South Korea memory chip manufacturer SK Hynix Q4 results are weighing on Micron (MU) in after hours trade
- Q4 revenue fell by 13% quarter-over-quarter (QoQ) to 9.94 trillion won, while operating profit amounted to 4.43 trillion won, down by 32% QoQ with operating margin of 45%. Net income for the quarter fell 28% QoQ to 3.4 trillion won. Memory demand slowed down in the second half and the supply shortage was resolved, the memory market environment rapidly changed.
- Quarter-over-quarter, DRAM bit shipments declined by 2% and the average selling price by 11%. For NAND Flash, the bit shipments increased by 10%, but the average selling price fell by 21%. SK Hynix plans to concentrate on high value-added products and technologies in order to prepare for the rapidly changing market conditions. The Company will expand its customer base of 16Gb DDR4 products to increase the adoption of high density DRAM modules by server customers. It will also actively respond to customer demand for HBM2 and GDDR6 products with high growth potential. In order to focus on technology migration, the Company plans to expand the proportion of 1Xnm DRAM and to ensure stable mass production of 1Ynm DRAM.
- SK Hynix has decided to pay its shareholders 1,500 won per share in 2018 in the form of a cash dividend, which is increased by 50% compared to the last year