HSINCHU, Taiwan, Nov. 10, 2016 /PRNewswire-FirstCall/ --
3Q16 Highlights (as compared to 2Q16):
- Net Revenue of US$160.4 Million Compared to US$151.2 Million
- Gross Profit Was US$30.5 Million Compared to US$25.5 Million
- Gross Margin of 19.0% Compared to 16.9%
- Results Reflect 858.968 Million Shares Outstanding on a Fully Diluted Basis for ChipMOS Taiwan Compared to 27.583 Million Shares Outstanding on a Fully Diluted Basis for the former ChipMOS Bermuda at the End of 2Q16
- Net Earnings of US$0.01 Per Basic Common Share and US$0.01 Per Diluted Common Share Compared to US$0.01 Per Basic Common Share and US$0.01 Per Diluted Common Share
- Net Income for The Third Quarter of 2016 Adversely Impacted by US$5.5 million or US$0.01 Per Basic Common Share in Foreign Exchange Losses
- US$0.6 Million in Share Repurchase Pursuant to the Board's Authorization in May
- Retained Balance of Cash and Cash Equivalents at US$331.6 Million Compared to US$355.0 Million, with Net Cash Balance of US$25.0 Million
- Board of Directors Approves Cash Dividend Payable on December 19 to Shareholders of Record on December 3 (NT$2.0 Cash Dividend Without and NT$1.5 Cash Dividend With Unigroup Private Placement)
ChipMOS TECHNOLOGIES INC. ("ChipMOS", "ChipMOS Taiwan" or the "Company") (Taiwan Stock Exchange: 8150 and NASDAQ: IMOS), an industry leading provider of outsourced semiconductor assembly and test services ("OSAT"), today reported unaudited consolidated financial results for the third quarter ended September 30, 2016. All U.S. dollar figures in this release are based on the exchange rate of NT$31.27 against US$1.00 as of September 30, 2016. The merger (the "Merger") of ChipMOS Bermuda with and into its subsidiary ChipMOS Taiwan was completed on October 31, 2016. Financial results included in this press release are for the third quarter of 2016 results of the former ChipMOS Taiwan, which may not be comparable to results in press releases of ChipMOS Bermuda in prior periods. Results are based on 858.968 million shares outstanding on a fully diluted basis for ChipMOS Taiwan as compared to 27.583 million shares outstanding on a fully diluted basis for the former ChipMOS Bermuda at the end of 2Q16.
All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("T-IFRS").
Net revenue for the third quarter of 2016 was NT$5,015.6 million or US$160.4 million, an increase of 6.1% from NT$4,727.1 million or US$151.2 million in the second quarter of 2016 and an increase of 3.9% from NT$4,827.1 million or US$154.4 million for the same period in 2015.
Net income attributable to equity holders of the Company for the third quarter of 2016 was NT$255.1 million or US$8.2 million, and NT$0.30 or US$0.01 per basic common share and NT$0.30 or US$0.01 per diluted common share, as compared to net income attributable to equity holders of the Company for the second quarter of 2016 of NT$314.9 million or US$10.1 million, and NT$0.37 or US$0.01 per basic common share and NT$0.36 or US$0.01 per diluted common share, and compared to net income attributable to equity holders of the Company in the third quarter of 2015 of NT$583.5 million or US$18.7 million, and NT$0.65 or US$0.02 per basic common share and NT$0.65 or US$0.02 per diluted common share. Net income for the third quarter of 2016 was adversely impacted by US$5.5 million or US$0.01 per basic common share in foreign exchange losses.
The unaudited consolidated financial results of ChipMOS for the third quarter ended September 30, 2016 included the financial results of ChipMOS U.S.A., Inc. and ChipMOS TECHNOLOGIES (BVI) LTD. and its wholly-owned subsidiary ChipMOS TECHNOLOGIES (Shanghai) LTD. ("ChipMOS Shanghai").
S.J. Cheng, Chairman and Chief Executive Officer of ChipMOS, said, "We are pleased to be reporting today as the newly merged ChipMOS Taiwan and ChipMOS Bermuda. We are now able to focus all of our efforts on the priority opportunities that we expect will drive our growth and ultimately create value for shareholders. Revenue for the third quarter came in at the high-end of our guidance, up 6.1% as compared to Q2. We are benefitting from strong DDI demand in small panels. This uptick started in late Q216 and is expected to continue through Q416 due to inventory tightness across the supply chain. We expect this to be one of many favorable catalysts in our business. We are also pleased with the timing of capacity adds in our bumping business, which increased to 78% utilization from 67% in the prior quarter even as we absorbed the new capacity coming online. Our memory services also saw demand strength led by DRAM and flash, including Mask ROM, while revenue of our mixed signal business grew near 20% sequentially. Overall, we are confident in the prospects for our business, with utilization levels expected to trend higher through the first half of 2017 based on customer feedback, an expected inventory replenishment, and higher demand for our MEMS, finger print sensor, touch driver, AMOLED, and OLED testing and assembly services. We also remain fully focused on moving forward with our expansion in China and look forward to updating you on our progress. Finally, our Board of Directors approved a cash dividend payable on December 19 to shareholders of record of December 3 (NT$2.0 per share without and NT$1.5 per share with Unigroup Private Placement). We will continue to evaluate the capital needs of our business and will also consider the reinstatement of our share repurchase, if and when the Board determines the timing appropriate in relation to our other capital needs, including the expansion in China and ongoing CapEx needs as we support existing and forecast customer demand levels. Based on the Taiwan Securities and Exchange Act, in relation to the declaration and distribution of a dividend, we cannot repurchase shares during the period from the notification to two days before the book closure date. As a result, the Company is not allowed to repurchase its own shares prior to November 27 ."
