DRAM maker SK Hynix has reported net profits of KRW179 billion (US$159 million) for the first quarter of 2013. This improved on net losses of KRW271 billion a year earlier, and was higher than the profits of KRW164 billion reported for the prior quarter.

Consolidated revenues increased 2% sequentially and 16% from a year ago to KRW2.72 trillion in the first quarter of 2013. SK Hynix credited the positive performance to a pick-up in PC and server DRAM demand.

SK Hynix disclosed that its DRAM bit shipments grew 3% sequentially in the first quarter, while ASPs rose 4%. But for NAND flash, bit shipments slid 1% on quarter with ASP falling 5%.

SK Hynix indicated that shipments of its DRAM chips during the first quarter improved more than expected, thanks to increased demand of PC and server chips for data centers. Meanwhile, the company benefited from more favorable prices for PC DRAM chips. As more suppliers shift their focus to mobile DRAM chips, the supply of PC DRAMs has fallen short of demand resulting in the chip price growth, the company said.

As for NAND flash, ASPs were affected by a seasonal slowdown in demand, SK Hynix said. However, the price drops were not significant, the firm added.

SK Hynix' operating profits for first-quarter 2013 also improved to KRW317 billion from KRW55 billion in the previous quarter. The company pointed out that its process technology migration and yield improvement buoyed the profitability of both DRAM and NAND flash products.

SK Hynix noted that the company plans to strengthen its market competitiveness by focusing on mobile products such as mobile DRAM, MCP and eMMC. It is also looking to progress a technology migration to 20nm for the manufacture of DRAM products, and 10nm for NAND flash in the second half of 2013.