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UMC Reports First Quarter 2016 Results

Strong 28nm demand to fuel 2Q16 revenue growth

First Quarter 2016 Overview1:

TAIPEI, Taiwan — (BUSINESS WIRE) — April 27, 2016 — United Microelectronics Corporation (NYSE: UMC) (TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the first quarter of 2016.

First quarter consolidated revenue was NT$34.40 billion, up 1.6% sequentially from NT$33.85 billion in 4Q15 and down 8.6% YoY from NT$37.65 billion in 1Q15. 1Q16 consolidated gross margin was 14.6%. Net income attributable to the stockholders of the parent was NT$0.21 billion, with earnings per ordinary share of NT$0.02.

Mr. Po-Wen Yen, CEO of UMC, said “In the first quarter of 2016, our foundry revenue grew 2.1% sequentially to NT$34.31 billion. Foundry operating margin was 0.5%. Overall capacity utilization was 82%, bringing wafer shipments to 1.43 million 8-inch equivalent wafers. Towards the end of 2015, we saw signs that the inventory cycle was hitting bottom. Since then, the inventory correction has completed its course, with normal seasonal patterns resuming for 1H16. On February 6, just as Chinese New Year was beginning, Southern Taiwan experienced a severe earthquake that impacted UMC’s 300mm Fab 12A in Tainan Science Park. However, due to UMC’s stringent safety protocols, efficient execution of our earthquake recovery SOP and dedicated personnel, we returned to normal production in just a few working days to sustain 1Q16 revenues within our original guidance. In compliance with our ISO 22301 certification, UMC’s business continuity practices ensured accountability on property damage as well as the safety & health of our employees. We will continue to ensure a state of readiness by implementing disaster protocols that introduce business continuity elements within our foundry operations.”

CEO Yen continued, “UMC recently announced an agreement with ARM to develop multiple physical IP platforms to accelerate customers’ implementation of ARM Artisan IP on our 55nm ultra low power, 40nm and 28nm technologies for mobile, embedded and IoT chip designs. The partnership will further strengthen UMC’s IP portfolio to deliver optimized design support solutions across a broad range of applications. Looking into 2Q16, new product launches in wireless devices will serve as a positive catalyst, leading to stronger end market demand. As a result, we foresee a significant increase in 28nm shipments for the second quarter. We also expect to receive many new 28nm tape outs during 2016 that include mobile and consumer applications, which will further diversify our 28nm product pipeline and contribute to 28nm revenue growth. While we continue to work towards business growth and market share expansion, the Board of Directors recently proposed to distribute a NT$0.55 per share cash dividend to achieve a balance between shareholders’ interests and company expansion. We continue to believe that our efforts in advanced and specialty processes will serve as a long-term catalyst to bring new prosperity and profitability for UMC employees, customers and shareholders.”

Summary of Operating Results

Operating Results
(Amount: NT$ million)   1Q16   4Q15   QoQ %
change 		  1Q15   YoY %
change
Net Operating Revenues   34,404   33,849   1.6   37,650   (8.6)
Gross Profit 5,034 6,979 (27.9) 9,155 (45.0)
Operating Expenses (5,065) (5,065) 0.0 (4,914) 3.1
Net Other Operating Income and Expenses 15 (34) - (142) -
Operating Income (Loss) (16) 1,880 - 4,099 -
Net Non-Operating Income and Expenses 46 906 (94.9) 255 (82.0)
Net Income Attributable to Stockholders of the Parent 210 3,160 (93.4) 3,980 (94.7)

EPS (NT$ per share)

0.02 0.25 0.32

(US$ per ADS)

  0.003   0.039       0.050    

Consolidated revenues in 1Q16 rose 1.6% sequentially to NT$34.40 billion, including NT$34.31 billion from the foundry segment. Gross profit during the quarter declined 27.9% QoQ to NT$5.03 billion, or 14.6% of revenue. Operating expenses remained at NT$5.07 billion resulting in an operating loss of NT$16 million. Net non-operating income decreased 94.9% QoQ to NT$46 million. Net income attributable to stockholders of the parent in 1Q16 was NT$210 million.

Earnings per ordinary share for the quarter was NT$0.02. Earnings per ADS were US$0.003. The basic weighted average number of outstanding shares in 1Q16 was 12,408,239,978, compared with 12,407,897,412 shares in 4Q15 and 12,526,260,458 shares in 1Q15. The diluted weighted average number of outstanding shares was 12,492,270,589 in 1Q16, compared with 13,601,975,910 shares in 4Q15 and 12,660,046,525 shares in 1Q15. The fully diluted share count on March 31, 2016 was approximately 13,858,726,000. On March 31, 2016, UMC held 334 million treasury shares acquired from the 15th and 16th share buy-back programs.

Detailed Financials Section

Consolidated revenues increased 1.6% in 1Q16 to NT$34.40 billion, reflecting early year seasonality. Cost of goods sold increased 9.3% to NT$29.37 billion due to a 7.5% increase in depreciation and a 10.3% increase in other manufacturing costs including costs associated with the February 6, 2016 earthquake. 1Q16 gross profit decreased 27.9% sequentially to NT$5.03 billion, due to the increase in cost of goods sold. Operating expenses remained at NT$5.07 billion. R&D expenses represented 9.0% of operating revenues. Operating loss was NT$16 million for the quarter.

COGS & Expenses
(Amount: NT$ million)   1Q16   4Q15   QoQ %
change 		  1Q15   YoY %
change
Net Operating Revenues   34,404   33,849   1.6   37,650   (8.6)
COGS (29,370) (26,870) 9.3 (28,495) 3.1
Depreciation (10,424) (9,700) 7.5 (9,115) 14.4
Other Mfg. Costs (18,946) (17,170) 10.3 (19,380) (2.2)
Gross Profit 5,034 6,979 (27.9) 9,155 (45.0)
Gross Margin (%) 14.6% 20.6% 24.3%
Operating Expenses (5,065) (5,065) 0.0 (4,914) 3.1
G&A (970) (916) 5.9 (953) 1.8
Sales & Marketing (1,010) (1,044) (3.3) (1,045) (3.3)
R&D (3,085) (3,105) (0.6) (2,916) 5.8
Net Other Operating

Income & Expenses

15 (34) - (142) -
Operating Income (Loss)   (16)  

1,880

  -  

4,099

  -

Net non-operating income in 1Q16 was NT$46 million, including a NT$223 million gain on disposal of investment, which was offset by an exchange loss of NT$167 million.

Non-Operating Income and Expenses

(Amount: NT$ million)   1Q16   4Q15   1Q15
Non-Operating Income and Expenses   46   906   255
Net Interest Income and Expenses (57) (19) (27)
Net Investment Gain and Loss (14) 230

126

Gain and Loss on Disposal of Investment 223 376 190
Exchange Gain and Loss (167) (35) (77)
Other Gain and Loss   61   354   43

Cash inflow from operating activities reached NT$11.45 billion. Net cash outflow from investing activities totaled NT$19.30 billion, including NT$20.48 billion CAPEX spending for the foundry segment, resulting in a free cash outflow of NT$9.04 billion during 1Q16. Cash inflow from financing activities reached NT$14.54 billion, mainly due to the acquisition of United Semiconductor (Xiamen), leading to the increase in other financial liabilities of NT$13.63 billion. Net cash inflow for 1Q16 was NT$6.25 billion. Over the next 12 months, the company expects to repay NT$4.34 billion in bank loans.

Cash Flow Summary

(Amount: NT$ million)   For the 3-Month Period Ended

Mar. 31, 2016

  For the 3-Month Period Ended

Dec. 31, 2015

Cash Flow from Operating Activities   11,449   15,428
Net income before tax 30 2,786
Depreciation & Amortization 12,665 11,938
Gain on disposal of investments (223) (376)
Changes in working capital (639) 1,340
Other (384) (260)
Cash Flow from Investing Activities (19,303) (17,065)
Capital expenditures (20,487) (13,350)
Acquisition of AFS financial assets (45) (2,004)
Proceeds from disposal of AFS financial assets 642 591
Proceeds from disposal of financial assets measured at cost 519 58
Acquisition of investments accounted

for under the equity method

- (2,364)
Proceeds from capital reduction and liquidation of investments 6 256
Changes in refundable deposits 459 (159)
Acquisition of intangible assets (452) (165)
Other 55 72
Cash Flow from Financing Activities 14,538 2,893
Bank loans 910 2,886
Increase in other financial liabilities 13,634 -
Other (6) 7
Effect of Exchange Rate (433) (109)
Net Cash Flow   6,251   1,147

Cash and cash equivalents increased to NT$59.54 billion, mainly due to the capital injection for United Semiconductor (Xiamen). The days of inventory decreased 6 days to 52 days.

Current Assets
(Amount: NT$ billion)   1Q16   4Q15   1Q15
Cash and Cash Equivalents   59.54   53.29   53.63
Notes & Accounts Receivable 19.65 19.33 20.62
Days Sales Outstanding 52 53 52
Inventories, net 15.84 17.64 15.64
Days of Inventory 52 58 49
Total Current Assets   101.92   94.82   101.03

Current liabilities decreased to NT$41.63 billion, primarily reflecting the decrease in payable on equipment. Long-term investment liabilities increased to NT$19.28 billion. Total liabilities increased to NT$116.49 billion, leading to a debt to equity ratio of 51%.

Liabilities
(Amount: NT$ billion)   1Q16   4Q15   1Q15
Total Current Liabilities   41.63   48.25   44.44
Notes & Accounts Payable 6.32 5.95 6.38
Short-Term Credit / Bonds 11.74 12.11 10.85
Payable on Equipment 8.25 14.66 7.41
Liabilities directly associated with non-current assets held for sale

-

-

4.45

Other 15.32 15.53 15.35
Long-Term Credit / Bonds 48.72 47.52 34.89
Long-Term Investment Liabilities 19.28 6.06 6.03
Total Liabilities 116.49 108.55 91.80
Debt to Equity   51%   47%   40%

Analysis of Revenue2 for Foundry Segment

Revenue contribution from Asia Pacific increased to 45% in 1Q16, as the region showed an increase in computer segment revenues.

Revenue Breakdown by Region
Region   1Q16   4Q15   3Q15   2Q15   1Q15
North America   48%   47%   45%   46%   47%
Asia Pacific   45%   37%   41%   42%   40%
Europe   3%   6%   6%   6%   7%
Japan   4%   10%   8%   6%   6%

The earthquake on February 6, 2016 disrupted UMC’s Fab 12A operations, decreasing 28nm revenue contribution to 8% in 1Q16.

Revenue Breakdown by Geometry
Geometry   1Q16   4Q15   3Q15   2Q15   1Q15
28nm and below   8%   11%   10%   11%   9%
28nm<x<=40nm   29%   24%   25%   22%   24%
40nm<x<=65nm   19%   23%   21%   21%   23%
65nm<x<=90nm   4%   4%   4%   6%   5%
90nm<x<=0.13um   12%   12%   14%   14%   13%
0.13um<x<=0.18um   13%   11%   11%   12%   12%
0.18um<x<=0.35um   12%   12%   12%   11%   11%
0.5um and above   3%   3%   3%   3%   3%

Fabless customers accounted for 91% of revenue in 1Q16.

Revenue Breakdown by Customer Type
Customer Type   1Q16   4Q15   3Q15   2Q15   1Q15
Fabless   91%   85%   88%   89%   90%
IDM   9%   15%   12%   11%   10%

Revenue from the computer segment increased to 15% during 1Q16, primarily driven by the increasing demand from storage and display applications. Sales from the communication segment declined to 48%.

Revenue Breakdown by Application (1)
Application   1Q16   4Q15   3Q15   2Q15   1Q15
Computer   15%   11%   11%   12%   13%
Communication   48%   52%   55%   55%   56%
Consumer   30%   29%   27%   28%   26%
Others   7%   8%   7%   5%   5%

(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 1Q16.

(To view ASP trend, visit http://www.umc.com/english/investors/1Q16_ASP_trend.asp)

Shipment and Utilization Rate3 for Foundry Segment

Wafer shipments increased 3.5% to 1,432K in 1Q16. Quarterly capacity increased to 1,692K, resulting in an overall utilization rate of 82% for the quarter.

Wafer Shipments
    1Q16   4Q15   3Q15   2Q15   1Q15
Wafer Shipments
(8” K equivalents) 		  1,432   1,384   1,467   1,536   1,481
 
Quarterly Capacity Utilization Rate
    1Q16   4Q15   3Q15   2Q15   1Q15
Utilization Rate   82%   83%   89%   94%   93%
Total Capacity
(8” K equivalents) 		  1,692   1,690   1,685   1,659   1,583

Capacity4 for Foundry Segment

Overall capacity during the first quarter increased to 1,692K 8-inch equivalent wafers. Estimated capacity in the second quarter will increase 1.8% sequentially to 1,723K 8-inch equivalent wafers, mainly due to capacity deployment at Fab 12A and Fab 8F.

Annual Capacity in

thousands of wafers

      Quarterly Capacity in

thousands of wafers

FAB   Geometry
(um) 		  2015   2014   2013   2012 FAB   2Q16E   1Q16   4Q15   3Q15
WTK   6"   3.5 – 0.45   311   -   -   - WTK   106   105   99   99
Fab 6A   6"   3.5 – 0.45   111   448   448   481 Fab 8A   207   206   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   86   85   86   86
Fab 8D   8"   0.13 – 0.09   341   358   382   371 Fab 8E   105   104   105   105
Fab 8E   8"   0.5 – 0.18   418   418   418   449 Fab 8F   100   97   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   188   187   183   178
Fab 8N   8"   0.5 – 0.13   667   547   469   - Fab 12A   214   205   206   206
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   1,723   1,692   1,690   1,685
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

CAPEX spending in 1Q16 totaled US$612 million. Full year 2016 CAPEX plan is budgeted for US$2.2 billion, with 95% deployed for 300mm expansion

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

Second Quarter of 2016 Outlook & Guidance

Quarter-over-Quarter Guidance:

Recent Developments / Announcements

Apr 18, 2016    

UMC Files Form 20-F for 2015 with US Securities and Exchange Commission

Apr 15, 2016

UMC Standardizes on Industry-Leading ARM Artisan Platform for Physical IP

Apr 15, 2016

UMC Holds 2016 China Technology Forum

Mar 16, 2016

UMC Board of Directors Announces Proposals for its Annual Shareholders Meeting

Feb 6, 2016

UMC Statement Regarding Recent Taiwan Earthquake

Jan 27, 2016

UMC 4Q 2015 Financial Results

Please visit UMC’s website for further details regarding the above announcements

Conference Call / Webcast Announcement

Wednesday, April 27, 2016

Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)

Dial-in numbersand 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 1Q16 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 introduction of new services and technologies, future outsourcing, competition, wafer capacity, 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. 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 United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States 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) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) 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 natural disasters, 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 United States Securities and Exchange Commission. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and 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 Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or 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 generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States.

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.

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 Mar 31, 2016, the three-month period ending Dec 31, 2015, and the equivalent three-month period that ended Mar 31, 2015. For all 1Q16 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Mar 31, 2016 exchange rate of NT$ 32.22 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.

- FINANCIAL TABLES TO FOLLOW -

 
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Balance Sheet
As of March 31, 2016
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
     
 
March 31, 2016
US$ NT$ %
Assets
Current assets
Cash and cash equivalents 1,848 59,541 17.3%
Financial assets at fair value through profit or loss, current 24 766 0.2%
Notes & Accounts receivable, net 610 19,651 5.7%
Inventories, net 491 15,836 4.6%
Other current assets 190 6,125 1.7%
Total current assets 3,163 101,919 29.5%
 
Non-current assets
Funds and investments 1,234 39,757 11.5%
Property, plant and equipment 5,775 186,081 53.9%
Other non-current assets 533 17,174 5.1%
Total non-current assets 7,542 243,012 70.5%
Total assets 10,705 344,931 100.0%
 
Liabilities
Current liabilities
Short-term loans 230 7,398 2.1%
Payables 898 28,924 8.4%
Current portion of long-term liabilities 135 4,343 1.3%
Other current liabilities 29 966 0.3%
Total current liabilities 1,292 41,631 12.1%
 
Non-current liabilities
Bonds payable 1,295 41,722 12.1%
Long-term loans 217 6,999 2.0%
Other non-current liabilities 811 26,134 7.6%
Total non-current liabilities 2,323 74,855 21.7%
Total liabilities 3,615 116,486 33.8%
 
Equity
Equity attributable to the parent company
Capital 3,960 127,581 37.0%
Additional paid-in capital 1,294 41,695 12.1%
Retained earnings, unrealized gain or loss on available-for-sale

financial assets and exchange differences on translation of

foreign operations

1,894 61,020 17.6%
Treasury stock (119) (3,826) (1.1%)
Total equity attributable to the parent company 7,029 226,470 65.6%
Non-controlling interests 61 1,975 0.6%
Total equity 7,090 228,445 66.2%
Total liabilities and equity 10,705 344,931 100.0%
 
 
Note：New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2016 exchange rate of NT $32.22 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
March 31, 2016 March 31, 2015 Chg. March 31, 2016 December 31, 2015 Chg.
US$ NT$ US$ NT$ % US$ NT$ US$ NT$ %
Net operating revenues 1,068 34,404 1,169 37,650 (8.6%) 1,068 34,404 1,051 33,849 1.6%
Operating costs (912) (29,370) (885) (28,495) 3.1% (912) (29,370) (834) (26,870) 9.3%
Gross profit 156 5,034 284 9,155 (45.0%) 156 5,034 217 6,979 (27.9%)
14.6% 14.6% 24.3% 24.3% 14.6% 14.6% 20.6% 20.6%
Operating expenses
- Sales and marketing expenses (31) (1,010) (32) (1,045) (3.3%) (31) (1,010) (33) (1,044) (3.3%)
- General and administrative expenses (30) (970) (30) (953) 1.8% (30) (970) (29) (916) 5.9%
- Research and development expenses (96) (3,085) (91) (2,916) 5.8% (96) (3,085) (96) (3,105) (0.6%)
Subtotal (157) (5,065) (153) (4,914) 3.1% (157) (5,065) (158) (5,065) 0.0%
Net other operating income and expenses 1 15 (4) (142) - 1 15 (1) (34) -
Operating income (loss) (0) (16) 127 4,099 - (0) (16) 58 1,880 -
(0.1%) (0.1%) 10.9% 10.9% (0.1%) (0.1%) 5.6% 5.6%
 
Net non-operating income and expenses 1 46 8 255 (82.0%) 1 46 28 906 (94.9%)
Income from continuing operations before

income tax

1 30 135 4,354 (99.3%) 1 30 86 2,786 (98.9%)
0.1% 0.1% 11.6% 11.6% 0.1% 0.1% 8.2% 8.2%
 
Income tax benefit (expense) 1 49 (14) (442) - 1 49 9 285 (82.8%)
Net income 2 79 121 3,912 (98.0%) 2 79 95 3,071 (97.4%)
0.2% 0.2% 10.4% 10.4% 0.2% 0.2% 9.1% 9.1%
 
Other comprehensive income (loss) (18) (583) (3) (107) 100.0% (18) (583) 55 1,776 -
 
Total comprehensive income (loss) (16) (504) 118 3,805 - (16) (504) 150 4,847 -
 
Net income attributable to:
　　Stockholders of the parent 7 210 124 3,980 (94.7%) 7 210 98 3,160 (93.4%)
　　Non-controlling interests (5) (131) (3) (68) 92.6% (5) (131) (3) (89) 47.2%
 
Comprehensive income (loss) attributable to:
　　Stockholders of the parent (11) (356) 121 3,910 - (11) (356) 154 4,961 -
　　Non-controlling interests (5) (148) (3) (105) 41.0% (5) (148) (4) (114) 29.8%
 
Earnings per share-basic 0.001 0.02 0.010 0.32 0.001 0.02 0.008 0.25
Earnings per ADS (2) 0.003 0.10 0.050 1.60 0.003 0.10 0.039 1.25
Weighted average number of shares
outstanding (in millions) 12,408 12,526 12,408 12,408
                                         
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2016 exchange rate of NT $32.22 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 Three-Month Period Ended
March 31, 2016 March 31, 2016
US$ NT$ % US$ NT$ %
Net operating revenues 1,068 34,404 100.0% 1,068 34,404 100.0%
Operating costs (912) (29,370) (85.4%) (912) (29,370) (85.4%)
Gross profit 156 5,034 14.6% 156 5,034 14.6%
 
 
Operating expenses
- Sales and marketing expenses (31) (1,010) (2.9%) (31) (1,010) (2.9%)
- General and administrative expenses (30) (970) (2.8%) (30) (970) (2.8%)
- Research and development expenses (96) (3,085) (9.0%) (96) (3,085) (9.0%)
Subtotal (157) (5,065) (14.7%) (157) (5,065) (14.7%)
Net other operating income and expenses 1 15 0.0% 1 15 0.0%
Operating Loss (0) (16) (0.1%) (0) (16) (0.1%)
 
Net non-operating income and expenses 1 46 0.2% 1 46 0.2%
Income from continuing operations before

income tax

1 30 0.1% 1 30 0.1%
 
 
Income tax benefit 1 49 0.1% 1 49 0.1%
Net income 2 79 0.2% 2 79 0.2%
 
Other comprehensive income (loss) (18) (583) (1.7%) (18) (583) (1.7%)
 
Total comprehensive income (loss) (16) (504) (1.5%) (16) (504) (1.5%)
 
Net income attributable to:
　　Stockholders of the parent 7 210 0.6% 7 210 0.6%
　　Non-controlling interests (5) (131) (0.4%) (5) (131) (0.4%)
 
Comprehensive income (loss) attributable to:
　　Stockholders of the parent (11) (356) (1.0%) (11) (356) (1.0%)
　　Non-controlling interests (5) (148) (0.5%) (5) (148) (0.5%)
 
Earnings per share-basic 0.001 0.02 0.001 0.02
Earnings per ADS (2) 0.003 0.10 0.003 0.10
 
Weighted average number of shares

outstanding (in millions)

12,408 12,408
                       
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2016 exchange rate of NT $32.22 per U.S. Dollar.
(2) 1 ADS equals 5 common shares.
 
 
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statement of Cash Flows
For The Three-Month Period Ended March 31, 2016
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
 
USD NTD
Cash flows from operating activities :
Net income before tax 1 30
Depreciation & Amortization 393 12,665
Gain on disposal of investments (7) (223)
Share of loss of associates and joint ventures 3 100
Impairment loss on financial assets 3 90
Changes in notes & accounts receivable (13) (409)
Changes in inventory 54 1,740
Changes in prepayments (43) (1,375)
Changes in other current assets (22) (703)
Changes in assets, liabilities and others (14) (466)
Net cash provided by operating activities 355 11,449
 
Cash flows from investing activities :
Acquisition of financial assets at fair value through profit or loss (6) (193)
Proceeds from disposal of financial assets at fair value through profit or loss 5 168
Proceeds from disposal of available-for-sale financial assets 20 642
Proceeds from disposal of financial assets measured at cost 16 519
Acquisition of property, plant and equipment (636) (20,487)
Decrease in refundable deposits 14 459
Acquisition of intangible assets (14) (452)
Others 2 41
Net cash used in investing activities (599) (19,303)
 
Cash flows from financing activities :
Increase in short-term loans 64 2,058
Proceeds from long-term loans 62 2,000
Repayments of long-term loans (98) (3,148)
Increase in other financial liabilities 423 13,634
Others (0) (6)
Net cash provided by financing activities 451 14,538
 
Effect of exchange rate changes on cash and cash equivalents (13) (433)
Net increase in cash and cash equivalents 194 6,251
 
Cash and cash equivalents at beginning of period 1,654 53,290
 
Cash and cash equivalents at end of period 1,848 59,541
 
       
Note: New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2016 exchange rate of NT $32.22 per U.S. Dollar.


Contact:

United Microelectronics Corporation
Bowen Huang / David Wong, + 886-2-2658-9168, ext. 16900
Investor Relations
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