South Korean chipmaker Hynix Semiconductor is seeing its business drop down the loo after a wider-than-estimated third-quarter loss.
The outfit, which is the world’s second-largest maker of computer-memory chips, saw chip prices plummet and suffered from a weakening of the South Korean currency.
The outfit lost 562.6 billion won, which is $496 million in American money. This is compared with a profit of 1.04 trillion won a year earlier and a couple of billion won worse than analysts expected.
According to Business Week, Hynix and other makers of memory chips known as DRAM have suffered from weakening demand as traditional PCs wane.
All this was happening the outfit, which was was put on sale by former creditors, is trying to increase its sales with different types of memory used in new mobile devices. It has also attempted to slash production costs by using advanced technologies.
But the problem is that DRAM prices fell fast, and there was a limit to what the outfit could do to cut costs.
The weaker South Korean won walloped the outfit’s bottom line and caused a 250 billion won foreign-exchange loss. This was bad for Hynix, which has $4.4 billion worth of debts in foreign bank accounts.
Shares in the company fell 2.1 percent on the back of the news.
The company’s operating loss, or sales minus the cost of goods sold and administrative costs, was 276.8 billion won on sales of 2.29 trillion won.