South Korea's No. 2 chipmaker SK hynix Inc. said Thursday its net profit jumped 64.5 percent in the second quarter from a year earlier on robust demand for chips used in servers and mobile products.
  

Net profit came to 1.1 trillion won ($954 million) in the April-June period, compared with 673.5 billion won a year earlier, the company said in its regulatory filing.
  

Revenue gained 18.2 percent on-year to 4.63 trillion won in the second quarter, and operating profit also jumped 26.9 percent to 1.37 trillion won.
  

The operating profit hovered slightly below the median estimate of 1.44 trillion won in a poll of 23 brokerages conducted by Yonhap Infomax, the financial news arm of Yonhap News Agency. The consensus sales estimate was 4.7 trillion won.

SK hynix said its improved net profit is attributable to strong sales of chips for servers and mobile products.
  

The company, however, said its PC-related business suffered due to the market's falling demand for personal computers. The segment saw its revenue decline 4 percent on-quarter.
  

The combined shipment of dynamic random access memory products added 4 percent from the previous three-month period, while that of NAND flash products added 8 percent.
  

The average price of DRAMs, however, shed 8 percent on-quarter, with that of NAND flash memory chips falling 6 percent. Accordingly, SK hynix's operating profit was down 13.4 percent from the January-March period.
  

The company said its performance will remain robust down the road on the back of its high-performance double data rate-4 lineup, while the demand from the server and mobile segment is set to increase in the future.
  

As to the NAND flash business, SK hynix said the release of new mobile devices and the expansion of solid state drives will lend support to the growth. A SSD is a data storage device made with a NAND flash memory chip that saves data without power present and is more durable and faster than a hard disk drive.
  

The company added that its annual investment for 2015 is set to hover above 6 trillion won, with 3.7 trillion won already spent in the first half of this year.
  

SK hynix, meanwhile, announced Wednesday it will spend 856 billion won to buy back 22 million of its shares during regular trading sessions.
  

The second-quarter results were released before the opening of the stock market Thursday. Shares of SK hynix traded 3.14 percent higher at 39,400 won as of 9:46 a.m., while the KOSPI edged down 0.4 percent. (Yonhap)