2015 full year foundry revenue up 9%; EPS up 11% YoY to NT$1.08
(PRNewswire) —Jan 27, 2016
Fourth Quarter 2015 Overview[1]:
- Revenue: NT$33.85 billion (US$1.03 billion)
- Gross margin: 20.6%; operating margin: 5.6%
- Foundry revenue from advanced nodes: 11% from 28nm, 24% from 40nm
- Foundry capacity utilization rate: 83%
- Net income attributable to stockholders of the parent: NT$3.16 billion (US$96 million)
- Earnings per share: NT$0.25; earnings per ADS: US$0.038
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the fourth quarter of 2015.
Fourth quarter consolidated revenue was NT$33.85 billion, a 4.2% decrease from NT$35.32 billion in 3Q15 and a YoY decline of 9.1% from NT$37.24 billion in 4Q14. 4Q15 consolidated gross margin was 20.6%, with operating margin at 5.6%. Net income attributable to stockholders of the parent was NT$3.16 billion, with earnings per ordinary share of NT$0.25. For 2015, full year revenue was NT$144.83 billion, with NT$10.84 billion in operating income, NT$13.45 billion net income attributable to stockholders of parent and NT$1.08 earnings per share.
Po-Wen Yen, CEO of UMC, said "In the fourth quarter of 2015, UMC's foundry revenue declined 4.2% sequentially to NT$33.59 billion, due to continued inventory correction within the semiconductor industry. Wafer shipments reached 1.38 million 8-inch equivalent wafers, bringing overall capacity utilization rate to 83%. Our 28nm technology constituted 11% of 4Q15 revenue. For full year 2015, our foundry revenue grew 9% over 2014, aided by a 5% increase in total manufacturing capacity, higher blended ASP due to increased advanced node contribution and overall loading of approximately 90%. Our 28nm business tripled in 2015, propelled by strong demand from the communication sector. Furthermore, we have introduced a refined 28nm High-K Metal Gate (HKMG) process variation for communication ICs called 28HPCU, which operates at the same speed range as 28nm HKMG, but with lower standby current to considerably extend battery life. UMC will continue to strengthen our 28nm technology roadmap with enhanced processes that raise chip performance while lowering power consumption. Besides 28nm technologies, we have also observed stronger demand for chips used in the automotive industry, on both 8" and 12" manufacturing processes. UMC customers are now migrating from consumer grade products to more stringent grade 1 and grade 0 semiconductors designed for critical automotive safety functions. These products include power management, display driver, imaging sensors, and microcontrollers. As more products begin to rely on UMC's comprehensive 'Automotive Service Package', our exposure in the automotive supply chain will help generate a new revenue stream for our foundry business."
CEO Yen continued, "We are seeing signs of cyclical bottoming as most of our customers' inventory has returned to reasonable levels. For the first quarter of 2016, we expect our foundry revenue to remain flat. UMC is optimistic on the growth outlook for the foundry industry, led by communication and consumer products. We anticipate positive momentum for our 28nm as new products scheduled to enter production throughout the year provide additional business traction. To meet increased demand, we plan to expand our 12" operations with Tainan Fab 12A phase 5 coming online and Xiamen Fab 12X currently under construction. UMC has budgeted 2016 CAPEX at approximately US$2.2 billion, which will mainly focus on adding 300mm capacity. As a key upstream supplier, we look forward to expanding our involvement in exciting new applications, which will enable UMC to sustain our momentum across the industry."
Summary of Operating Results
|
Operating Results |
|||||
|
(Amount: NT$ million) |
4Q15 |
3Q15 |
QoQ %
|
4Q14 |
YoY %
|
|
Net Operating Revenues |
33,849 |
35,320 |
(4.2) |
37,235 |
(9.1) |
|
Gross Profit |
6,979 |
6,911 |
1.0 |
10,186 |
(31.5) |
|
Operating Expenses |
(5,065) |
(5,126) |
(1.2) |
(5,672) |
(10.7) |
|
Net Other Operating Income and Expenses |
(34) |
(804) |
(95.8) |
18 |
- |
|
Operating Income |
1,880 |
981 |
91.6 |
4,532 |
(58.5) |
|
Net Non-Operating Income and Expenses |
906 |
410 |
121.0 |
843 |
7.5 |
|
Net Income Attributable to Stockholders of the Parent |
3,160 |
1,708 |
85.0 |
4,563 |
(30.7) |
|
EPS (NT$ per share) |
0.25 |
0.14 |
0.36 |
||
|
(US$ per ADS) |
0.038 |
0.021 |
0.055 |
||
Consolidated revenues in 4Q15 declined 4.2% sequentially to NT$33.85 billion, including NT$33.59 billion from the foundry segment. Gross profit during the quarter grew 1% QoQ to NT$6.98 billion, or 20.6% of revenue. Operating expenses went down 1.2% to NT$5.07 billion. Net other operating expenses decreased 95.8% QoQ to NT$34 million leading to an operating income of NT$1.88 billion, or 5.6% of revenue, up 91.6% from 3Q15. Net non-operating income increased 121% QoQ to NT$0.91 billion compared to NT$0.41 billion in 3Q15. Net income attributable to stockholders of the parent in 4Q15 was NT$3.16 billion, up 85.0% from NT$1.71 billion in 3Q15.
Earnings per ordinary share for the quarter was NT$0.25. Earnings per ADS was US$0.038. The basic weighted average number of outstanding shares in 4Q15 was 12,407,897,412, compared with 12,524,504,594 shares in 3Q15 and 12,509,658,059 shares in 4Q14. The diluted weighted average number of outstanding shares was 13,601,975,910 in 4Q15, compared with 13,694,010,855 shares in 3Q15 and 12,620,712,149 shares in 4Q14. The fully diluted share count on December 31, 2015 was approximately 13,858,726,000. On December 31, 2015, UMC held 334 million treasury shares acquired from the 15th and 16th share buy-back programs.
Detailed Financials Section
|
COGS & Expenses |
|||||
|
(Amount: NT$ million) |
4Q15 |
3Q15 |
QoQ %
|
4Q14 |
YoY %
|
|
Net Operating Revenues |
33,849 |
35,320 |
(4.2) |
37,235 |
(9.1) |
|
COGS |
(26,870) |
(28,409) |
(5.4) |
(27,049) |
(0.7) |
|
Depreciation |
(9,700) |
(9,654) |
0.5 |
(8,495) |
14.2 |
|
Other Mfg. Costs |
(17,170) |
(18,755) |
(8.5) |
(18,554) |
(7.5) |
|
Gross Profit |
6,979 |
6,911 |
1.0 |
10,186 |
(31.5) |
|
Gross Margin (%) |
20.6% |
19.6% |
27.4% |
||
|
Operating Expenses |
(5,065) |
(5,126) |
(1.2) |
(5,672) |
(10.7) |
|
G&A |
(916) |
(942) |
(2.8) |
(1,013) |
(9.6) |
|
Sales & Marketing |
(1,044) |
(1,045) |
(0.1) |
(1,124) |
(7.1) |
|
R&D |
(3,105) |
(3,139) |
(1.1) |
(3,535) |
(12.2) |
|
Net Other Operating Income & Expenses |
(34) |
(804) |
(95.8) |
18 |
- |
|
Operating Income |
1,880 |
981 |
91.6 |
4,532 |
(58.5) |
Foundry revenue decreased 4.2% in 4Q15 to NT$33.59 billion, reflecting the IC industry inventory adjustment. Cost of goods sold was NT$26.87 billion, a decline of 5.4% QoQ, which resulted from a 8.5% decrease in other manufacturing costs due to softened demand. 4Q15 gross profit increased 1.0% to NT$6.98 billion, partly due to favorable foreign exchange rates. Operating expenses slightly decreased to NT$5.07 billion. R&D expenses represented 9.1% of operating revenues. Net other operating expenses fell to NT$34 million, resulting in operating income of NT$1.88 billion, up 91.6% from 3Q15.
|
Non-Operating Income and Expenses |
|||
|
(Amount: NT$ million) |
4Q15 |
3Q15 |
4Q14 |
|
Non-Operating Income and Expenses |
906 |
410 |
843 |
|
Net Interest Income and Expenses |
(19) |
(23) |
(12) |
|
Net Investment Gain and Loss |
230 |
(396) |
(37) |
|
Gain and Loss on Disposal of Investment |
376 |
612 |
639 |
|
Exchange Gain and Loss |
(35) |
471 |
201 |
|
Other Gain and Loss |
354 |
(254) |
52 |
Net non-operating income in 4Q15 was NT$906 million, including a NT$376 million gain on disposal of investment, NT$354 million in other gains and a NT$230 million gain from net investment.
|
Cash Flow Summary |
||
|
(Amount: NT$ million) |
For the 3-Month Period Ended Dec. 31, 2015 |
For the 3-Month Period Ended Sep. 30, 2015 |
|
Cash Flow from Operating Activities |
15,428 |
16,286 |
|
Net Income before tax |
2,786 |
1,391 |
|
Depreciation & Amortization |
11,938 |
11,592 |
|
Net loss (gain) of financial assets at FVTPL |
(61) |
321 |
|
Share of profit or loss of associates and joint ventures |
(195) |
159 |
|
Gain on disposal of investments |
(376) |
(612) |
|
Impairment loss on financial assets |
22 |
744 |
|
Impairment loss on non-financial assets |
- |
795 |
|
Changes in working capital |
1,340 |
2,241 |
|
Income tax paid |
(98) |
(574) |
|
Other |
72 |
229 |
|
Cash Flow from Investing Activities |
(17,065) |
(20,416) |
|
Capital expenditures |
(13,350) |
(20,227) |
|
Acquisition of available-for-sale financial assets |
(2,004) |
(235) |
|
Proceeds from disposal of available-for-sale financial assets |
591 |
645 |
|
Acquisition of investments accounted for under the equity method |
(2,364) |
(51) |
|
Proceeds from capital reduction and liquidation of investments |
256 |
294 |
|
Changes in other noncurrent assets |
73 |
(589) |
|
Other |
(267) |
(253) |
|
Cash Flow from Financing Activities |
2,893 |
(9,822) |
|
Bank loans |
2,886 |
330 |
|
Treasury stock acquired |
- |
(2,203) |
|
Acquisition of subsidiaries |
3 |
(935) |
|
Cash dividends |
- |
(6,939) |
|
Other |
4 |
(75) |
|
Effect of Exchange Rate |
(109) |
2,049 |
|
Net Cash Flow |
1,147 |
(11,903) |
Cash inflow from operating activities reached NT$15.43 billion. Cash outflow from investing activities totaled NT$17.07 billion, including NT$13.34 billion CAPEX spending for the foundry segment. Acquisition of available for sale financial assets totaled NT$2.00 billion, including NT$1.35 billion to acquire an increasing stake of Mie Fujitsu Semiconductor Limited through its new share issuance. Cash inflow from financing activities was NT$2.89 billion, mainly due to bank loans. Net cash inflow for 4Q15 was NT$1.15 billion. Over the next 12 months, the company expects to repay NT$6.60 billion in bank loans.
|
Current Assets |
|||
|
(Amount: NT$ billion) |
4Q15 |
3Q15 |
4Q14 |
|
Cash and Cash Equivalents |
53.29 |
52.14 |
45.70 |
|
Notes & Accounts Receivable |
19.33 |
19.76 |
22.37 |
|
Days Sales Outstanding |
53 |
53 |
54 |
|
Inventories, net |
17.64 |
16.56 |
15.24 |
|
Days of Inventory |
58 |
52 |
50 |
|
Total Current Assets |
94.82 |
95.03 |
96.86 |
Cash and cash equivalents increased to NT$53.29 billion, mainly due to bank loans. The days of inventory increased 6 days to 58 days, mainly due to an increase in WIP for 1Q16 wafer shipments.
|
Liabilities |
|||
|
(Amount: NT$ billion) |
4Q15 |
3Q15 |
4Q14 |
|
Total Current Liabilities |
48.25 |
44.47 |
48.11 |
|
Notes & Accounts Payable |
5.95 |
6.34 |
6.17 |
|
Short-Term Credit / Bonds |
12.11 |
8.84 |
10.03 |
|
Payable on Equipment |
14.66 |
14.08 |
10.48 |
|
Liabilities directly associated with non-current assets held for sale |
- |
- |
5.59 |
|
Other |
15.53 |
15.21 |
15.84 |
|
Long-Term Credit / Bonds |
47.52 |
47.79 |
33.40 |
|
Long-Term Investment Liabilities |
6.06 |
6.24 |
- |
|
Total Liabilities |
108.55 |
105.21 |
88.24 |
|
Debt to Equity |
47% |
47% |
39% |
Current liabilities increased to NT$48.25 billion, primarily from a NT$3.27 billion increase in short-term credit/bonds, leading to total liabilities of NT$108.55 billion. Debt to equity ratio remained at 47%.
Analysis of Revenue[2] for Foundry Segment
|
Revenue Breakdown by Region |
|||||
|
Region |
4Q15 |
3Q15 |
2Q15 |
1Q15 |
4Q14 |
|
North America |
47% |
45% |
46% |
47% |
45% |
|
Asia Pacific |
37% |
41% |
42% |
40% |
42% |
|
Europe |
6% |
6% |
6% |
7% |
8% |
|
Japan |
10% |
8% |
6% |
6% |
5% |
Revenue contribution from Asia Pacific decreased to 37% in 4Q15, partly from a decline in Asian Pacific customers' demand for communication products.
|
Revenue Breakdown by Geometry |
|||||
|
Geometry |
4Q15 |
3Q15 |
2Q15 |
1Q15 |
4Q14 |
|
28nm and below |
11% |
10% |
11% |
9% |
7% |
|
28nm<x<=40nm |
24% |
25% |
22% |
24% |
21% |
|
40nm<x<=65nm |
23% |
21% |
21% |
23% |
24% |
|
65nm<x<=90nm |
4% |
4% |
6% |
5% |
7% |
|
90nm<x<=0.13um |
12% |
14% |
14% |
13% |
14% |
|
0.13um<x<=0.18um |
11% |
11% |
12% |
12% |
12% |
|
0.18um<x<=0.35um |
12% |
12% |
11% |
11% |
12% |
|
0.5um and above |
3% |
3% |
3% |
3% |
3% |
28nm revenue represented 11% of 4Q15 sales, while 40nm revenue accounted for 24%. 65nm contribution increased to 23%, up from 21% in 3Q15.
|
Revenue Breakdown by Customer Type |
|||||
|
Customer Type |
4Q15 |
3Q15 |
2Q15 |
1Q15 |
4Q14 |
|
Fabless |
85% |
88% |
89% |
90% |
90% |
|
IDM |
15% |
12% |
11% |
10% |
10% |
4Q15 revenue from IDM customers increased to 15% of sales.
|
Revenue Breakdown by Application (1) |
|||||
|
Application |
4Q15 |
3Q15 |
2Q15 |
1Q15 |
4Q14 |
|
Computer |
11% |
11% |
12% |
13% |
14% |
|
Communication |
52% |
55% |
55% |
56% |
54% |
|
Consumer |
29% |
27% |
28% |
26% |
28% |
|
Others |
8% |
7% |
5% |
5% |
4% |
Revenue from communication segment declined to 52% of 4Q15 sales, partly due to a softer demand in the handset supply chain.
(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) slightly decreased in 4Q15.
(To view ASP trend, visit http://www.umc.com/english/investors/4Q15_ASP_trend.asp)
Shipment and Utilization Rate[3] for Foundry Segment
|
Wafer Shipments |
|||||
|
4Q15 |
3Q15 |
2Q15 |
1Q15 |
4Q14 |
|
|
Wafer Shipments
|
1,384 |
1,467 |
1,536 |
1,481 |
1,431 |
|
Quarterly Capacity Utilization Rate |
|||||
|
4Q15 |
3Q15 |
2Q15 |
1Q15 |
4Q14 |
|
|
Utilization Rate |
83% |
89% |
94% |
93% |
93% |
|
Total Capacity
|
1,690 |
1,685 |
1,659 |
1,583 |
1,577 |
Wafer shipments declined 5.6% to 1,384K in 4Q15. Quarterly capacity increased to 1,690K, resulting in an overall utilization rate of 83% for the quarter.
Capacity[4] for Foundry Segment
Overall capacity during the fourth quarter increased to 1,690K 8-inch equivalent wafers, due to the continuous expansion at Fab 8N. First quarter's estimated capacity will be approximately 1,692K 8-inch equivalent wafers from capacity deployment at Fab 8N and Fab 8A, along with the recognition of WTK's GaAs quarterly capacity.
|
Annual Capacity in thousands of wafers |
Quarterly Capacity in thousands of wafers |
|||||||||||
|
FAB |
Geometry
|
2015 |
2014 |
2013 |
2012 |
FAB |
1Q16E |
4Q15 |
3Q15 |
2Q15 |
||
|
WTK |
6" |
3.5 - 0.45 |
311 |
- |
- |
- |
WTK |
105 |
99 |
99 |
113 |
|
|
Fab 6A |
6" |
3.5 - 0.45 |
111 |
448 |
448 |
481 |
Fab 8A |
206 |
204 |
204 |
204 |
|
|
Fab 8A |
8" |
0.5 - 0.25 |
813 |
813 |
813 |
815 |
Fab 8C |
87 |
87 |
87 |
87 |
|
|
Fab 8C |
8" |
0.35 - 0.11 |
347 |
347 |
347 |
360 |
Fab 8D |
85 |
86 |
86 |
86 |
|
|
Fab 8D |
8" |
0.13 - 0.09 |
341 |
358 |
382 |
371 |
Fab 8E |
104 |
105 |
105 |
105 |
|
|
Fab 8E |
8" |
0.5 - 0.18 |
418 |
418 |
418 |
449 |
Fab 8F |
97 |
98 |
98 |
98 |
|
|
Fab 8F |
8" |
0.18 - 0.11 |
388 |
388 |
388 |
389 |
Fab 8S |
84 |
84 |
84 |
84 |
|
|
Fab 8S |
8" |
0.18 - 0.11 |
335 |
335 |
335 |
348 |
Fab 8N |
187 |
183 |
178 |
162 |
|
|
Fab 8N |
8" |
0.5 - 0.13 |
667 |
547 |
469 |
- |
Fab 12A |
205 |
206 |
206 |
198 |
|
|
Fab 12A |
12" |
0.18 - 0.028 |
793 |
700 |
651 |
579 |
Fab 12i |
144 |
144 |
144 |
144 |
|
|
Fab 12i |
12" |
0.13 - 0.040 |
572 |
573 |
550 |
537 |
Total |
1,692 |
1,690 |
1,685 |
1,659 |
|
|
Total(1) |
6,617 |
6,323 |
6,107 |
5,514 |
||||||||
| 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.
CAPEX for Foundry Segment
|
Capital Expenditure by Year - in US$ billion |
|||||
|
Year |
2015 |
2014 |
2013 |
2012 |
2011 |
|
CAPEX |
$ 1.9 |
$ 1.4 |
$ 1.1 |
$ 1.7 |
$ 1.6 |
|
2011~2012 figures account for UMC parent company only |
|||||
|
2016 CAPEX Plan |
||
|
8" |
12" |
Total |
|
5% |
95% |
US$2.2 billion |
4Q15 CAPEX spending was US$410 million. Full year 2015 CAPEX totaled US$1.9 billion including US$190 million for Fab 12X. Foundry capital expenditure budget for 2016 is expected to be approximately US$2.2 billion, mainly for capacity deployment in 300mm facilities.
Brief Summary of Full Year 2015 Consolidated Results
|
Operating Results |
|||
|
(Amount: NT$ million) |
2015 |
2014 |
YoY %
|
|
Net Operating Revenues |
144,830 |
140,012 |
3.4 |
|
Gross Profit |
31,769 |
31,853 |
(0.3) |
|
Operating Expenses |
(19,969) |
(21,238) |
(6.0) |
|
Net Other Operating Income & Expenses |
(964) |
(539) |
78.8 |
|
Operating Income |
10,836 |
10,076 |
7.5 |
|
Net Non-Operating Income & Expenses |
2,876 |
3,437 |
(16.3) |
|
Income Tax Expense |
(876) |
(2,033) |
(56.9) |
|
Net Income Attributable to Stockholders of the Parent |
13,449 |
12,141 |
10.8 |
|
EPS (NT$ per share) |
1.08 |
0.97 |
|
|
(US$ per ADS) |
0.165 |
0.148 |
|
- Consolidated revenue increased 3.40% YoY to NT$144.83 billion, up from NT$140.01 billion in 2014. Foundry segment revenue in 2015 increased 9.0% YoY to NT$141.19 billion, up from NT$129.53 billion in 2014.
- Gross margin was 21.9%, compared to 22.8% in 2014.
- Operating margin was 7.5%, compared to 7.2% in 2014.
- Net income attributable to stockholders of the parent was NT$13.45 billion for 2015.
- EPS was NT$1.08, or EPADS was US$0.165 for 2015.
- The overall percentage of revenue from 28nm was 10% in 2015, while revenue from 40nm increased to 24%.
Annual Sales Breakdown in Revenue for Foundry Segment
|
Region |
2015 |
2014 |
|
North America |
46% |
45% |
|
Asia Pacific |
40% |
44% |
|
Europe |
7% |
6% |
|
Japan |
7% |
5% |
|
Technology |
2015 |
2014 |
|
28nm and below |
10% |
3% |
|
28nm<x<=40nm |
24% |
21% |
|
40nm<x<=65nm |
22% |
28% |
|
65nm<x<=90nm |
5% |
7% |
|
90nm<x<=0.13um |
13% |
14% |
|
0.13um<x<=0.18um |
11% |
13% |
|
0.18um<x<=0.35um |
12% |
11% |
|
0.5um and above |
3% |
3% |
|
Customer Type |
2015 |
2014 |
|
Fabless |
88% |
91% |
|
IDM |
12% |
9% |
|
Application |
2015 |
2014 |
|
Computer |
12% |
16% |
|
Communication |
54% |
51% |
|
Consumer |
28% |
29% |
|
Others |
6% |
4% |
First Quarter of 2016 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To remain flat
- ASP in US$: ASP softness offset by favorable USD to NTD exchange rate
- Profitability: Gross profit margin will be in high teens % range
- Foundry Segment Capacity Utilization: Approximately low 80% range
- 2016 CAPEX for Foundry Segment: US$2.2bn
Recent Developments / Announcements
|
Nov 17, 2015 |
UMC's Automotive Semi Revenue Doubles YoY on Strong Customer Adoption |
|
|
Nov 13, 2015 |
||
|
Oct 28, 2015 |
||
Please visit UMC's website for further details regarding the above announcements
Conference Call / Webcast Announcement
|
Wednesday, January 27, 2016 |
|
|
Time: |
5:00 PM (Taipei) / 4:00 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 4Q15 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 -
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UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
||||||||
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Consolidated Condensed Balance Sheet |
||||||||
|
As of December 31, 2015 |
||||||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
||||||||
|
December 31, 2015 |
||||||||
|
US$ |
NT$ |
% |
||||||
|
Assets |
||||||||
|
Current assets |
||||||||
|
Cash and cash equivalents |
1,624 |
53,290 |
15.8% |
|||||
|
Financial assets at fair value through profit or loss, current |
20 |
665 |
0.2% |
|||||
|
Notes & Accounts receivable, net |
589 |
19,332 |
5.7% |
|||||
|
Inventories, net |
538 |
17,641 |
5.2% |
|||||
|
Other current assets |
119 |
3,889 |
1.2% |
|||||
|
Total current assets |
2,890 |
94,817 |
28.1% |
|||||
|
Non-current assets |
||||||||
|
Funds and investments |
1,224 |
40,151 |
11.9% |
|||||
|
Property, plant and equipment |
5,682 |
186,433 |
55.3% |
|||||
|
Other non-current assets |
486 |
15,966 |
4.7% |
|||||
|
Total non-current assets |
7,392 |
242,550 |
71.9% |
|||||
|
Total assets |
10,282 |
337,367 |
100.0% |
|||||
|
Liabilities |
||||||||
|
Current liabilities |
||||||||
|
Short-term loans |
168 |
5,505 |
1.6% |
|||||
|
Financial liabilities at fair value through profit or loss, current |
0 |
1 |
0.0% |
|||||
|
Payables |
1,071 |
35,131 |
10.4% |
|||||
|
Current portion of long-term liabilities |
201 |
6,602 |
2.0% |
|||||
|
Other current liabilities |
30 |
1,007 |
0.3% |
|||||
|
Total current liabilities |
1,470 |
48,246 |
14.3% |
|||||
|
Non-current liabilities |
||||||||
|
Bonds payable |
1,269 |
41,637 |
12.3% |
|||||
|
Long-term loans |
179 |
5,888 |
1.7% |
|||||
|
Other non-current liabilities |
390 |
12,779 |
3.9% |
|||||
|
Total non-current liabilities |
1,838 |
60,304 |
17.9% |
|||||
|
Total liabilities |
3,308 |
108,550 |
32.2% |
|||||
|
Equity |
||||||||
|
Equity attributable to the parent company |
||||||||
|
Capital |
3,888 |
127,581 |
37.8% |
|||||
|
Additional paid-in capital |
1,269 |
41,652 |
12.3% |
|||||
|
Retained earnings, unrealized gain or loss on available-for-sale
|
1,872 |
61,383 |
18.2% |
|||||
|
Treasury stock |
(117) |
(3,826) |
(1.1%) |
|||||
|
Total equity attributable to the parent company |
6,912 |
226,790 |
67.2% |
|||||
|
Non-controlling interests |
62 |
2,027 |
0.6% |
|||||
|
Total equity |
6,974 |
228,817 |
67.8% |
|||||
|
Total liabilities and equity |
10,282 |
337,367 |
100.0% |
|||||
|
Note：New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2015 exchange rate of NT $32.81 per U.S. Dollar. |
||||||||
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||
|
Consolidated Condensed Statements of Comprehensive Income |
|||||||||||||||||||
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Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
|||||||||||||||||||
|
Except Per Share and Per ADS Data |
|||||||||||||||||||
|
Year over Year Comparison |
Quarter over Quarter Comparison |
||||||||||||||||||
|
Three-Month Period Ended |
Three-Month Period Ended |
||||||||||||||||||
|
December 31, 2015 |
December 31, 2014 |
Chg. |
December 31, 2015 |
September 30, 2015 |
Chg. |
||||||||||||||
|
US$ |
NT$ |
US$ |
NT$ |
% |
US$ |
NT$ |
US$ |
NT$ |
% |
||||||||||
|
Net operating revenues |
1,032 |
33,849 |
1,135 |
37,235 |
(9.1%) |
1,032 |
33,849 |
1,077 |
35,320 |
(4.2%) |
|||||||||
|
Operating costs |
(819) |
(26,870) |
(825) |
(27,049) |
(0.7%) |
(819) |
(26,870) |
(866) |
(28,409) |
(5.4%) |
|||||||||
|
Gross profit |
213 |
6,979 |
310 |
10,186 |
(31.5%) |
213 |
6,979 |
211 |
6,911 |
1.0% |
|||||||||
|
20.6% |
20.6% |
27.4% |
27.4% |
20.6% |
20.6% |
19.6% |
19.6% |
||||||||||||
|
Operating expenses |
|||||||||||||||||||
|
- Sales and marketing expenses |
(32) |
(1,044) |
(34) |
(1,124) |
(7.1%) |
(32) |
(1,044) |
(32) |
(1,045) |
(0.1%) |
|||||||||
|
- General and administrative expenses |
(28) |
(916) |
(31) |
(1,013) |
(9.6%) |
(28) |
(916) |
(29) |
(942) |
(2.8%) |
|||||||||
|
- Research and development expenses |
(95) |
(3,105) |
(108) |
(3,535) |
(12.2%) |
(95) |
(3,105) |
(95) |
(3,139) |
(1.1%) |
|||||||||
|
Subtotal |
(155) |
(5,065) |
(173) |
(5,672) |
(10.7%) |
(155) |
(5,065) |
(156) |
(5,126) |
(1.2%) |
|||||||||
|
Net other operating income and expenses |
(1) |
(34) |
1 |
18 |
- |
(1) |
(34) |
(25) |
(804) |
(95.8%) |
|||||||||
|
Operating income |
57 |
1,880 |
138 |
4,532 |
(58.5%) |
57 |
1,880 |
30 |
981 |
91.6% |
|||||||||
|
5.6% |
5.6% |
12.2% |
12.2% |
5.6% |
5.6% |
2.8% |
2.8% |
||||||||||||
|
Net non-operating income and expenses |
28 |
906 |
26 |
843 |
7.5% |
28 |
906 |
12 |
410 |
100.0% |
|||||||||
|
Income from continuing operations before
|
85 |
2,786 |
164 |
5,375 |
(48.2%) |
85 |
2,786 |
42 |
1,391 |
100.0% |
|||||||||
|
8.2% |
8.2% |
14.4% |
14.4% |
8.2% |
8.2% |
3.9% |
3.9% |
||||||||||||
|
Income tax benefit(expense) |
9 |
285 |
(28) |
(911) |
- |
9 |
285 |
(2) |
(84) |
- |
|||||||||
|
Net income |
94 |
3,071 |
136 |
4,464 |
(31.2%) |
94 |
3,071 |
40 |
1,307 |
100.0% |
|||||||||
|
9.1% |
9.1% |
12.0% |
12.0% |
9.1% |
9.1% |
3.7% |
3.7% |
||||||||||||
|
Other comprehensive income (loss) |
54 |
1,776 |
122 |
4,006 |
(55.7%) |
54 |
1,776 |
47 |
1,543 |
15.1% |
|||||||||
|
Total comprehensive income (loss) |
148 |
4,847 |
258 |
8,470 |
(42.8%) |
148 |
4,847 |
87 |
2,850 |
70.1% |
|||||||||
|
Net income attributable to: |
|||||||||||||||||||
|
Stockholders of the parent |
96 |
3,160 |
139 |
4,563 |
(30.7%) |
96 |
3,160 |
52 |
1,708 |
85.0% |
|||||||||
|
Non-controlling interests |
(2) |
(89) |
(3) |
(99) |
(10.1%) |
(2) |
(89) |
(12) |
(401) |
(77.8%) |
|||||||||
|
Comprehensive income (loss) attributable to: |
|||||||||||||||||||
|
Stockholders of the parent |
151 |
4,961 |
258 |
8,467 |
(41.4%) |
151 |
4,961 |
98 |
3,215 |
54.3% |
|||||||||
|
Non-controlling interests |
(3) |
(114) |
0 |
3 |
- |
(3) |
(114) |
(11) |
(365) |
(68.8%) |
|||||||||
|
Earnings per share-basic |
0.008 |
0.25 |
0.011 |
0.36 |
0.008 |
0.25 |
0.004 |
0.14 |
|||||||||||
|
Earnings per ADS (2) |
0.038 |
1.25 |
0.055 |
1.80 |
0.038 |
1.25 |
0.021 |
0.70 |
|||||||||||
|
Weighted average number of shares |
|||||||||||||||||||
|
outstanding (in millions) |
12,408 |
12,510 |
12,408 |
12,525 |
|||||||||||||||
|
Notes: |
|||||||||||||||||||
|
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2015 exchange rate of NT $32.81 per U.S. Dollar. |
|||||||||||||||||||
|
(2) 1 ADS equals 5 common shares. |
|||||||||||||||||||
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
|||||||||||||
|
Consolidated Condensed Statements of Comprehensive Income |
|||||||||||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
|||||||||||||
|
Except Per Share and Per ADS Data |
|||||||||||||
|
For the Three-Month Period Ended |
For the Twelve-Month Period Ended |
||||||||||||
|
December 31, 2015 |
December 31, 2015 |
||||||||||||
|
US$ |
NT$ |
% |
US$ |
NT$ |
% |
||||||||
|
Net operating revenues |
1,032 |
33,849 |
100.0% |
4,414 |
144,830 |
100.0% |
|||||||
|
Operating costs |
(819) |
(26,870) |
(79.4%) |
(3,446) |
(113,061) |
(78.1%) |
|||||||
|
Gross profit |
213 |
6,979 |
20.6% |
968 |
31,769 |
21.9% |
|||||||
|
Operating expenses |
|||||||||||||
|
- Sales and marketing expenses |
(32) |
(1,044) |
(3.1%) |
(124) |
(4,064) |
(2.8%) |
|||||||
|
- General and administrative expenses |
(28) |
(916) |
(2.7%) |
(114) |
(3,730) |
(2.6%) |
|||||||
|
- Research and development expenses |
(95) |
(3,105) |
(9.1%) |
(371) |
(12,175) |
(8.4%) |
|||||||
|
Subtotal |
(155) |
(5,065) |
(14.9%) |
(609) |
(19,969) |
(13.8%) |
|||||||
|
Net other operating income and expenses |
(1) |
(34) |
(0.1%) |
(29) |
(964) |
(0.6%) |
|||||||
|
Operating income |
57 |
1,880 |
5.6% |
330 |
10,836 |
7.5% |
|||||||
|
Net non-operating income and expenses |
28 |
906 |
2.6% |
88 |
2,876 |
2.0% |
|||||||
|
Income from continuing operations before
|
85 |
2,786 |
8.2% |
418 |
13,712 |
9.5% |
|||||||
|
Income tax benefit(expense) |
9 |
285 |
0.9% |
(27) |
(876) |
(0.6%) |
|||||||
|
Net income |
94 |
3,071 |
9.1% |
391 |
12,836 |
8.9% |
|||||||
|
Other comprehensive Income (loss) |
54 |
1,776 |
5.2% |
(54) |
(1,795) |
(1.3%) |
|||||||
|
Total comprehensive income (loss) |
148 |
4,847 |
14.3% |
337 |
11,041 |
7.6% |
|||||||
|
Net income attributable to: |
|||||||||||||
|
Stockholders of the parent |
96 |
3,160 |
9.3% |
410 |
13,449 |
9.3% |
|||||||
|
Non-controlling interests |
(2) |
(89) |
(0.2%) |
(19) |
(613) |
(0.4%) |
|||||||
|
Comprehensive income (loss) attributable to: |
|||||||||||||
|
Stockholders of the parent |
151 |
4,961 |
14.7% |
357 |
11,716 |
8.1% |
|||||||
|
Non-controlling interests |
(3) |
(114) |
(0.4%) |
(20) |
(675) |
(0.5%) |
|||||||
|
Earnings per share-basic |
0.008 |
0.25 |
0.033 |
1.08 |
|||||||||
|
Earnings per ADS (2) |
0.038 |
1.25 |
0.165 |
5.40 |
|||||||||
|
Weighted average number of shares
|
12,408 |
12,508 |
|||||||||||
|
Notes: |
|||||||||||||
|
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2015 exchange rate of NT $32.81 per U.S. Dollar. |
|||||||||||||
|
(2) 1 ADS equals 5 common shares. |
|||||||||||||
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
||||
|
Consolidated Condensed Statement of Cash Flows |
||||
|
For The Twelve-Month Period Ended December 31, 2015 |
||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
||||
|
USD |
NTD |
|||
|
Cash flows from operating activities : |
||||
|
Net income before tax |
418 |
13,712 |
||
|
Depreciation & Amortization |
1,386 |
45,472 |
||
|
Gain on disposal of investments |
(76) |
(2,496) |
||
|
Impairment loss on financial assets |
38 |
1,245 |
||
|
Impairment loss on non-financial assets |
31 |
1,021 |
||
|
Changes in notes & accounts receivable |
105 |
3,430 |
||
|
Changes in inventory |
(58) |
(1,918) |
||
|
Changes in other current assets |
65 |
2,117 |
||
|
Changes in assets, liabilities and others |
(8) |
(197) |
||
|
Income tax paid |
(71) |
(2,343) |
||
|
Net cash provided by operating activities |
1,830 |
60,043 |
||
|
Cash flows from investing activities : |
||||
|
Acquisition of available-for-sale financial assets |
(146) |
(4,801) |
||
|
Proceeds from disposal of available-for-sale financial assets |
60 |
1,964 |
||
|
Acquisition ofinvestments accounted for under the equity method |
(75) |
(2,475) |
||
|
Acquisition of property, plant and equipment |
(1,844) |
(60,504) |
||
|
Increase in refundable deposits |
(46) |
(1,503) |
||
|
Acquisition of intangible assets |
(33) |
(1,088) |
||
|
Increase in other noncurrent assets-others |
(33) |
(1,087) |
||
|
Others |
22 |
758 |
||
|
Net cash used in investing activities |
(2,095) |
(68,736) |
||
|
Cash flows from financing activities : |
||||
|
Proceeds from bonds issued |
562 |
18,425 |
||
|
Proceeds from long-term loans |
151 |
4,953 |
||
|
Repayments of long-term loans |
(163) |
(5,338) |
||
|
Increase in other financial liabilities |
186 |
6,108 |
||
|
Cash dividends |
(211) |
(6,939) |
||
|
Treasury stockacquired |
(67) |
(2,203) |
||
|
Others |
1 |
43 |
||
|
Net cash provided by financing activities |
459 |
15,049 |
||
|
Effect of exchange rate changes on cash and cash equivalents |
22 |
722 |
||
|
Net increase in cash and cash equivalents |
216 |
7,078 |
||
|
Cash and cash equivalents at beginning of period |
1,408 |
46,212 |
||
|
Cash and cash equivalents at end of period |
1,624 |
53,290 |
||
|
Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2015 exchange rate of NT $32.81 per U.S. Dollar. |
||||
[1]Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending Dec 31, 2015, the three-month period ending Sep 30, 2015, and the equivalent three-month period that ended Dec 31, 2014. For all 4Q15 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Dec 31, 2015 exchange rate of NT$ 32.81 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-fourth-quarter-2015-results-300210498.html
SOURCE United Microelectronics Corporation
| Contact: |
| United Microelectronics Corporation
Web: http://www.umc.com |