SK Hynix Reports Q3 Financial Improvement

SK Hynix, the Korean memory-chip maker, announced that its net loss for the third quarter of this year has significantly narrowed compared to the previous quarter. The company's DRAM business managed to turn around after two consecutive quarters of losses.

In the three-month period ending in September, SK Hynix reported a net loss of KRW2.185 trillion ($1.62 billion). This was an improvement from the loss of KRW2.988 trillion in the prior quarter and a profit of KRW1.108 trillion in the same period last year.

Despite a decline of 18% in revenue compared to a year ago, SK Hynix saw a 24% increase in revenue from the previous quarter, reaching KRW9.066 trillion. Operating losses for the quarter stood at KRW1.792 trillion.

Although the net loss was wider than the market consensus forecast, these results indicate that SK Hynix's recovery is still on track.

The company attributes the turnaround in its DRAM business to the strong sales of premium products. High-bandwidth-memory3 and double data rate5 chips for artificial intelligence applications and high-end mobile handsets performed particularly well. Shipments of DRAM chips increased by 20%, and their average selling price rose by 10% in the third quarter compared to the previous quarter.

SK Hynix is optimistic about the future of its DRAM business, expecting further improvement due to the growing demand for artificial intelligence, production cuts within the industry to address oversupply, and increased restocking demand from clients.

Overall, SK Hynix's Q3 financial performance indicates positive momentum for the company's recovery.