April 30, 2007 – Memory maker Hynix says its sales and operating profits took a hit in 1Q due to sharp price declines in both DRAM and NAND, but were offset by surging bit growth.

Sales topped $2.64 billion, 6% lower than the prior quarter but up 69% from a year ago. DRAM prices sunk 27% Q-Q, but better-than-expected 45% bit growth (helped by NAND-to-DRAM capacity shifts and a 80nm transition) caused DRAM sales to rise 4% sequentially, the firm noted.

NAND flash sales, on the other hand, decreased 42% on the back of a 44% plunge in NAND ASPs, “without any volume growth,” primarily due to the shift of NAND capacity over to DRAM “and the delay of 60nm technology,” the company noted.

1Q07 operating profits were ~$480.8 million, down 48% Q-Q but up 24% Y-Y, with an operating margin of 18%. Net profits were $462.5 million (also 18% margins). Capital spending was about $1.62 billion, roughly 35% of Hynix’s budgeted FY07 capex of $4.74 billion.