Next slide. This conference call will take an hour. Before we go into the Q&A session, please allow me to highlight our third quarter 2011 results, performance highlights, and outlook followed by future management forecast. Moving on to revenue and profits on the next slide. Revenue in the third quarter was KRW6.3 trillion, up 4% quarter-on-quarter. Besides the global economic downturn with higher value-added products such as FPR 3D and Smartbook, panel shipments rose by 9% quarter-on-quarter. However due to the continued uncertainty in the demand outlook, the blended ASP fell more than expected.
In addition, non-recurring loss such as unrealized foreign valuation loss and the reserve for antitrust increased the operational loss to KRW492 billion. The operating margin was minus 8% and EBITDA margin was 7%. After taking out the non-recurring items, the adjusted operating loss was KRW260 billion. Loss before tax was KRW695 billion. Net loss was KRW688 billion.
Looking at our financial positions and ratio, we have KRW2 trillion in cash and cash equivalents. Inventory fell by KRW450 billion to KRW2.4 trillion with active inventory adjustment during the quarter. Utilization ratio and the standard of no more inventory holding period was reduced in order to maintain a healthy inventory level. Our net debt to equity ratio increased to 25% due to slight decrease in cash, which is manageable level.
Moving on slide five, looking at our cash flow. Cash at beginning of the quarter was KRW2.4 trillion. Cash flow from operating activities resulted in cash inflow of KRW867 billion and with active inventory adjustments, cash inflow from working capital was increase by KRW289 billion. Cash flow from investing activities resulted in an outflow of KRW947 billion, and cash flow from financing activities resulted in an outflow of KRW252 billion. As a result, the net change in cash was outflow of KRW332 billion.
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