SK Hynix Inc., the world’s second largest memory chipmaker, reported the smallest operating profit in the second quarter since January-March 2013 due to sagging chip prices.

Capital investment as result will stay conservative in a scale of around 6 trillion won ($5.3 billion), down more than 10 percent from last year, with another 3 trillion won planned for the remainder of the year after spending 3 trillion won in the first half, said Kim Joon-ho, a president of SK Hynix in charge of corporate affairs in a conference call following release of the second-quarter earnings.

The company announced in a regulatory filing on Tuesday that it recorded 452.9 billion won ($398 million) in operating profit during the April to June period this year, down by 19.4 percent on quarter and 67.1 percent on year. Its consolidated revenue came to 3.94 trillion won, rising 7.8 percent from the previous quarter thanks to better-than-expected shipments, but falling 15.0 percent from the same period last year.

The company’s net profit amounted to 286.1 billion won, down 36.1 percent on quarter and 74.2 percent on year after reflecting losses in foreign exchange and income tax expenses.

The company had kept up operating profit above $1 billion for seven consecutive quarters until the third quarter last year, but has been struggling ever since due to depressed global demand and prices.

But it was more upbeat for the remainder of the year. It expected shipment for NAND flash and solid-state drive chips to increase in the third quarter on demand for newer smartphones and advanced applications in mobile devices.

“Shipments of NAND flash memory chips are expected to rise more than 10 percent in the third quarter and we plan to ramp up share of 14-nanometer chips to meet the growing demand,” said Kim. He expected annual Hynix NAND bit shipment growth to be in the mid-to-high 40s, above the early 40 percent growth in the global NAND flash market.

SK Hynix shares closed Tuesday at 32,050 won, down 450 won or 1.38 percent from the previous session.

By Lee Seung-hoon

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