- Toronto Mayor Rob Ford flubs daylight saving time advice: ‘Turn your clocks back’
- Americans don’t support sending U.S. troops to Ukraine
- Florida lawmakers move to wipe corrupt ‘Boss Hogg’ town from map
- N.C. math whiz to unveil secret of March Madness picks
- An appealing offer: Chiquita merges with Fyffes to make world’s largest banana firm
- Amnesty International says Syria guilty of war crimes for food blockade
- Mitch McConnell on beating tea party: ‘We are going to crush them’
- Adam Lanza’s dad: He would’ve killed me ‘in a heartbeat’
- North Korea holds election: 100% turnout, Kim Jong-un gets — 100% of vote
- Gentlemen, start your drones: Judge’s ruling opens door for commercial use
SK Hynix logs 2nd straight quarterly profit
SEOUL, SOUTH KOREA (AP) - South Korean chipmaker SK Hynix Inc. said Wednesday it posted a profit for a second straight quarter as the stronger won reduced the amount of debt denominated in foreign currencies.
Its October-December net profit reached 163.7 billion won ($151 million), compared with a 239.9 billion loss a year earlier. In the previous quarter, it logged 2 billion won in profit.
Its operating profit amounted to 55 billion won on revenue of 2.7 trillion won, a 7 percent rise over a year earlier.
Hynix said it turned to operating profit from the previous quarter's loss thanks to strong demand for chips used in mobile devices and servers.
The company also benefited from solid sales of affordable tablet PCs in emerging markets, which helped offset lower demand for PCs.
Growth of smartphone sales in China and new product launches by its clients during the fourth quarter drove an increase in sales and prices of flash memory chips, it said.
SK Hynix, which competes with bigger rival Samsung Electronics Co. and Toshiba Corp., supplies chips to Apple Inc., Dell Inc. and Hewlett-Packard Co.
For the full year of 2012, the company logged 159 billion won in net losses, bigger than the 56 billion won loss in the previous year.
Global semiconductor companies are bracing for a shift in computing as more consumers and companies turn to portable and mobile devices rather than desktop computers.
Fourth-quarter PC shipments declined by a wider-than-expected margin of 6.4 percent over a year earlier, according to market research firm IDC.
Microsoft's launch of Windows 8 system at the end of last year did little to reverse the downward trend of PC demand, the research firm said.
As doubts abound whether PC shipments can make a rebound this year, chipmakers have been shifting their focus to chips for smartphones, tablet computers and servers. SK Hynix said demand for smartphones in emerging markets and the intensified competition among smartphone makers are expected to increase demand for memory chips for mobile devices.
Because global chip companies are hesitant to raise investments from the previous year due to the uncertainty in PC demand and the global economic outlook, a supply increase could be limited, which could stave off a drastic fall in chip prices, the company added.
Samsung Electronics, the world's largest memory chipmaker, said last week that it will keep its annual capital spending unchanged from the last year, refraining from increasing capital expenditure for the first time in four years.
TWT Video Picks
Taxpayers must pay the freight for over-budget train projects
- Kim Jong-un calls for execution of 33 Christians
- Rand Paul wins 2014 CPAC straw poll, Ted Cruz finishes a distant second
- Senate Democrats, Republicans spar over restoring unemployment benefits
- Russia besieges Crimea as U.S. seeks diplomacy; Putin remains undeterred by Obama's sanctions
- Investigators puzzle: How does a 777 jetliner just disappear into thin air?
- As Crimea falls, Obama takes Key Largo golf vacation, Biden hits Virgin Islands
- CURL: Today's GOP really is Reagan's 'Big Tent' party
- SAUERBREY: Taxing Marylanders until they flee
- Adam Lanza's dad: He would've killed me 'in a heartbeat'
- Mitch McConnell on beating tea party: 'We are going to crush them'
Pope Francis meets his 'mini-me'
Celebrity deaths in 2014
Winter storm hits states — again