SK Hynix Announces Financial Results for the Second Quarter of Fiscal Year 2023
SK Hynix has released its second quarter financial report for the fiscal year of 2023, up until June 30th, 2023, indicating promising sales of high-end products such as HBM3 and DDR5 DRAM, resulting in enhanced revenue and a reduction in operational deficits. The company asserts that as the memory industry exhibits a rejuvenating trend, competitiveness in AI memory will be fortified to expedite the improvement of performance.
The financial statement reveals that SK Hynix recorded revenue of 7.3059 trillion Korean won (approximately 56.98 billion USD) in the first quarter of the fiscal year 2023, a year-on-year decrease of 47%, but a sequential increase of 44%. The operational deficit was 2.8821 trillion Korean won (approximately 22.48 billion USD), a switch from profit to loss compared to the same period of the previous year, albeit a sequential increase of 15%. Net loss amounted to 2.9879 trillion Korean won (approximately 23.3 billion USD), a change from profit to loss year-on-year, but a sequential reduction of 16%. The loss from operations stood at 39%, and the net loss rate at 41%.
SK Hynix projects that the robust demand for AI memory will persist in the second half of the year, the effects of cutbacks in semiconductor memory production will gradually become conspicuous, and by focusing on AI memory like HBM3, high-performance DDR5 and LPDDR5 DRAM, and SSD based on 176-layer NAND flash, sales performance will be consistently enhanced to hasten the improvement of performance in the latter half of the year. The company also plans to increase the initial yield rate and quality of fifth-generation 10-nanometer (1b) DRAM and 238-layer NAND flash to rapidly increase mass production when market conditions improve.
SK Hynix’s CFO, Kim Woohyun, noted that although the scale of SK Hynix’s investment has not deviated from a reduction of over 50% year-on-year, funds ensured through operational efficiency will be leveraged to persistently invest in expanding production capacity for future market leaders like high-capacity DDR5 and HBM3 DRAM. Furthermore, with the first quarter as the low point, the semiconductor memory market has begun to demonstrate a recovery. Grounded in the competitive edge of high-performance products, SK Hynix is committed to vigorous efforts to swiftly enhance performance.