TAIPEI, Taiwan, Oct. 29 /Xinhua-PRNewswire-FirstCall/ --
Third Quarter 2008 Overview (Note 1):
-- Revenue decreased 1.9% sequentially to NT$24.75 billion (US$768 million)
-- Gross profit margin of 17.6%, operating margin of 3.8%
-- Net loss of NT$1.41 billion (US$44 million), included an impairment
loss of NT$3.22 billion
-- Revenue from 90nm technology and below was 38%
-- Loss per ordinary share was NT$0.11; Loss per ADS was US$0.017
Note 1: Unless otherwise stated, all financial figures discussed in this
announcement are prepared in accordance with ROC GAAP, which
differ in some material respects from generally accepted
accounting principles in the United States. They are un-audited,
unconsolidated, and represent comparisons among the three-month
period ending September 30, 2008, the three-month period ending
June 30, 2008, and the equivalent three-month period that ended
September 30, 2007. For all 3Q08 results, New Taiwan Dollar (NT$)
amounts have been converted into U.S. Dollars at the September 30,
2008 exchange rate of NT$32.22 per U.S. Dollar.
United Microelectronics Corporation (NYSE: UMC) (TSE: 2303) ("UMC" or "the Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the third quarter of 2008.
Dr. Shih-Wei Sun, CEO of UMC, said, "UMC's Q3 results were in line with our previous guidance, with 883 thousand 8-inch equivalent wafers shipped and overall utilization rate for the quarter at 79%. Customer demand for advanced 90nm and 65nm technologies remained steady, with revenue from 90nm and below processes slightly rising to 38%. Looking ahead to Q4, we see that the environment is more challenging than we previously anticipated. Customers have adopted a cautious attitude with regard to their wafer demand forecasts due to uncertainty related to the current global economic situation."
Dr. Sun continued, "UMC's strengths in financial structure, capital position, independent technology development and manufacturing capabilities will enable us to overcome the challenges of the current global economic crisis. Our management has a wealth of experience dealing with the extremes of the business cycle, and UMC's strategy of delivering customer-driven foundry solutions is designed to maximize benefits and profits for UMC and its customers over the long-term. We will continue to invest in developing advanced process technologies and expand our manufacturing capacity where necessary to increase our market share and penetration of business from our key foundry customers. Currently, 45/40nm is being prepared for pilot production this year, and development for the 28nm process is progressing smoothly in Fab 12A. At the same time, we continue to make significant achievements in enhancing productivity while successfully implementing cost control measures, and we anticipate further improvements going forward. I would like to emphasize the fact that our cost control measures will have no effect on our advanced technology research and development and the purchase of necessary equipment. These and other important expenditures will continue as planned so that we emerge from the current economic slowdown with even stronger long-term competitiveness. We will continue to pursue our foundry strategy, and are optimistic about the prospects of future growth and profitability once the global economy stabilizes and consumer confidence grows."
Summary of Operating Results
Operating Results
QoQ% YoY%
(Amount: NT$ million) 3Q08 2Q08 change 3Q07 change
Revenue 24,748 25,238 (1.9) 31,028 (20.2)
Gross Profit 4,368 5,795 (24.6) 8,223 (46.9)
Operating Expenses (3,421) (3,454) (1.0) (3,988) (14.2)
Operating Income 947 2,341 (59.5) 4,235 (77.6)
Non-op. Income
(Expenses) (2,105) 120 -- 5,764 --
Net Income (1,413) 2,397 -- 9,233 --
EPS(NT$ per share) (0.11) 0.18 -- 0.55 --
(US$ per ADS) (0.017) 0.028 -- 0.085 --
Revenue decreased 1.9% quarter-over-quarter to NT$24.75 billion, from NT$25.24 billion in 2Q08. Gross profit was NT$4.37 billion, or 17.6% of revenue, compared to NT$5.8 billion, or 23% of 2Q08 revenue. Operating income decreased 59.5% sequentially to NT$947 million, or 3.8% of 3Q08 revenue. Weakening global semiconductor demand was the key reason for the decrease in revenue, gross profit and operating income during the third quarter. Net loss in 3Q08 was NT$1.41 billion, mainly due to an NT$3.22 billion impairment loss, compared to a net income of NT$2.4 billion in 2Q08.
Loss per ordinary share for the quarter was NT$0.11. Loss per ADS was US$0.017. This compares with 2Q08 EPS of NT$0.18 and EPADS of US$0.028. One ADS represents five Taiwan-listed ordinary shares. The basic weighted average number of outstanding shares in 3Q08 was 13,129,987,534, compared with 13,171,551,610 shares in 2Q08 and 15,411,526,795 shares in 3Q07. The diluted weighted average number of outstanding shares was 13,129,987,534 in 3Q08, compared with 13,178,233,102 in 2Q08 and 15,887,984,244 shares in 3Q07. The decrease on weighted average share count is due to the retirement of 348,583 thousand treasury shares acquired from the 8th share buyback program. The fully diluted share count on September 30, 2008 was 14,305,634 thousand. On September 30, 2008, UMC held 542,834 thousand treasury shares acquired from the 9th, 11th, and 12th share buy-back programs. UMC completed the 12th share buy-back program on October 2, 2008.
Detailed Financials Section
Depreciation and amortization totaled NT$9.22 billion in 3Q08, compared with NT$9.4 billion in 2Q08. Depreciation within COGS of NT$8.09 billion went up by 7.7% from 2Q08 and other manufacturing costs within COGS increased to NT$12.29 billion sequentially, mainly due to the higher cost allocation in 3Q08 caused by lower loading in 3Q08. Total operating expenses decreased by 1% to NT$3.42 billion. General & Administrative expenses dropped to NT$639 million, partially due to the accounting adjustment on the reserves of employee bonus. Sales & Marketing expenses increased to NT$673 million, mainly due to increase in IP Royalty fees. R&D expenses increased to NT$2.11 billion due to the increase expenses on RD mask. The total R&D expenses were 8.52% of revenue in 3Q08.
COGS & Expenses
QoQ% YoY%
(Amount: NT$ million) 3Q08 2Q08 change 3Q07 change
Revenue 24,748 25,238 (1.9) 31,028 (20.2)
CoGS (20, 380) (19, 443) 4.8 (22,805) (10.6)
Depreciation (8,086) (7,510) 7.7 (8,445) (4.3)
Other
Mfg. Costs (12 ,294) (11,933) 3.0 (14,360) (14.4)
Gross Profit 4,368 5,795 (24.6) 8,223 (46.9)
Gross Margin (%) 17.6% 23.0% -- 26.5% --
Total
Operating Exp. (3,421) (3,454) (1.0) (3,988) (14.2)
G&A (639) (744) (14.1) (753) (15.1)
Sales & Marketing (673) (620) 8.6 (922) (27.0)
R&D (2,109) (2,090) 0.9 2,313 (8.8)
Operating Income 947 2,341 (59.5) 4,235 (77.6)
Operating Margin(%) 3.8% 9.3% -- 13.6% --
Net non-operating losses during 3Q08 were NT$2.11 billion. Net investment losses were NT$2.86 billion, which included an other-than-temporary impairment loss of NT$3.22 billion and a NT$1.24 billion loss from valuation of ProMos shares, partially offset by NT$1.67 billion of cash dividend. Gains on the disposal of investments were NT$611 million, including a gain from the sale of MediaTek shares for NT$594 million. Net foreign exchange gains were NT$41 million, which include NT$735 million from foreign exchange gains and NT$694 million from hedging losses.
Non-operating Income (Expenses)
(Amount: NT$ million) 3Q08 2Q08 3Q07
Net Non-operating
Income (Exp.) (2,105) 120 5,764
Net Interest Income (Expense) 108 160 249
Net Investment Income (Loss) (2,860) (575) 1,676
Gain on Disposal of Investment 611 524 3,437
Exchange Gain(Loss) 735 36 63
Others (699) (25) 339
Net cash outflow was NT$224 million in 3Q08. Cash inflow from operations was NT$13.79 billion in 3Q08. The investing cash outflow primarily reflects the NT$1.78 billion of CAPEX in 3Q08. Free cash flow (Note 2) for 3Q08 was NT$12.01 billion. The NT$12.23 billion of financing cash outflow is mainly for the cash dividend distribution of NT$9.38 billion and the 12th treasury buyback amounted to NT$2.09 billion.
Cash Flow Summary
For the For the
3-Month 3-Month
(Amount: NT$ million) Period Period
Ended Ended
Sept. 30, Jun. 30,
2008 2008
Cash Flow from Operating 13,792 8,799
Net Income (Loss) (1,413) 2,397
Depreciation
& Amortization 9,224 9,404
Changes in
working capital 865 (3,403)
Others 5,116 401
Cash Flow from Investing (2,143) (2,489)
Capital Expenditures (1,778) (2,488)
Others (365) (1)
Cash Flow from Financing (12,225) (10,503)
Redemption of bonds -- (10,500)
Cash Dividend (9,383) --
Purchase of
treasury stock (2,087) --
Others (755) (3)
Effect of
Exchange Rate 352 (24)
Net Cash Flow (224) (4,217)
Note 2: Free cash flow = Operating cash flow - Capital expenditures
Cash and cash equivalents decreased to NT$25.19 billion during 3Q08, which was mainly due to the cash outflow for capacity expansion, cash dividend distribution, and the 12th treasury buyback program. The decrease in notes and accounts receivable primarily reflected the downward trend of the business in 3Q08. The decrease in inventory came from the decrease of work-in-process wafers.
Current Assets
(Amount: NT$ billion) 3Q08 2Q08 3Q07
Cash & Cash Equivalents 25.19 25.42 76.79
Notes & Accounts Receivable 14.12 14.79 17.20
Days Sales Outstanding 53 50 46
Inventory 11.76 12.31 10.89
Avg. Inventory Turnover 55 56 44
Total Current Assets 54.89 58.37 113.21
Total liabilities decreased to NT$25.85 billion in 3Q08. The decrease was primarily due to the NT$9.38 billion cash dividend distribution. UMC's Debt to Equity ratio was decreased to 13% at the end of 3Q08.
Liabilities
(Amount: NT$ billion) 3Q08 2Q08 3Q07
Total Current Liabilities 14.64 25.22 93.73
Accounts Payable 3.84 4.62 5.32
Short-term Credit / Bonds -- 0.46 22.92
Others 10.80 20.14 65.49
Long-term Liabilities 7.50 7.54 7.65
Total Liabilities 25.85 36.48 105.05
Debt to Equity 13% 18% 43%
Analysis of Revenue (Note 3)
The percentage of revenue from the North America region increased to 60%, mainly due to the higher wafer shipment in communication applications.
Revenue Breakdown by Region
Region 3Q08 2Q08 1Q08 4Q07 3Q07
North America 60% 50% 58% 51% 49%
Asia Pacific 32% 35% 29% 37% 40%
Europe 6% 13% 11% 10% 9%
Japan 2% 2% 2% 2% 2%
The percentage of revenue from advanced 65nm business increased to 7%,
compared to 5% in 2Q08, mainly due to the stronger demand for leading
communication and computer chips. The percentage of revenue from 90nm and
below was 38% in 3Q08.
Revenue Breakdown by Geometry
Geometry 3Q08 2Q08 1Q08 4Q07 3Q07
65nm 7% 5% 7% 3% 1%
90nm 31% 31% 30% 23% 24%
90nm < x <= 0.13um 20% 21% 21% 22% 23%
0.13um < x <= 0.18um 21% 20% 22% 27% 26%
0.18um < x <= 0.35um 16% 18% 14% 18% 20%
0.5um and above 5% 5% 6% 7% 6%
The percentage of revenue from fabless customers increased to 74% in 3Q08 mainly due to the increased demand from North America fabless companies.
Revenue Breakdown by Customer Type
Customer Type 3Q08 2Q08 1Q08 4Q07 3Q07
Fabless 74% 71% 70% 76% 73%
IDM 26% 29% 30% 24% 27%
System 0% 0% 0% 0% 0%
Revenue from the communication segment increased to 59% of total revenue in 3Q08 due to the higher revenue for both wireless and wired applications.
Revenue Breakdown by Application (1)
Application 3Q08 2Q08 1Q08 4Q07 3Q07
Computer 16% 17% 21% 19% 18%
Communication 59% 58% 56% 56% 57%
Consumer 23% 22% 21% 23% 23%
Memory 1% 1% 1% 1% 1%
Others 1% 2% 1% 1% 1%
(1) Computer consists of ICs such as HDD controllers, DVD-ROM/CD-ROM
drives ICs, LCD drivers, graphic processors, and PDAs. Communication
consists of xDSL, DSP, WLAN, LAN controllers, handset components,
caller ID devices, etc. Consumer consists of ICs used for DVD players,
game consoles, digital cameras, smart cards, toys, etc. Memory
consists of DRAM, SRAM, Flash, EPROM, ROM, and EEPROM.
Note 3: Revenue in this section represents wafer sales
Blended Average Selling Price Trend
The blended average selling price (ASP) decreased by 1% during 3Q08, due to product mix changes.
(To view ASP trend, visit http://www.umc.com/english/investors/3Q08_ASP_trend.asp )
Shipment and Utilization Rate (Note 4)
883 thousand 8-inch equivalent wafers were shipped in 3Q08, a 1% increase from 875 thousand 8-inch equivalents shipped in the previous quarter. Overall utilization rate for the quarter was 79%.
Wafer Shipments
3Q08 2Q08 1Q08 4Q07 3Q07
Wafer Shipments
('000 8-inch eq.) 883 875 807 921 1,017
Quarterly Capacity Utilization Rate
3Q08 2Q08 1Q08 4Q07 3Q07
Utilization Rate 79% 85% 73% 86% 93%
Total Capacity
('000 8-inch eq.) 1,149 1,107 1,100 1,100 1,095
Note 4: Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
Capacity (Note 5)
Total capacity during the third quarter was 1,149 thousand 8-inch equivalent wafers. Compared to 2Q08, the increase of 42 thousand 8-inch equivalent wafers was due to capacity expansion at Fab 12A, Fab 12i and some 200mm fabs. Estimated installed capacity in the fourth quarter is 1,151 thousand 8-inch equivalent wafers. 2008 full-year capacity is estimated to be 5% up from that of 2007.
Annual Capacity in thousands of 8-inch wafer equivalents
FAB Geometry 2008E 2007 2006 2005
(um)
Fab 6A 6" 3.5 - 0.45 328 328 328 344
Fab 8AB 8" 0.5 - 0.25 816 816 816 816
Fab 8C 8" 0.35 - 0.15 411 400 400 401
Fab 8D 8" 0.18 - 0.09 263 260 252 274
Fab 8E 8" 0.5 - 0.18 408 408 406 404
Fab 8F 8" 0.25 - 0.15 372 372 372 378
Fab 8S (1) 8" 0.25 - 0.15 291 276 276 278
Fab 12A 12" 0.18 - 0.065 876 847 754 597
Fab 12i (2) 12" 0.13 - 0.065 742 601 413 363
Total (3) 4,507 4,308 4,017 3,855
YoY Growth Rate 5% 7% 4% 22%
Quarterly Capacity in thousands of 8-inch wafer equivalents
FAB 4Q08E 3Q08 2Q08 1Q08
Fab 6A 82 82 82 82
Fab 8AB 204 204 204 204
Fab 8C 111 108 101 100
Fab 8D 60 63 66 65
Fab 8E 102 102 102 102
Fab 8F 93 93 93 93
Fab 8S 75 75 72 69
Fab 12A 222 220 218 216
Fab 12i 202 202 169 169
Total (3) 1,151 1,149 1,107 1,100
(1) Former fab of SiSMC, which was acquired from Silicon Integrated
Systems in July 2004.
(2) Former fab of UMCi, a UMC wholly owned subsidiary in December 2004
that was merged into UMC in April 2005
(3) One 6-inch wafer is converted into 0.5625(6sq/8sq) 8-inch equivalent
wafer; one 12-inch wafer is converted into 2.25 (12sq/8sq) 8-inch
equivalent wafers.
Note 5: Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp up.
CAPEX
CAPEX plans for 2008 are revised down to US$400-500 million. By the end of the third quarter, UMC's year-to-date CAPEX totaled US$308 million.
UMC Capital Expenditure by Year -- in US$ billion
Year 2007 2006 2005 2004 2003 2002
CAPEX $0.9 $1.0 $0.7(1) $1.5 $0.4 $0.8
2008 CAPEX Plan
8"fab 12"fab 12"R&D Total
UMC 16% 52% 32% US$400-500 million
(1) 2005 CAPEX contained UMC 2005 full year CAPEX and UMCi CAPEX during
1Q05.
Recent Developments / Announcements
Oct. 27, 2008 UMC Announces Foundry Industry's First 28nm SRAMs
Sep. 29, 2008 UMC Names Arthur Kuo as Senior Vice President of UMC-USA
Sep. 08, 2008 UMC Selected as a Global Index Component for Down Jones
Sustainability Indexes
Aug. 27, 2008 UMC Announces Share Buy-Back Program
Aug. 04, 2008 UMC's Embedded DRAM, URAM(TM) Proven in 65nm Customer
Silicon
Please visit UMC's website http://www.umc.com/english/news/index.asp for further details regarding the above announcements.
Fourth Quarter of 2008 Outlook & Guidance
Quarter-over-quarter Guidance:
-- Wafer Shipments: to decrease by approximately 25% points
-- Wafer ASP in NT$: to increase by approximately 5% points
-- Capacity Utilization Rates: approximately 55%
-- Profitability: gross profit margin to be approximately 10%
-- Sales breakdown by three major applications remains unchanged
-- 2008 Capex Budget: US$400-500 million
Conference Call / Webcast Announcement
Wednesday, October 29, 2008
Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 12:00 Noon (London)
Dial-in numbers and Access Codes:
USA Toll Free: 1 866 549 1292
Hong Kong and Other Areas: +852 3005 2050
Access Code: UMC
A live webcast and replay of the 3Q08 results announcement will be available at http://www.umc.com under the "Investor Relations \ Investor Events" section.
About UMC
UMC (NYSE: UMC) (TSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing services for applications spanning every major sector of the IC industry. UMC's customer-driven foundry solution allow chip designers to leverage the strength of the company's leading-edge processes, which include production proven 65nm, 45/40nm, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. The company employs approximately 13,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at http://www.umc.com .
Safe Harbor Statements
Except for statements in respect of historical matters, the statements in this release contain "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward- looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors, including, among other things: our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; the risks associated with international global business activities; our dependence upon key personnel; general economic and political conditions, including those related to the semiconductor, communications, consumer electronics and computer industries; possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; reduced end-user purchases relative to expectations and orders; fluctuations in foreign currency exchange rates; and those risks identified in the section entitled "Risk Factors" in UMC's Annual Report on Form 20-F ("20-F") for the year ended December 31, 2007 filed with the U.S. Securities and Exchange Commission on May 2, 2008.
The financial statements included in this release are unaudited and unconsolidated, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between ROC GAAP and US GAAP, as described in note 35 to the financial statements on 20-F.
The forward-looking statements in this release reflect the current belief of UMC as of the date of this release and UMC undertakes no obligation to update these forward-looking statements for events or circumstances that occur after such date or to reflect the occurrence of unanticipated events.
-- FINANCIAL TABLES TO FOLLOW --
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Balance Sheet
As of Sep 30, 2008
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Sep 30, 2008
US$ NT$ %
ASSETS
Current Assets
Cash and Cash Equivalents 782 25,194 11.2%
Financial assets at fair value
through profit or loss, current 60 1,939 0.9%
Notes & Accounts Receivable 438 14,120 6.3%
Inventories 365 11,762 5.2%
Other Current Assets 58 1,877 0.8%
Total Current Assets 1,703 54,892 24.4%
Non-Current Assets
Funds and Long-term Investments 1,616 52,061 23.2%
Property, Plant and Equipment 3,326 107,171 47.7%
Intangible Assets 116 3,745 1.7%
Other Assets 207 6,654 3.0%
Total Non-Current Assets 5,265 169,631 75.6%
TOTAL ASSETS 6,968 224,523 100.0%
LIABILITIES
Current Liabilities
Financial liabilities at fair value
through profit or loss, current 6 176 0.1%
Payables 441 14,221 6.3%
Other Current Liabilities 7 239 0.1%
Total Current Liabilities 454 14,636 6.5%
Non-Current Liabilities
Bonds Payable 233 7,496 3.3%
Other Liabilities 115 3,721 1.7%
Total Non-Current Liabilities 348 11,217 5.0%
TOTAL LIABILITIES 802 25,853 11.5%
STOCKHOLDERS' EQUITY
Capital Stock 4,203 135,435 60.3%
Additional Paid-in Capital 1,872 60,321 26.9%
Retained Earnings, Unrealized Gain
on Financial Assets and
Translation Adjustment 372 11,995 5.3%
Treasury Stock (281) (9,081) (4.0%)
TOTAL STOCKHOLDERS' EQUITY 6,166 198,670 88.5%
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY 6,968 224,523 100.0%
Note: New Taiwan Dollars have been translated into U.S. Dollars at
the September 30, 2008 exchange rate of NT $32.22 per U.S.
Dollar.
All figures are in ROC GAAP.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison
Three-Month Period Ended
Sep 30, 2008 Sep 30, 2007 %
US$ NT$ US$ NT$ Chg.
Net Sales 768 24,748 963 31,028 (20.2%)
Cost of Goods Sold (633) (20,380) (708) (22,805) (10.6%)
Net Gross Profit 135 4,368 255 8,223 (46.9%)
17.6% 17.6% 26.5% 26.5% --
Operating Expenses
-- Sales & Marketing 21 673 29 922 (27.0%)
-- General & Administrative 20 639 23 753 (15.1%)
-- Research & Development 65 2,109 72 2,313 (8.8%)
106 3,421 124 3,988 (14.2%)
Operating Income (Loss) 29 947 131 4,235 (77.6%)
3.8% 3.8% 13.6% 13.6% --
Net Non-Operating Income
(Expenses) (65) (2,105) 179 5,764 (136.5%)
Income (Loss) from continuing
operations before income tax (36) (1,158) 310 9,999 (111.6%)
(4.7%) (4.7%) 32.2% 32.2% --
Income Tax (Expense) Benefit (8) (255) (23) (766) (66.7%)
Net Income (Loss) (44) (1,413) 287 9,233 (115.3%)
(5.7%) (5.7%) 29.8% 29.8% --
Earnings per Share (0.003) (0.11) 0.017 0.55 --
Earnings per ADS (2) (0.017) (0.55) 0.085 2.75 --
Weighted Average Number of Shares
Outstanding (in millions) -- 13,130 -- 15,412 --
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Quarter over Quarter Comparison
Three-Month Period Ended
Sep 30, 2008 Jun 30, 2008 %
US$ NT$ US$ NT$ Chg.
Net Sales 768 24,748 783 25,238 (1.9%)
Cost of Goods Sold (633) (20,380) (603) (19,443) 4.8%
Net Gross Profit 135 4,368 180 5,795 (24.6%)
17.6% 17.6% 23.0% 23.0% --
Operating Expenses
- Sales & Marketing 21 673 19 620 8.6%
- General & Administrative 20 639 23 744 (14.1%)
- Research & Development 65 2,109 65 2,090 0.9%
106 3,421 107 3,454 (1.0%)
Operating Income (Loss) 29 947 73 2,341 (59.5%)
3.8% 3.8% 9.3% 9.3% --
Net Non-Operating Income
(Expenses) (65) (2,105) 3 120 (1,854.2%)
Income (Loss) from continuing
operations before income tax (36) (1,158) 76 2,461 (147.1%)
(4.7%) (4.7%) 9.8% 9.8% --
Income Tax (Expense) Benefit (8) (255) (2) (64) 298.4%
Net Income (Loss) (44) (1,413) 74 2,397 (158.9%)
(5.7%) (5.7%) 9.5% 9.5% --
Earnings per Share (0.003) (0.11) 0.006 0.18 --
Earnings per ADS (2) (0.017) (0.55) 0.028 0.90 --
Weighted Average Number of Shares
Outstanding (in millions) -- 13,130 -- 13,172 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
September 30, 2008 exchange rate of NT$32.22 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month
Period Ended For the year Ended
Sep 30, 2008 Sep 30, 2008
US$ NT$ % US$ NT$ %
Net Sales 768 24,748 100.0% 2,296 73,989 100.0%
Cost of Goods Sold (633) (20,380) (82.4%) (1,870) (60,250) (81.4%)
Net Gross Profit 135 4,368 17.6% 426 13,739 18.6%
Operating Expenses
- Sales & Marketing 21 673 2.7% 62 2,009 2.7%
- General &
Administrative 20 639 2.6% 63 2,019 2.7%
- Research &
Development 65 2,109 8.5% 193 6,233 8.5%
106 3,421 13.8% 318 10,261 13.9%
Operating Income (Loss) 29 947 3.8% 108 3,478 4.7%
Net Non-Operating Income
(Expenses) (65) (2,105) (8.5%) (59) (1,914) (2.6%)
Income (Loss) from
continuing operations
before income tax (36) (1,158) (4.7%) 49 1,564 2.1%
Income Tax (Expense)
Benefit (8) (255) (1.0%) (12) (374) (0.5%)
Net Income (Loss) (44) (1,413) (5.7%) 37 1,190 1.6%
Earnings per Share (0.003) (0.11) -- 0.003 0.09 --
Earnings per ADS (2) (0.017) (0.55) -- 0.014 0.45 --
Weighted Average Number
of Shares Outstanding
(in millions) -- 13,130 -- -- 13,158 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
September 30, 2008 exchange rate of NT$32.22 per U.S. Dollar. All
figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Statement of Cash Flows
For The Nine Months Ended Sep 30, 2008
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
Cash flows from operating activities
Net Income 37 1,190
Depreciation & Amortization 876 28,233
Loss on decline in market value
and obsolescence of inventories 11 369
Cash dividends received under the
equity method 15 493
Investment loss accounted for
under the equity method 2 50
Loss on valuation of financial
assets and liabilities 85 2,744
Impairment loss 103 3,308
Gain on disposal of investments (55) (1,787)
Gain on disposal of property,
plant and equipment (1) (26)
Exchange gain on financial assets
and liabilities (0) (8)
Exchange gain on long-term liabilities (5) (179)
Amortization of bond discounts 0 7
Amortization of deferred income (4) (124)
Change in assets, liabilities and others (69) (2,224)
Net cash provided by operating activities 995 32,046
Cash flows from investing activities:
Proceeds from disposal of
available-for-sales financial assets 60 1,939
Acquisition of financial assets
measured at cost (7) (216)
Acquisition of long-term
investments accounted for under
the equity method (45) (1,445)
Proceeds from liquidation of
long-term investments 6 198
Acquisition of property, plant
and equipment (308) (9,951)
Proceeds from disposal of
property, plant and equipment 3 107
Increase in deferred charges (19) (628)
Decrease in other assets -- others 0 2
Net cash used in investing activities (310) (9,994)
Cash flows from financing activities:
Redemption of bonds (705) (22,717)
Cash dividends (291) (9,383)
Payment of employee bonus (9) (286)
Remuneration paid to directors
and supervisors (0) (12)
Purchase of treasury stock (65) (2,087)
Decrease in deposits-in (0) (6)
Net cash used in financing activities (1,070) (34,491)
Effect of exchange rate changes on
cash and cash equivalents 5 180
Net decrease in cash and cash equivalents (380) (12,259)
Cash and cash equivalents at
beginning of period 1,162 37,453
Cash and cash equivalents at end of period 782 25,194
Note: (1) New Taiwan Dollars have been translated into U.S. Dollars at the
September 30, 2008 exchange rate of NT$32.22 per U.S. Dollar.
All figures are in ROC GAAP.
Contacts:
Bowen Huang or I Cheng Lu
UMC, Investor Relations
Tel: +886-2-2700-6999 ext. 6957
Email: bowen_huang@umc.com or i_cheng_lu@umc.com
Web site: http://www.umc.com/