Inventory correction dampening 4Q15 demand; cyclical bottom approaching
(PRNewswire) —Third Quarter 2015 Overview[1]:
- Revenue: NT$35.32 billion (US$1.07 billion)
- Gross margin: 19.6%; operating margin: 2.8%
- Foundry revenue from advanced nodes: 10% from 28nm, 25% from 40nm
- Foundry capacity utilization rate: 89%
- Net income attributable to the stockholders of the parent: NT$1.71 billion (US$52 million)
- Earnings per share: NT$0.14; earnings per ADS: US$0.021
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the third quarter of 2015.
Revenue was NT$35.32 billion, with gross margin at 19.6% and operating margin at 2.8%. Net income attributable to the stockholders of the parent was NT$1.71 billion, with earnings per ordinary share of NT$0.14.
Po-Wen Yen, CEO of UMC, said "In the third quarter of 2015, our foundry segment posted revenue of NT$35.08 billion, with gross margin at 20.3%. Wafer shipments totaled 1.47 million 8-inch equivalent wafers, leading to an overall capacity utilization rate of 89%. Our 40nm revenue contribution grew to 25% of sales, driven by demand strength in the communication and consumer segments. Our 8" fab utilization maintained above 95%, reflecting stable demand for logic and specialty applications. To better take advantage of the opportunities within mature nodes, UMC will leverage the advancements made in proven technologies to help customers compete in the IoT market. We recently announced volume production for touch controller ICs based on UMC's 0.11um embedded flash process that uses the most aggressive aluminum metal design rules to strengthen customers' product and market competitiveness through lower die cost. In terms of corporate sustainability, in the third quarter 2015, UMC was selected as a DJSI global component for the eighth consecutive year."
CEO Yen continued, "Although the continuing IC inventory adjustment will dampen fourth quarter wafer shipments, UMC continues on the path towards long-term growth. While Moore's Law continues, 28nm remains a strong and long-lasting node, with many applications migrating to this geometry. Throughout 2015, UMC engineers and Fab12A have worked tirelessly to bring several new 28nm product tape-outs into volume production. At the same time, we have also received multiple customer inquiries requesting optimized, cost-effective solutions derived from our fundamental 28nm High-K Metal Gate process. UMC is working to bring a timely conversion of new 28nm requirements into production, which will strengthen our business. In addition, UMC is also leveraging mature node technology development to deliver specialty technology platforms addressing customer applications, further diversifying our product mix. Going forward, UMC will continue to drive process innovations across leading and legacy technologies, as well as proactively expanding worldwide manufacturing services to support our growth in the IC industry."
Summary of Operating Results
|
Operating Results | |||||
|
(Amount: NT$ million) |
3Q15 |
2Q15 |
QoQ %
|
3Q14 |
YoY %
|
|
Net Operating Revenues |
35,320 |
38,012 |
(7.1) |
35,214 |
0.3 |
|
Gross Profit |
6,911 |
8,723 |
(20.8) |
7,559 |
(8.6) |
|
Operating Expenses |
(5,126) |
(4,864) |
5.4 |
(5,270) |
(2.7) |
|
Net Other Operating Income and Expenses |
(804) |
17 |
- |
(602) |
33.6 |
|
Operating Income |
981 |
3,876 |
(74.7) |
1,687 |
(41.8) |
|
Net Non-Operating Income and Expenses |
410 |
1,304 |
(68.6) |
1,305 |
(68.6) |
|
Net Income Attributable to Stockholders of the Parent |
1,708 |
4,600 |
(62.9) |
2,916 |
(41.4) |
|
EPS (NT$ per share) |
0.14 |
0.37 |
|
0.23 |
|
|
(US$ per ADS) |
0.021 |
0.056 |
|
0.035 |
|
In 3Q15, the foundry segment posted NT$35.08 billion in revenue. Consolidated revenue for the quarter was NT$35.32 billion, down 7.1% from 2Q15, reflecting the semiconductor inventory correction. Net income from the foundry business totaled NT$1.75 billion. On a consolidated basis, gross profit reached NT$6.91 billion, or 19.6% of revenue, while operating income was NT$0.98 billion or 2.8% of revenue. Net income attributable to the stockholders of the parent was NT$1.71 billion, compared to NT$4.60 billion in 2Q15.
Earnings per ordinary share for the quarter were NT$0.14. Earnings per ADS were US$0.021. The basic weighted average number of outstanding shares in 3Q15 was 12,524,504,594, compared with 12,572,497,200 shares in 2Q15 and 12,500,808,739 shares in 3Q14. The diluted weighted average number of outstanding shares was 13,694,010,855 in 3Q15, compared with 13,222,544,584 shares in 2Q15 and 12,582,502,645 shares in 3Q14. The fully diluted share count on September 30, 2015 was approximately 13,858,726,000. In the third quarter, UMC purchased approximately 200 million shares from the 16th share buy-back program. As a result, on September 30, 2015, UMC held 334 million treasury shares.
Detailed Financials Section
|
COGS & Expenses | |||||
|
(Amount: NT$ million) |
3Q15 |
2Q15 |
QoQ %
|
3Q14 |
YoY %
|
|
Net Operating Revenues |
35,320 |
38,012 |
(7.1) |
35,214 |
0.3 |
|
COGS |
(28,409) |
(29,289) |
(3.0) |
(27,655) |
2.7 |
|
Depreciation |
(9,654) |
(9,404) |
2.7 |
(8,483) |
13.8 |
|
Other Mfg. Costs |
(18,755) |
(19,885) |
(5.7) |
(19,172) |
(2.2) |
|
Gross Profit |
6,911 |
8,723 |
(20.8) |
7,559 |
(8.6) |
|
Gross Margin (%) |
19.6% |
22.9% |
|
21.5% |
|
|
Operating Expenses |
(5,126) |
(4,864) |
5.4 |
(5,270) |
(2.7) |
|
G&A |
(942) |
(919) |
2.5 |
(845) |
11.5 |
|
Sales & Marketing |
(1,045) |
(930) |
12.4 |
(957) |
9.2 |
|
R&D |
(3,139) |
(3,015) |
4.1 |
(3,468) |
(9.5) |
|
Net Other Operating Income & Expenses |
(804) |
17 |
- |
(602) |
33.6 |
|
Operating Income |
981 |
3,876 |
(74.7) |
1,687 |
(41.8) |
Consolidated revenue during the quarter was NT$35.32 billion. Depreciation grew 2.7% QoQ to NT$9.65 billion, mainly due to 28nm capacity expansion. Other manufacturing costs decreased 5.7% sequentially to NT$18.76 billion. Operating expenses increased 5.4% from 2Q15 to NT$5.13 billion. Sales & marketing expenses rose 12.4% QoQ, which included higher mask expenses. R&D expenses grew 4.1% sequentially to NT$3.14 billion, including higher costs for 28nm and 14nm engineering wafers. Net operating income was NT$0.98 billion.
|
Non-Operating Income and Expenses | |||
|
(Amount: NT$ million) |
3Q15 |
2Q15 |
3Q14 |
|
Non-Operating Income and Expenses |
410 |
1,304 |
1,305 |
|
Net Interest Income and Expenses |
(23) |
(46) |
(8) |
|
Net Investment Gain and Loss |
(396) |
(247) |
487 |
|
Gain and Loss on Disposal of Investment |
612 |
1,319 |
580 |
|
Exchange Gain and Loss |
471 |
11 |
114 |
|
Other Gain and Loss |
(254) |
267 |
132 |
Net non-operating income in 3Q15 totaled NT$410 million. Gains recognized on disposal of investment and exchange reached NT$612 million and NT$471 million respectively. Net investment loss of NT$396 million included a NT$216 million loss recognized from the holdings of Unimicron. Other losses of NT$254 million represented the loss of valuation in financial liabilities.
|
Cash Flow Summary | ||
|
(Amount: NT$ million) |
For the 3-Month Period Ended Sep. 30, 2015 |
For the 3-Month Period Ended Jun. 30, 2015 |
|
Cash Flow from Operating Activities |
16,286 |
11,459 |
|
Net income before tax |
1,391 |
5,180 |
|
Depreciation & Amortization |
11,592 |
11,194 |
|
Bad debt reversal |
(4) |
(173) |
|
Net loss (gain) of financial assets at FVTPL |
321 |
(36) |
|
Gain on disposal of investments |
(612) |
(1,319) |
|
Impairment loss on financial assets |
744 |
416 |
|
Impairment loss on non-financial assets |
795 |
- |
|
Exchange loss (gain) on financial assets and liabilities |
83 |
(204) |
|
Changes in working capital |
2,241 |
(2,066) |
|
Income tax paid |
(574) |
(1,305) |
|
Other |
309 |
(228) |
|
Cash Flow from Investing Activities |
(20,416) |
(14,757) |
|
Capital expenditures |
(20,227) |
(12,034) |
|
Acquisition of available-for-sale financial assets |
(235) |
(665) |
|
Proceeds from disposal of available-for-sale financial assets |
645 |
519 |
|
Proceeds from capital reduction and liquidation of investments |
294 |
0 |
|
Disposal of subsidiaries |
- |
(835) |
|
Acquisition of intangible assets |
(230) |
(349) |
|
Changes in refundable deposits |
(57) |
(1,286) |
|
Changes in other noncurrent assets |
(589) |
(54) |
|
Other |
(17) |
(53) |
|
Cash Flow from Financing Activities |
(9,822) |
13,824 |
|
Bank loans |
330 |
(5,253) |
|
Bonds Issued |
- |
18,425 |
|
Treasury stock acquired |
(2,203) |
- |
|
Treasury stock sold to employees |
- |
677 |
|
Acquisition of subsidiaries |
(935) |
- |
|
Cash Dividends |
(6,939) |
- |
|
Other |
(75) |
(25) |
|
Effect of Exchange Rate |
2,049 |
(443) |
|
Net Cash Flow |
(11,903) |
10,083 |
|
Beginning balance |
64,046 |
53,632 |
|
Changes in non-current assets held for sale |
- |
331 |
|
Ending Balance |
52,143 |
64,046 |
Cash inflow from operations was NT$16.29 billion. Cash outflow from investing activities totaled NT$20.42 billion, including NT$20.23 billion CAPEX spending for the foundry segment, resulting in a free cash outflow of NT$3.94 billion. Cash outflow from financing activities reached NT$9.82 billion, mainly from a NT$6.94 billion issuance of cash dividends and a NT$2.20 billion purchase of treasury shares. Over the next 12 months, the company expects to repay NT$6.31 billion in bank loans.
|
Current Assets | |||
|
(Amount: NT$ billion) |
3Q15 |
2Q15 |
3Q14 |
|
Cash and Cash Equivalents |
52.14 |
64.05 |
42.74 |
|
Notes & Accounts Receivable |
19.76 |
21.44 |
21.93 |
|
Days Sales Outstanding |
53 |
50 |
56 |
|
Inventories, net |
16.56 |
16.05 |
14.31 |
|
Days of Inventory |
52 |
49 |
46 |
|
Total Current Assets |
95.03 |
109.22 |
91.08 |
Cash and cash equivalents decreased to NT$52.14 billion, mainly from a NT$6.94 billion issuance of cash dividends and a NT$2.20 billion acquisition of treasury shares. Days sales outstanding and days of inventory both increased 3 days in 3Q15, to 53 and 52 days respectively.
|
Liabilities | |||
|
(Amount: NT$ billion) |
3Q15 |
2Q15 |
3Q14 |
|
Total Current Liabilities |
44.47 |
43.49 |
45.44 |
|
Notes & Accounts Payable |
6.34 |
6.47 |
6.75 |
|
Short-Term Credit / Bonds |
8.84 |
5.33 |
15.26 |
|
Payables on Equipment |
14.08 |
9.30 |
10.40 |
|
Dividends payable |
- |
6.94 |
- |
|
Other |
15.21 |
15.45 |
13.03 |
|
Long-Term Credit / Bonds |
47.79 |
50.75 |
31.98 |
|
Long-Term Investment Liabilities |
6.24 |
5.98 |
- |
|
Total Liabilities |
105.21 |
106.87 |
84.43 |
|
Debt to Equity |
47% |
48% |
39% |
Current liabilities increased to NT$44.47 billion, from the net result of an NT$4.78 billion increase in payables on equipment, an NT$3.51 billion increase in short-term credit and a reduction of NT$6.94 billion from the payment of cash dividends. The reclassification of long-term credit to short-term credit decreased long-term credit/bonds to NT$47.79 billion. Debt to equity ratio decreased to 47%.
Analysis of Revenue[2] for Foundry Segment
|
Revenue Breakdown by Region | |||||
|
Region |
3Q15 |
2Q15 |
1Q15 |
4Q14 |
3Q14 |
|
North America |
45% |
46% |
47% |
45% |
45% |
|
Asia Pacific |
41% |
42% |
40% |
42% |
44% |
|
Europe |
6% |
6% |
7% |
8% |
6% |
|
Japan |
8% |
6% |
6% |
5% |
5% |
North America and Asia- Pacific revenue contribution in 3Q15 decreased 1% in each region, to 45% and 41% respectively.
|
Revenue Breakdown by Geometry | |||||
|
Geometry |
3Q15 |
2Q15 |
1Q15 |
4Q14 |
3Q14 |
|
28nm and below |
10% |
11% |
9% |
7% |
3% |
|
28nm<x<=40nm |
25% |
22% |
24% |
21% |
24% |
|
40nm<x<=65nm |
21% |
21% |
23% |
24% |
26% |
|
65nm<x<=90nm |
4% |
6% |
5% |
7% |
7% |
|
90nm<x<=0.13um |
14% |
14% |
13% |
14% |
14% |
|
0.13um<x<=0.18um |
11% |
12% |
12% |
12% |
12% |
|
0.18um<x<=0.35um |
12% |
11% |
11% |
12% |
11% |
|
0.5um and above |
3% |
3% |
3% |
3% |
3% |
28nm revenue contribution stayed flat, accounting for 10% of revenue in 3Q15. 40nm revenue represented 25% of sales.
|
Revenue Breakdown by Customer Type | |||||
|
Customer Type |
3Q15 |
2Q15 |
1Q15 |
4Q14 |
3Q14 |
|
Fabless |
88% |
89% |
90% |
90% |
91% |
|
IDM |
12% |
11% |
10% |
10% |
9% |
Revenue from fabless customers decreased to 88%.
|
Revenue Breakdown by Application (1) | |||||
|
Application |
3Q15 |
2Q15 |
1Q15 |
4Q14 |
3Q14 |
|
Computer |
11% |
12% |
13% |
14% |
15% |
|
Communication |
55% |
55% |
56% |
54% |
54% |
|
Consumer |
27% |
28% |
26% |
28% |
28% |
|
Others |
7% |
5% |
5% |
4% |
3% |
Communication business continued to account for 55% of sales in 3Q15. Revenue contribution from the consumer and computer applications decreased by 1% each, to 27% and 11% of sales respectively.
(1)Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset. Communication consists of handset components, broadband, WLAN, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc.
Blended ASP Trend for Foundry Segment
Blended average selling price (ASP) decreased slightly in 3Q15
(To view ASP trend, visit http://www.umc.com/english/investors/3Q15_ASP_trend.asp)
Shipment and Utilization Rate[3] for Foundry Segment
|
Wafer Shipments | |||||
|
|
3Q15 |
2Q15 |
1Q15 |
4Q14 |
3Q14 |
|
Wafer Shipments
|
1,467 |
1,536 |
1,481 |
1,431 |
1,462 |
|
| |||||
|
Quarterly Capacity Utilization Rate | |||||
|
|
3Q15 |
2Q15 |
1Q15 |
4Q14 |
3Q14 |
|
Utilization Rate |
89% |
94% |
93% |
93% |
93% |
|
Total Capacity
|
1,685 |
1,659 |
1,583 |
1,577 |
1,586 |
3Q15 wafer shipments decreased 4.5% to 1,467K. Quarterly capacity increased to 1,685K, resulting in an overall utilization rate of 89%.
Capacity[4] for Foundry Segment
Total capacity in the third quarter increased 1.5% to 1,685K 8-inch equivalent wafers. Continuous expansion of 28nm capacity at Fab 12A grew quarterly capacity to 206K in 3Q15 from 198K in 2Q15. The deployment of 8" capacity at Fab8N increased to 178K in 3Q15 up from 162K in 2Q15. Projected total capacity for the fourth quarter will grow to 1,690K 8-inch equivalent wafers due to continuous expansion at Fab 8N.
|
Annual Capacity in thousands of wafers |
|
Quarterly Capacity in thousands of wafers | ||||||||||
|
FAB |
Geometry
|
2015E |
2014 |
2013 |
2012 |
|
FAB |
4Q15E |
3Q15 |
2Q15 |
1Q15 | |
|
WTK* |
6" |
3.5 - 0.45 |
311 |
- |
- |
- |
|
WTK* |
99 |
99 |
113 |
- |
|
Fab 6A |
6" |
3.5 - 0.45 |
111 |
448 |
448 |
481 |
|
Fab 6A |
- |
- |
- |
111 |
|
Fab 8A |
8" |
0.5 - 0.25 |
813 |
813 |
813 |
815 |
|
Fab 8A |
204 |
204 |
204 |
201 |
|
Fab 8C |
8" |
0.35 - 0.11 |
347 |
347 |
347 |
360 |
|
Fab 8C |
87 |
87 |
87 |
86 |
|
Fab 8D |
8" |
0.13 - 0.09 |
341 |
358 |
382 |
371 |
|
Fab 8D |
86 |
86 |
86 |
84 |
|
Fab 8E |
8" |
0.5 - 0.18 |
418 |
418 |
418 |
449 |
|
Fab 8E |
105 |
105 |
105 |
103 |
|
Fab 8F |
8" |
0.18 - 0.11 |
388 |
388 |
388 |
389 |
|
Fab 8F |
98 |
98 |
98 |
96 |
|
Fab 8S |
8" |
0.18 - 0.11 |
335 |
335 |
335 |
348 |
|
Fab 8S |
84 |
84 |
84 |
83 |
|
Fab 8N |
8" |
0.5 - 0.13 |
667 |
547 |
469 |
- |
|
Fab 8N |
183 |
178 |
162 |
144 |
|
Fab 12A |
12" |
0.18 - 0.028 |
793 |
700 |
651 |
579 |
|
Fab 12A |
206 |
206 |
198 |
183 |
|
Fab 12i |
12" |
0.13 - 0.040 |
572 |
573 |
550 |
537 |
|
Fab 12i |
144 |
144 |
144 |
139 |
|
Total(1) |
6,617 |
6,323 |
6,107 |
5,514 |
|
Total |
1,690 |
1,685 |
1,659 |
1,583 | ||
|
YoY Growth Rate |
5% |
4% |
11% |
4% |
|
|
| |||||
|
| ||||||||||||
|
2012 figures account for UMC parent company only. | ||||||||||||
|
(1)One 6-inch wafer is converted into 0.5625(62/82) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25(122/82) 8-inch equivalent wafers. Capacity total figures are expressed in 8-inch equivalent wafers.*UMC sold part of plants and equipment to WTK; WTK figures represent 6-inch CMOS capacity. | ||||||||||||
CAPEX for Foundry Segment
In 3Q15, CAPEX spending was US$627 million. Capital expenditures for the three quarters reached US$1.48 billion. 2015 CAPEX will be approximately US$1.8 billion, with 87% of the amount dedicated towards 12" advanced capacity expansion.
|
Capital Expenditure by Year - in US$ billion | |||||
|
Year |
2014 |
2013 |
2012 |
2011 |
2010 |
|
CAPEX |
$ 1.4 |
$ 1.1 |
$ 1.7 |
$ 1.6 |
$ 1.8 |
|
|
|
|
|
|
|
|
2010~2012 figures account for UMC parent company only. | |||||
|
| |||||
|
2015 CAPEX Plan | |||||
|
8" |
12" |
Total | |||
|
13% |
87% |
US$1.8 billion | |||
Fourth Quarter of 2015 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To decrease by less than 5%
- ASP in US$: To decrease by approximately 1%
- Profitability: Gross profit margin will be in the high teens % range
- Foundry Segment Capacity Utilization: Approximately low 80% range
- 2015 CAPEX for Foundry Segment: US$1.8bn
Recent Developments / Announcements
Please visit UMC's website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, October 28, 2015
|
Time: |
5:00 PM (Taipei) / 5:00 AM (New York) / 09:00 AM (London) |
|
|
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| |
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Dial-in numbers and Access Codes: |
|
|
|
USA Toll Free: |
1-800 871-3110, 1-888 700-7397 | |
|
Taiwan Number: |
02-2192-8016 | |
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Other Areas: |
+886-2-2192-8016 | |
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| ||
|
Access Code: |
UMC | |
A live webcast and replay of the 3Q15 results announcement will be available at
www.umc.com under the "Investors / Events" section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced IC production for applications spanning every major sector of the electronics industry. UMC's robust foundry solutions enable chip designers to leverage the company's sophisticated technology and manufacturing, which include volume production 28nm gate-last High-K/Metal Gate technology, ultra-low power platform processes specifically engineered for Internet of Things (IoT) applications and the automotive industry's highest-rated AEC-Q100 Grade-0 manufacturing capabilities for production of ICs found in cars. UMC's 10 wafer fabs are strategically located throughout Asia and are able to produce over 500,000 wafers per month. The company employs more than 17,000 people worldwide, with offices in Taiwan, mainland China, Europe, Japan, Korea, Singapore, and the United States. UMC can be found on the web at http://www.umc.com
Note from UMC Concerning Forward-Looking Statements
Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Forms F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
Safe Harbor Statements
This release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by use of words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts.
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, but not limited to: (i) our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international global business activities; (iv) our dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Form F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
The financial statements included in this release are prepared and published in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from ROC GAAP and US GAAP.
This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
- FINANCIAL TABLES TO FOLLOW -
|
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||||||
|
|
Consolidated Condensed Balance Sheet | ||||||||
|
|
As of September 30, 2015 | ||||||||
|
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||||||
|
|
| ||||||||
|
|
| ||||||||
|
|
|
September 30, 2015 | |||||||
|
|
|
US$ |
|
NT$ |
|
% | |||
|
|
Assets |
|
|
|
|
| |||
|
|
Current assets |
|
|
|
|
| |||
|
|
Cash and cash equivalents |
1,584 |
|
52,143 |
|
15.8% | |||
|
|
Financial assets at fair value through profit or loss, current |
26 |
|
844 |
|
0.3% | |||
|
|
Notes & Accounts receivable, net |
600 |
|
19,755 |
|
6.0% | |||
|
|
Inventories, net |
503 |
|
16,560 |
|
5.0% | |||
|
|
Other current assets |
174 |
|
5,730 |
|
1.8% | |||
|
|
Total current assets |
2,887 |
|
95,032 |
|
28.9% | |||
|
|
|
|
|
|
|
| |||
|
|
Non-current assets |
|
|
|
|
| |||
|
|
Funds and investments |
1,031 |
|
33,952 |
|
10.3% | |||
|
|
Property, plant and equipment |
5,586 |
|
183,891 |
|
55.9% | |||
|
|
Other non-current assets |
496 |
|
16,337 |
|
4.9% | |||
|
|
Total non-current assets |
7,113 |
|
234,180 |
|
71.1% | |||
|
|
Total assets |
10,000 |
|
329,212 |
|
100.0% | |||
|
|
|
|
|
|
|
| |||
|
|
Liabilities |
|
|
|
|
| |||
|
|
Current liabilities |
|
|
|
|
| |||
|
|
Short-term loans |
77 |
|
2,525 |
|
0.8% | |||
|
|
Financial liabilities at fair value through profit or loss, current |
0 |
|
16 |
|
0.0% | |||
|
|
Payables |
1,050 |
|
34,554 |
|
10.4% | |||
|
|
Current portion of long-term liabilities |
192 |
|
6,311 |
|
1.9% | |||
|
|
Other current liabilities |
32 |
|
1,064 |
|
0.4% | |||
|
|
Total current liabilities |
1,351 |
|
44,470 |
|
13.5% | |||
|
|
|
|
|
|
|
| |||
|
|
Non-current liabilities |
|
|
|
|
| |||
|
|
Bonds payable |
1,262 |
|
41,552 |
|
12.6% | |||
|
|
Long-term loans |
189 |
|
6,235 |
|
1.9% | |||
|
|
Other non-current liabilities |
394 |
|
12,957 |
|
4.0% | |||
|
|
Total non-current liabilities |
1,845 |
|
60,744 |
|
18.5% | |||
|
|
Total liabilities |
3,196 |
|
105,214 |
|
32.0% | |||
|
|
|
|
|
|
|
| |||
|
|
Equity |
|
|
|
|
| |||
|
|
Equity attributable to the parent company |
|
|
|
|
| |||
|
|
Capital |
3,874 |
|
127,581 |
|
38.8% | |||
|
|
Additional paid-in capital |
1,269 |
|
41,746 |
|
12.7% | |||
|
|
Retained earnings, unrealized gain or loss on available-for-sale financial assets and exchange differences on translation of foreign operations |
1,717 |
|
56,524 |
|
17.1% | |||
|
|
Treasury stock |
(116) |
|
(3,830) |
|
(1.2%) | |||
|
|
Total equity attributable to the parent company |
6,744 |
|
222,021 |
|
67.4% | |||
|
|
Non-controlling interests |
60 |
|
1,977 |
|
0.6% | |||
|
|
Total equity |
6,804 |
|
223,998 |
|
68.0% | |||
|
|
Total liabilities and equity |
10,000 |
|
329,212 |
|
100.0% | |||
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| |||
|
Note：New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2015 exchange rate of NT $32.92 per U.S. Dollar. | |||||||||
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
|
Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||
|
Except Per Share and Per ADS Data | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year over Year Comparison |
|
Quarter over Quarter Comparison | ||||||||||||||||
|
|
Three-Month Period Ended |
|
|
|
Three-Month Period Ended |
|
| ||||||||||||
|
|
September 30, 2015 |
|
September 30, 2014 |
|
Chg. |
|
September 30, 2015 |
|
June 30, 2015 |
|
Chg. | ||||||||
|
|
US$ |
|
NT$ |
|
US$ |
|
NT$ |
|
% |
|
US$ |
|
NT$ |
|
US$ |
|
NT$ |
|
% |
|
Net operating revenues |
1,073 |
|
35,320 |
|
1,070 |
|
35,214 |
|
0.3% |
|
1,073 |
|
35,320 |
|
1,155 |
|
38,012 |
|
(7.1%) |
|
Operating costs |
(863) |
|
(28,409) |
|
(840) |
|
(27,655) |
|
2.7% |
|
(863) |
|
(28,409) |
|
(890) |
|
(29,289) |
|
(3.0%) |
|
Gross profit |
210 |
|
6,911 |
|
230 |
|
7,559 |
|
(8.6%) |
|
210 |
|
6,911 |
|
265 |
|
8,723 |
|
(20.8%) |
|
|
19.6% |
|
19.6% |
|
21.5% |
|
21.5% |
|
|
|
19.6% |
|
19.6% |
|
22.9% |
|
22.9% |
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Sales and marketing expenses |
(32) |
|
(1,045) |
|
(29) |
|
(957) |
|
9.2% |
|
(32) |
|
(1,045) |
|
(28) |
|
(930) |
|
12.4% |
|
- General and administrative expenses |
(29) |
|
(942) |
|
(26) |
|
(845) |
|
11.5% |
|
(29) |
|
(942) |
|
(28) |
|
(919) |
|
2.5% |
|
- Research and development expenses |
(95) |
|
(3,139) |
|
(105) |
|
(3,468) |
|
(9.5%) |
|
(95) |
|
(3,139) |
|
(92) |
|
(3,015) |
|
4.1% |
|
Subtotal |
(156) |
|
(5,126) |
|
(160) |
|
(5,270) |
|
(2.7%) |
|
(156) |
|
(5,126) |
|
(148) |
|
(4,864) |
|
5.4% |
|
Net other operating income and expenses |
(24) |
|
(804) |
|
(19) |
|
(602) |
|
33.6% |
|
(24) |
|
(804) |
|
1 |
|
17 |
|
- |
|
Operating income |
30 |
|
981 |
|
51 |
|
1,687 |
|
(41.8%) |
|
30 |
|
981 |
|
118 |
|
3,876 |
|
(74.7%) |
|
|
2.8% |
|
2.8% |
|
4.8% |
|
4.8% |
|
|
|
2.8% |
|
2.8% |
|
10.2% |
|
10.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net non-operating income and expenses |
12 |
|
410 |
|
40 |
|
1,305 |
|
(68.6%) |
|
12 |
|
410 |
|
39 |
|
1,304 |
|
(68.6%) |
|
Income from continuing operations before income tax |
42 |
|
1,391 |
|
91 |
|
2,992 |
|
(53.5%) |
|
42 |
|
1,391 |
|
157 |
|
5,180 |
|
(73.1%) |
|
|
3.9% |
|
3.9% |
|
8.5% |
|
8.5% |
|
|
|
3.9% |
|
3.9% |
|
13.6% |
|
13.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
(2) |
|
(84) |
|
(13) |
|
(413) |
|
(79.7%) |
|
(2) |
|
(84) |
|
(19) |
|
(635) |
|
(86.8%) |
|
Net income |
40 |
|
1,307 |
|
78 |
|
2,579 |
|
(49.3%) |
|
40 |
|
1,307 |
|
138 |
|
4,545 |
|
(71.2%) |
|
|
3.7% |
|
3.7% |
|
7.3% |
|
7.3% |
|
|
|
3.7% |
|
3.7% |
|
12.0% |
|
12.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
47 |
|
1,543 |
|
(45) |
|
(1,501) |
|
- |
|
47 |
|
1,543 |
|
(152) |
|
(5,006) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) |
87 |
|
2,850 |
|
33 |
|
1,078 |
|
100% |
|
87 |
|
2,850 |
|
(14) |
|
(461) |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
52 |
|
1,708 |
|
89 |
|
2,916 |
|
(41.4%) |
|
52 |
|
1,708 |
|
140 |
|
4,600 |
|
(62.9%) |
|
Non-controlling interests |
(12) |
|
(401) |
|
(11) |
|
(337) |
|
19.0% |
|
(12) |
|
(401) |
|
(2) |
|
(55) |
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
98 |
|
3,215 |
|
42 |
|
1,372 |
|
100% |
|
98 |
|
3,215 |
|
(11) |
|
(369) |
|
- |
|
Non-controlling interests |
(11) |
|
(365) |
|
(9) |
|
(294) |
|
24.1% |
|
(11) |
|
(365) |
|
(3) |
|
(92) |
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-basic |
0.004 |
|
0.14 |
|
0.007 |
|
0.23 |
|
|
|
0.004 |
|
0.14 |
|
0.011 |
|
0.37 |
|
|
|
Earnings per ADS (2) |
0.021 |
|
0.70 |
|
0.035 |
|
1.15 |
|
|
|
0.021 |
|
0.70 |
|
0.056 |
|
1.85 |
|
|
|
Weighted average number of shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding (in millions) |
|
|
12,525 |
|
|
|
12,501 |
|
|
|
|
|
12,525 |
|
|
|
12,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
|
Notes: | |||||||||||||||||||
|
(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2015 exchange rate of NT $32.92 per U.S. Dollar. | |||||||||||||||||||
|
(2) 1 ADS equals 5 common shares. | |||||||||||||||||||
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||
|
Consolidated Condensed Statements of Comprehensive Income | |||||||||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||
|
Except Per Share and Per ADS Data | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three-Month Period Ended |
|
For the Nine-Month Period Ended | ||||||||
|
|
September 30, 2015 |
|
September 30, 2015 | ||||||||
|
|
US$ |
|
NT$ |
|
% |
|
US$ |
|
NT$ |
|
% |
|
Net operating revenues |
1,073 |
|
35,320 |
|
100.0% |
|
3,371 |
|
110,981 |
|
100.0% |
|
Operating costs |
(863) |
|
(28,409) |
|
(80.4%) |
|
(2,618) |
|
(86,192) |
|
(77.7%) |
|
Gross profit |
210 |
|
6,911 |
|
19.6% |
|
753 |
|
24,789 |
|
22.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
- Sales and marketing expenses |
(32) |
|
(1,045) |
|
(2.9%) |
|
(92) |
|
(3,020) |
|
(2.7%) |
|
- General and administrative expenses |
(29) |
|
(942) |
|
(2.7%) |
|
(85) |
|
(2,814) |
|
(2.5%) |
|
- Research and development expenses |
(95) |
|
(3,139) |
|
(8.9%) |
|
(276) |
|
(9,070) |
|
(8.2%) |
|
Subtotal |
(156) |
|
(5,126) |
|
(14.5%) |
|
(453) |
|
(14,904) |
|
(13.4%) |
|
Net other operating income and expenses |
(24) |
|
(804) |
|
(2.3%) |
|
(28) |
|
(929) |
|
(0.8%) |
|
Operating income |
30 |
|
981 |
|
2.8% |
|
272 |
|
8,956 |
|
8.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net non-operating income and expenses |
12 |
|
410 |
|
1.1% |
|
60 |
|
1,970 |
|
1.7% |
|
Income from continuing operations before
|
42 |
|
1,391 |
|
3.9% |
|
332 |
|
10,926 |
|
9.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
(2) |
|
(84) |
|
(0.2%) |
|
(35) |
|
(1,161) |
|
(1.0%) |
|
Net income |
40 |
|
1,307 |
|
3.7% |
|
297 |
|
9,765 |
|
8.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive Income (loss) |
47 |
|
1,543 |
|
4.4% |
|
(109) |
|
(3,571) |
|
(3.2%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income (loss) |
87 |
|
2,850 |
|
8.1% |
|
188 |
|
6,194 |
|
5.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
52 |
|
1,708 |
|
4.8% |
|
313 |
|
10,289 |
|
9.3% |
|
Non-controlling interests |
(12) |
|
(401) |
|
(1.1%) |
|
(16) |
|
(524) |
|
(0.5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the parent |
98 |
|
3,215 |
|
9.1% |
|
205 |
|
6,756 |
|
6.1% |
|
Non-controlling interests |
(11) |
|
(365) |
|
(1.0%) |
|
(17) |
|
(562) |
|
(0.5%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-basic |
0.004 |
|
0.14 |
|
|
|
0.025 |
|
0.82 |
|
|
|
Earnings per ADS (2) |
0.021 |
|
0.70 |
|
|
|
0.125 |
|
4.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
|
|
|
12,525 |
|
|
|
|
|
12,541 |
|
|
|
| |||||||||||
|
Notes: | |||||||||||
|
(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2015 exchange rate of NT $32.92 per U.S. Dollar. | |||||||||||
|
(2) 1 ADS equals 5 common shares. | |||||||||||
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||
|
Consolidated Condensed Statement of Cash Flows | ||||
|
For The Nine-Month Period Ended September 30, 2015 | ||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||
|
|
|
|
|
|
|
|
USD |
|
NTD |
|
|
Cash flows from operating activities : |
|
|
|
|
|
Net income before tax |
332 |
|
10,926 |
|
|
Depreciation & Amortization |
1,019 |
|
33,534 |
|
|
Impairment loss on financial assets |
37 |
|
1,223 |
|
|
Impairment loss on non-financial assets |
31 |
|
1,021 |
|
|
Gain on disposal of investments |
(64) |
|
(2,120) |
|
|
Changes in notes & accounts receivable |
92 |
|
3,031 |
|
|
Changes in assets, liabilities and others |
(24) |
|
(756) |
|
|
Income tax paid |
(68) |
|
(2,245) |
|
|
Net cash provided by operating activities |
1,355 |
|
44,614 |
|
|
|
|
|
|
|
|
Cash flows from investing activities : |
|
|
|
|
|
Acquisition of available-for-sale financial assets |
(85) |
|
(2,797) |
|
|
Proceeds from disposal of available-for-sale financial assets |
42 |
|
1,373 |
|
|
Acquisition of subsidiaries (net of cash acquired) |
13 |
|
415 |
|
|
Disposal of subsidiaries |
(25) |
|
(835) |
|
|
Acquisition of property, plant and equipment |
(1,432) |
|
(47,154) |
|
|
Proceeds from disposal of non-current assets held for sale |
20 |
|
642 |
|
|
Acquisition of intangible assets |
(28) |
|
(923) |
|
|
Increase in refundable deposits |
(41) |
|
(1,344) |
|
|
Increase in other noncurrent assets-others |
(35) |
|
(1,160) |
|
|
Others |
1 |
|
112 |
|
|
Net cash used in investing activities |
(1,570) |
|
(51,671) |
|
|
|
|
|
|
|
|
Cash flows from financing activities : |
|
|
|
|
|
Decrease in short-term loans |
(87) |
|
(2,878) |
|
|
Proceeds from bonds issued |
560 |
|
18,425 |
|
|
Proceeds from long-term loans |
116 |
|
3,834 |
|
|
Repayments of long-term loans |
(126) |
|
(4,162) |
|
|
Cash dividends |
(211) |
|
(6,939) |
|
|
Exercise of employee stock options |
9 |
|
289 |
|
|
Treasury stockacquired |
(67) |
|
(2,203) |
|
|
Treasury stock sold to employees |
21 |
|
677 |
|
|
Increase in other financial liabilities |
186 |
|
6,108 |
|
|
Others |
(32) |
|
(995) |
|
|
Net cash provided by financing activities |
369 |
|
12,156 |
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
26 |
|
832 |
|
|
Net increase in cash and cash equivalents |
180 |
|
5,931 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
1,404 |
|
46,212 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
1,584 |
|
52,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2015 exchange rate of NT $32.92 per U.S. Dollar. | ||||
[1]Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending Sep 30, 2015, the three-month period ending Jun 30, 2015, and the equivalent three-month period that ended Sep 30, 2014. For all 3Q15 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Sep 30, 2015 exchange rate of NT$ 32.92 per U.S. Dollar.
[2] Revenue in this section represents wafer sales
[3] Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
[4] 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.
Contacts:
Bowen Huang / David Wong
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16900
Email Contact
Email Contact
To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/umc-reports-third-quarter-2015-results-300167723.html
SOURCE United Microelectronics Corporation
| Contact: |
| United Microelectronics Corporation
Web: http://www.umc.com |