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UMC Reports Third Quarter 2015 Results

Inventory correction dampening 4Q15 demand; cyclical bottom approaching

(PRNewswire) —

Third Quarter 2015 Overview[1]:

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 %
change

3Q14

YoY %
change

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 %
change

3Q14

YoY %
change

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
(8" K equivalents)

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
(8" K equivalents)

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
(um)

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:

Recent Developments / Announcements

Oct. 8, 2015

UMC Ranked Second in 2015 Channel NewsAsia Sustainability Ranking, First in Taiwan

Sep. 22, 2015

UMC Enters Volume Touch IC Production Using Foundry Industry's First 0.11um eFlash Process

Sep. 11, 2015

UMC Selected as a DJSI Global Component for Eighth Consecutive Year

Aug. 19, 2015

UMC Receives Sixth Corporate Citizenship Award from Taiwan's CommonWealth Magazine

Jul. 29, 2015

UMC 2Q 2015 Financial Results

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)




Dial-in numbers and Access Codes:



USA Toll Free:

1-800 871-3110, 1-888 700-7397

Taiwan Number:

02-2192-8016

Other Areas:

+886-2-2192-8016


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 
income tax                                                               

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
     outstanding (in millions)



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