SK hynix Inc., the world's No. 2 memory chip maker, said Wednesday it returned to profit in the first quarter on the back of an improved product mix.

Net profit reached 179 billion won ($159 million) in the January-March period, reversing from a loss of 271 billion won the previous year, SK hynix said in a regulatory filing.

Revenue increased 16.4 percent on-year to 2.78 trillion won in the first quarter. SK hynix said it posted an operating income of 317 billion won in the first three months of the year, shifting from an operating loss of 264 billion won a year earlier.

The stronger bottom line was attributed to a solid demand for PC DRAMs and NAND flash solution products, it said.

"Sales increased on the back of increased demand for PC DRAMs and servers, and our profitability also improved, led by an improvement in NAND flash memory and DRAM," the company said.

SK hynix said its DRAM shipment increased 3 percent in the first quarter from the previous quarter with the average selling price also up 4 percent on-quarter.

Meanwhile, NAND flash shipments declined 1 percent on-quarter in the January-March period, and the average price dropped 5 percent, as demand for mobile devices remained weak, SK hynix said.

SK hynix said demand for mobile DRAMs and NAND flash memory will recover in the second quarter as global mobile phone manufacturers roll out new products and China's smartphone market is expected to recover its growth pace. (Yonhap News)