The world's fourth largest memory chip producer posted a 133.9 billion won (113 million dollar) net profit in the third quarter, compared with a 616.8 billion won loss a year earlier.

It is the first time that Hynix Semoconductor Inc. has posted a quarterly profit since the first quarter of 2002.

Hynix posted a 530.2 billion won net loss in the second quarter of this year.

Its operating loss narrowed to 20.7 billion won in the third quarter from 258.2 billion in the previous quarter.

Sales rose 27 percent quarter-on-quarter to 990.7 billion won in the three-month period till September.

"Our results showed substantial improvement on stronger DRAM (dynamic random access memory) prices against reduced costs and profits from our overseas units," Hynix said. "Average DRAM sales prices rose by over 20 percent from a quarter earlier."

Consolidated revenues, which includes overseas operations, rose to 1.08 trillion won in the third quarter, 56 percent up from 689 billion won a year earlier.

Heavily-indebted Hynix was rescued in December last year by a multi-billion-dollar bailout arranged by South Korean creditor banks.

The company said its total debt dropped to 5.35 trillion won at the end of last month from 5.45 trillion won three months earlier.

SPACE.WIRE