During 3Q14, foundry revenue increased 2.9% QoQ to NT$33.51 billion while New Business segment revenue, mainly consisting of solar subsidiary companies, decreased 48.2% sequentially to NT$1.72 billion, leading to a consolidated revenue of NT$35.21 billion, a 1.8% quarterly decline. Gross profit was NT$7.56 billion, or 21.5% of revenue. Operating income was NT$1.69 billion, or 4.8% of consolidated revenue, primarily due to a NT$602 million net other operating expense, mainly from an impairment loss in a solar subsidiary company during 3Q14. Net income attributable to the stockholders of the parent in 3Q14 was NT$2.92 billion, compared to NT$3.48 billion in 2Q14.

Earnings per ordinary share for the quarter were NT$0.23. Earnings per ADS were US$0.038. The basic weighted average number of outstanding shares in 3Q14 was 12,500,808,739, compared with 12,489,095,718 shares in 2Q14 and 12,459,978,088 shares in 3Q13. The diluted weighted average number of outstanding shares was 12,582,502,645 in 3Q14, compared with 12,607,860,758 shares in 2Q14 and 13,201,315,449 shares in 3Q13. The fully diluted share count on September 30, 2014 was approximately 12,781,655,000. On September 30, 2014, UMC held 200 million treasury shares acquired from the 15th share buy-back programs.

Detailed Financials Section

Foundry revenue increased by 2.9% to NT$33.51 billion due to sustained demand while New Business segment declined 48.2% to NT$1.72 billion due to a global slowdown in the solar sector, resulting in consolidated revenue of NT$35.21 billion. Cost of goods sold remained relatively flat from last quarter. Research and development expenses increased 4.3% to NT$3.47 billion. Net other operating expenses of NT$602 million was mostly due to an impairment loss from a solar subsidiary company.