix to Build M15X Fab in Cheongju.
SK Hynix is considering acquiring ARM.
SK Hynix Develops PIM, Next-Generation AI Accelerator
SK Hynix and FADU are in talks with Meta for the NVMe SSD supplement.