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UMC Reports Fourth Quarter 2017 Results

Full-year foundry revenue in USD increased 7%YoY

Fourth Quarter 2017 Overview1:

TAIPEI, Taiwan — (BUSINESS WIRE) — January 24, 2018 — 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 2017.

Fourth quarter consolidated revenue was NT$36.63 billion, down 2.8% from NT$37.70 billion in 3Q17 and decreased 4.4% YoY from NT$38.31 billion in 4Q16. The consolidated gross margin in 4Q17 was 17.2%. Net income attributable to stockholders of the parent was NT$1.77 billion, with earnings per ordinary share of NT$0.15.

Jason Wang, co-president of UMC, said, “In the fourth quarter of 2017, UMC’s foundry revenue was NT$36.54 billion. During the quarter, our capacity utilization from legacy 8” and 12” technologies continued to reflect robust demand, despite a decrease in 28nm HKMG contribution. The utilization rate of 90% led to overall wafer shipments of 1.67 million 8-inch equivalents. For the full year of 2017, UMC posted a 7% YoY revenue increase in US dollars as wafer shipments increased nearly 11% annually. As a result, our 2017 net income of the parent company grew nearly 16% year on year, despite experiencing unfavorable movement of the NT dollar in the foreign exchange markets.”

Co-president Wang continued, “Looking into the first quarter of 2018, we anticipate our foundry business to remain relatively flat. We are continuing our efforts to capture new 28nm business by working to secure new design opportunities, which will help rebuild our 28nm momentum as these new product tape outs are expected to enter production in the following months. In addition, we will leverage our manufacturing excellence to invest in areas with better ROI potential, including 12” mature technologies as well as tool and equipment upgrades at 8” facilities. As such, our 2018 CAPEX budget will be approximately US$1.1 billion. I believe our approach to optimizing the offerings across 8” and 12” mature technologies while moderating the pace of leading edge expansion will lead to sound financial performance that will preserve the best interests of our shareholders and employees.”

Summary of Operating Results

 
Operating Results
(Amount: NT$ million)   4Q17   3Q17   QoQ %
change 		  4Q16   YoY %
change
Net Operating Revenues   36,631   37,698   (2.8)   38,306   (4.4)
Gross Profit 6,298 6,592 (4.5) 8,759 (28.1)
Operating Expenses (5,198) (5,404) (3.8) (6,627) (21.6)
Net Other Operating Income and Expenses 801 441 81.6 144 456.3
Operating Income (Loss) 1,901 1,629 16.7 2,276 (16.5)
Net Non-Operating Income and Expenses (152) 1,236 - (1,210) (87.4)
Net Income Attributable to Stockholders of the Parent 1,771 3,473 (49.0) 2,548 (30.5)
EPS (NT$ per share) 0.15 0.28 0.21
(US$ per ADS)   0.025   0.047       0.035    
 

Net operating revenues in 4Q17 declined 2.8% to NT$36.63 billion, including NT$36.54 billion from the foundry segment. Revenue contribution from 40nm and below technologies remained at 45%. Gross profit declined 4.5% to NT$6.30 billion, or 17.2% of revenue. Operating expenses decreased 3.8% to NT$5.20 billion. Net other operating income was NT$801 million, leading to operating income of NT$1.90 billion. Net non-operating expense was NT$0.15 billion. Net income attributable to stockholders of the parent was NT$1.77 billion.

Earnings per ordinary share for the quarter was NT$0.15. Earnings per ADS was US$0.025. The basic weighted average number of outstanding shares in 4Q17 was 12,208,239,978, compared with 12,208,239,978 shares in 3Q17 and 12,208,239,978 shares in 4Q16. The diluted weighted average number of outstanding shares was 13,474,873,551 in 4Q17, compared with 13,441,188,010 shares in 3Q17 and 13,442,173,503 shares in 4Q16. The fully diluted share count on December 31, 2017 was approximately 13,890,953,000. On December 31, 2017, UMC held 400 million treasury shares acquired from the 16th and 17th share buy-back programs.

Detailed Financials Section

 
COGS & Expenses
(Amount: NT$ million)   4Q17   3Q17   QoQ %
change 		  4Q16   YoY %
change
Net Operating Revenues   36,631   37,698   (2.8)   38,306   (4.4)
COGS (30,333) (31,106) (2.5) (29,547) 2.7
Depreciation (10,990) (11,145) (1.4) (11,314) (2.9)
Other Mfg. Costs (19,343) (19,961) (3.1) (18,233) 6.1
Gross Profit 6,298 6,592 (4.5) 8,759 (28.1)
Gross Margin (%) 17.2% 17.5% 22.9%
Operating Expenses (5,198) (5,404) (3.8) (6,627) (21.6)
G&A (1,164) (991) 17.5 (1,521) (23.5)
Sales & Marketing (944) (1,070) (11.8) (1,282) (26.4)
R&D (3,090) (3,343) (7.6) (3,824) (19.2)
Net Other Operating

Income & Expenses

801 441 81.6 144 456.3
Operating Income   1,901   1,629   16.7   2,276   (16.5)
 

Net operating revenues decreased 2.8% to NT$36.63 billion. COGS decreased to NT$30.33 billion, as depreciation declined 1.4% to NT$10.99 billion. Other manufacturing costs fell 3.1% to NT$19.34 billion. Gross profit was NT$6.30 billion. Operating expenses declined 3.8% to NT$5.20 billion. General and Administrative (G&A) expenses increased 17.5% to NT$1.16 billion. Sales & Marketing fell 11.8% to NT$0.94 billion and R&D expense decreased 7.6% to NT$3.09 billion, or 8.4% of net operating revenues. Net other operating income was NT$801 million, leading to an operating income of NT$1.90 billion.

 
Non-Operating Income and Expenses
(Amount: NT$ million)   4Q17   3Q17   4Q16
Non-Operating Income and Expenses   (152)   1,236   (1,210)
Net Interest Income and Expenses (542) (538) (418)
Net Investment Gain and Loss (80) 478 (1,138)
Gain and Loss on Disposal of Investment (22) 538 1,023
Exchange Gain and Loss 500 776 (496)
Other Gain and Loss   (8)   (18)   (181)
 

Net non-operating expense in 4Q17 was NT$152 million, which primarily resulted from the difference in the exchange gain of NT$500 million offset by an NT$542 million in net interest expense and net investment loss of NT$80 million.

 

Cash Flow Summary

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

Dec. 31, 2017

  For the 3-Month Period Ended

Sep. 30, 2017

Cash Flow from Operating Activities   12,899   11,447
Net income before tax 1,749 2,865
Depreciation & Amortization 13,227 13,487
Loss (gain) on disposal of investments 22 (538)
Impairment loss on financial assets 254 300
Exchange gain on financial assets and liabilities (642) (541)
Changes in working capital (655) (2,971)
Income tax paid (152) (933)
Other (904) (222)
Cash Flow from Investing Activities (6,034) (4,984)
Capital expenditures (10,961) (7,288)
Proceeds from disposal of AFS financial assets 313 563
Acquisition of intangible assets (360) (251)
Other 4,974 1,992
Cash Flow from Financing Activities 5,214 (4,604)
Bank loans (41) 1,482
Bonds Issued 5,400 -
Cash dividends 9 (6,112)
Other (154) 26
Effect of Exchange Rate (343) (54)
Net Cash Flow   11,736   1,805
 

Cash inflow from operating activities reached NT$12.90 billion. Cash outflow from investing activities totaled NT$6.03 billion, including NT$10.96 billion in CAPEX spending for the foundry segment, resulting in a free cash inflow of NT$1.94 billion. Cash inflow from financing activities was NT$5.21 billion, mainly from a NT$5.40 billion in bond issuance. Net cash inflow in 4Q17 was NT$11.74 billion. Over the next 12 months, the company expects to repay NT$2.52 billion in bank loans.

 
Current Assets
(Amount: NT$ billion)   4Q17   3Q17   4Q16
Cash and Cash Equivalents   81.68   69.94   57.58
Notes & Accounts Receivable 20.97 22.61 23.05
Days Sales Outstanding 54 54 54
Inventories, net 18.26 17.10 17.00
Days of Inventory 53 49 53
Total Current Assets   139.16   124.71   110.47
 

Cash and cash equivalents increased to NT$81.68 billion. Days of inventory increased to 53 days.

 
Liabilities
(Amount: NT$ billion)   4Q17   3Q17   4Q16
Total Current Liabilities   88.06   82.36   71.98
Notes & Accounts Payable 6.54 6.61 6.85
Short-Term Credit / Bonds 52.81 48.74 31.05
Payable on Equipment 4.67 5.23 15.04
Other 24.04 21.78 19.04
Long-Term Credit / Bonds 53.32 52.36 60.73
Long-Term Investment Liabilities 20.49 20.34 20.31
Total Liabilities 180.06 169.74 167.91
Debt to Equity   84%   79%   77%
 

Current liabilities increased to NT$88.06 billion, mainly resulting from an increase in Short-Term Credit/Bonds. Total liabilities increased to NT$180.06 billion, leading to a debt to equity ratio of 84%.

Analysis of Revenue2 for Foundry Segment

 
Revenue Breakdown by Region
Region   4Q17   3Q17   2Q17   1Q17   4Q16
North America   43%   43%   42%   41%   48%
Asia Pacific   45%   47%   47%   50%   45%
Europe   9%   8%   7%   5%   4%
Japan   3%   2%   4%   4%   3%
         

Revenue from Asia Pacific declined to 45% while sales from North American customers remained flat at 43%. Revenue contribution from Japan increased to 3%.

 
Revenue Breakdown by Geometry
Geometry   4Q17   3Q17   2Q17   1Q17   4Q16
14nm and below   2%   1%   1%   0%   -
14nm<x<=28nm   15%   15%   17%   17%   22%
28nm<x<=40nm   28%   29%   28%   29%   26%
40nm<x<=65nm   12%   12%   12%   13%   14%
65nm<x<=90nm   5%   6%   5%   4%   3%
90nm<x<=0.13um   12%   12%   12%   11%   11%
0.13um<x<=0.18um   13%   12%   12%   13%   11%
0.18um<x<=0.35um   10%   10%   10%   10%   10%
0.5um and above   3%   3%   3%   3%   3%
         

14nm accounted for 2% of 4Q17 revenue, while 28nm contribution remained at 15%.

 
Revenue Breakdown by Customer Type
Customer Type   4Q17   3Q17   2Q17   1Q17   4Q16
Fabless   91%   90%   91%   93%   93%
IDM   9%   10%   9%   7%   7%
         

Fabless customers represented 91% of revenue in 4Q17.

 
Revenue Breakdown by Application (1)
Application   4Q17   3Q17   2Q17   1Q17   4Q16
Computer   13%   14%   14%   12%   13%
Communication   49%   47%   48%   51%   53%
Consumer   29%   31%   29%   28%   26%
Others   9%   8%   9%   9%   8%
         

Communication business increased to 49%. Revenue from the consumer segment declined to 29%.

(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) remained unchanged in 4Q17.

(To view ASP trend, visit http://www.umc.com/english/investors/4Q17_ASP_trend.asp)

Shipment and Utilization Rate3 for Foundry Segment

 
Wafer Shipments
    4Q17   3Q17   2Q17   1Q17   4Q16
Wafer Shipments
(8” K equivalents) 		  1,670   1,748   1,741   1,678   1,656
 
 
Quarterly Capacity Utilization Rate
    4Q17   3Q17   2Q17   1Q17   4Q16
Utilization Rate   90%   96%   96%   96%   94%
Total Capacity
(8” K equivalents) 		  1,886   1,861   1,816   1,742   1,794
         

During 4Q17, wafer shipments decreased 4.5% to 1,670K. Capacity increased by 1.3% QoQ to 1,886K, resulting in an overall utilization rate of 90% in 4Q17.

Capacity4 for Foundry Segment

Total capacity in the fourth quarter was 1,886K 8-inch equivalent wafers. We expect that first quarter capacity will decline to 1,858K 8-inch equivalent wafers, mainly due to fewer working days and tool maintenance.

   
Annual Capacity in

thousands of wafers

Quarterly Capacity in

thousands of wafers

FAB   Geometry
(um) 		  2017   2016   2015   2014 FAB   1Q18E   4Q17   3Q17   2Q17
WTK   6"   3.5 – 0.45   422   423   421   448 WTK   104   106   106   106
Fab 8A   8"   0.5 – 0.25   825   827   813   813 Fab 8A   204   207   207   207
Fab 8C   8"   0.35 – 0.11   357   348   347   347 Fab 8C   91   92   92   87
Fab 8D   8"   0.13 – 0.09   341   342   341   358 Fab 8D   85   86   86   86
Fab 8E   8"   0.5 – 0.18   418   419   418   418 Fab 8E   103   105   105   105
Fab 8F   8"   0.18 – 0.11   417   401   388   388 Fab 8F   107   108   107   102
Fab 8S   8"   0.18 – 0.11   347   336   335   335 Fab 8S   92   93   87   84
Fab 8N   8"   0.5 – 0.11   753   750   667   547 Fab 8N   190   194   188   188
Fab 12A   12"   0.13 – 0.014   970   885   793   700 Fab 12A   246   250   247   247
Fab 12i   12"   0.13 – 0.040   537   584   572   573 Fab 12i   131   134   134   134
Fab 12X   12"   0.040 – 0.028   97   9   -   - Fab 12X   35   35   33   19
Total(1)   7,304   6,983   6,617   6,323 Total   1,858   1,886   1,861   1,816
YoY Growth Rate   5%   6%   5%   4%        
       

(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   2017   2016   2015   2014   2013
CAPEX   $ 1.4   $ 2.8   $ 1.9   $ 1.4   $ 1.1
         

2018 CAPEX Plan

8"   12"   Total
33%   67%   US$1.1 billion

CAPEX spending in 4Q17 was US$364 million, bringing 2017’s total CAPEX to US$1.4 billion. Our 2018 CAPEX budget will be approximately US$1.1 billion.

Brief Summary of Full Year 2017 Consolidated Results

 
Operating Results
(Amount: NT$ million)   2017   2016   YoY %
change
Net Operating Revenues   149,285   147,870   1.0
Gross Profit 27,058 30,379 (10.9)
Operating Expenses (22,143) (23,922) (7.4)
Net Other Operating Income & Expenses 1,653 (263) -
Operating Income 6,568 6,194 6.0
Net Non-Operating Income & Expenses 1,230 (1,347) -
Income Tax Expenses (1,167) (984) 18.6
Net Income Attributable to Stockholders of the Parent 9,629 8,316 15.8
EPS (NT$ per share) 0.79 0.68
(US$ per ADS)   0.133   0.114    
 

Annual Sales Breakdown in Revenue for Foundry Segment

       
Region     2017     2016
North America     43%     49%
Asia Pacific     47%     44%
Europe     7%     4%
Japan     3%     3%
             
Technology     2017     2016
14nm and below     1%     -
14nm<x<=28nm     16%     17%
28nm<x<=40nm     28%     27%
40nm<x<=65nm     12%     16%
65nm<x<=90nm     5%     4%
90nm<x<=0.13um     12%     11%
0.13um<x<=0.18um     12%     12%
0.18um<x<=0.35um     10%     10%
0.5um and above     4%     3%
             
Customer Type     2017     2016
Fabless     91%     92%
IDM     9%     8%
             
Application     2017     2016
Computer     13%     13%
Communication     49%     53%
Consumer     29%     27%
Others     9%     7%
 

First Quarter of 2018 Outlook & Guidance

Quarter-over-Quarter Guidance:

Recent Developments / Announcements

 

Dec. 21, 2017 UMC Announces Availability of 40nm SST Embedded Flash Process

 

Nov. 30, 2017 UMC Fab 12i Wins Singapore’s National Water Efficiency Award

 

Nov. 15, 2017 Cypress Achieves Aerospace-Grade QML Certification for 65nm and 40nm SRAM at UMC

 

Oct. 30, 2017 UMC Obtains LEED Gold Certification for Fab 12X

 

Oct. 25, 2017 UMC 3Q 2017 Financial Results

 

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

 
 

Conference Call / Webcast Announcement

 

Wednesday, January 24, 2018

 

Time: 5:00 PM (Taipei) / 4:00 AM (New York) / 09:00 AM (London)

 
Dial-in numbers and Access Codes:
USA Toll Free: 1-866 836-0101
Taiwan Number: 02-2192-8016
Other Areas: +886-2-2192-8016
Access Code: UMC
 

A live webcast and replay of the 4Q17 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 comprehensive foundry solutions enable chip designers to leverage the company’s sophisticated technology and manufacturing, which include high volume 28nm High-K/Metal Gate technology, 14nm FinFET mass production, ultra-low power platform processes specifically developed for Internet of Things (IoT) applications and the automotive industry’s highest-rated AEC-Q100 Grade-0 manufacturing capabilities for the production of ICs found in vehicles. UMC’s 11 wafer fabs are strategically located throughout Asia and are able to produce nearly 600,000 wafers per month. The company employs over 19,000 people worldwide, with offices in Taiwan, 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 December 31, 2017, the three-month period ending September 30, 2017, and the equivalent three-month period that ended December 31, 2016. For all 4Q17 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2017 exchange rate of NT$ 29.78 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 December 31, 2017
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
   
 
December 31, 2017
US$ NT$ %
Assets
Current assets
Cash and cash equivalents 2,743 81,675 20.7%
Financial assets at fair value through profit or loss, current 24 717 0.2%
Notes & Accounts receivable, net 704 20,974 5.3%
Inventories, net 613 18,258 4.6%
Other current assets 589 17,536 4.5%
Total current assets 4,673 139,160 35.3%
 
Non-current assets
Funds and investments 1,143 34,040 8.6%
Property, plant and equipment 6,909 205,742 52.2%
Other non-current assets 509 15,157 3.9%
Total non-current assets 8,561 254,939 64.7%
Total assets 13,234 394,099 100.0%
 
Liabilities
Current liabilities
Short-term loans 854 25,446 6.5%
Payables 949 28,267 7.2%
Current portion of long-term liabilities 919 27,364 6.9%
Other current liabilities 235 6,984 1.8%
Total current liabilities 2,957 88,061 22.4%
 
Non-current liabilities
Bonds payable 795 23,676 6.0%
Long-term loans 995 29,643 7.5%
Other non-current liabilities 1,300 38,681 9.8%
Total non-current liabilities 3,090 92,000 23.3%
Total liabilities 6,047 180,061 45.7%
 
Equity
Equity attributable to the parent company
Capital 4,239 126,243 32.0%
Additional paid-in capital 1,372 40,859 10.4%
Retained earnings, unrealized gain or loss on available-for-sale

financial assets and exchange differences on translation of

foreign operations

1,702 50,698 12.9%
Treasury stock (158) (4,719) (1.2%)
Total equity attributable to the parent company 7,155 213,081 54.1%
Non-controlling interests 32 957 0.2%
Total equity 7,187 214,038 54.3%
Total liabilities and equity 13,234 394,099 100.0%
 
 
 
 
 
 
           
Note：New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2017 exchange rate of NT $29.78 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
December 31, 2017 December 31, 2016 Chg. December 31, 2017 September 30, 2017 Chg.
US$ NT$ US$ NT$ % US$ NT$ US$ NT$ %
Net operating revenues 1,230 36,631 1,286 38,306 (4.4%) 1,230 36,631 1,266 37,698 (2.8%)
Operating costs (1,019) (30,333) (992) (29,547) 2.7% (1,019) (30,333) (1,045) (31,106) (2.5%)
Gross profit 211 6,298 294 8,759 (28.1%) 211 6,298 221 6,592 (4.5%)
17.2% 17.2% 22.9% 22.9% 17.2% 17.2% 17.5% 17.5%
Operating expenses
- Sales and marketing expenses (31) (944) (43) (1,282) (26.4%) (31) (944) (36) (1,070) (11.8%)
- General and administrative expenses (39) (1,164) (51) (1,521) (23.5%) (39) (1,164) (33) (991) 17.5%
- Research and development expenses (104) (3,090) (129) (3,824) (19.2%) (104) (3,090) (112) (3,343) (7.6%)
Subtotal (174) (5,198) (223) (6,627) (21.6%) (174) (5,198) (181) (5,404) (3.8%)
Net other operating income and expenses 27 801 5 144 456.3% 27 801 15 441 81.6%
Operating income 64 1,901 76 2,276 (16.5%) 64 1,901 55 1,629 16.7%
5.2% 5.2% 5.9% 5.9% 5.2% 5.2% 4.3% 4.3%
 
Net non-operating income and expenses (5) (152) (40) (1,210) (87.4%) (5) (152) 41 1,236 -
Income from continuing operations before

income tax

59 1,749 36 1,066 64.1% 59 1,749 96 2,865 (39.0%)
4.8% 4.8% 2.8% 2.8% 4.8% 4.8% 7.6% 7.6%
 
Income tax expense (19) (556) (21) (617) (9.9%) (19) (556) (13) (401) 38.7%
Net income 40 1,193 15 449 165.7% 40 1,193 83 2,464 (51.6%)
3.3% 3.3% 1.2% 1.2% 3.3% 3.3% 6.5% 6.5%
 
Other comprehensive income (loss) (46) (1,366) (20) (591) 131.1% (46) (1,366) (36) (1,068) 27.9%
 
Total comprehensive income (loss) (6) (173) (5) (142) 21.8% (6) (173) 47 1,396 -
 
Net income attributable to:
　　Stockholders of the parent 59 1,771 86 2,548 (30.5%) 59 1,771 117 3,473 (49.0%)
　　Non-controlling interests (19) (578) (71) (2,099) (72.5%) (19) (578) (34) (1,009) (42.7%)
 
Comprehensive income (loss) attributable to:
　　Stockholders of the parent 14 416 64 1,902 (78.1%) 14 416 81 2,402 (82.7%)
　　Non-controlling interests (20) (589) (69) (2,044) (71.2%) (20) (589) (34) (1,006) (41.5%)
 
Earnings per share-basic 0.005 0.15 0.007 0.21 0.005 0.15 0.009 0.28
Earnings per ADS (2) 0.025 0.75 0.035 1.05 0.025 0.75 0.047 1.40
Weighted average number of shares
outstanding (in millions) 12,208 12,208 12,208 12,208
 
                                                           
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2017 exchange rate of NT $29.78 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, 2017 December 31, 2017
US$ NT$ % US$ NT$ %
Net operating revenues 1,230 36,631 100.0% 5,013 149,285 100.0%
Operating costs (1,019) (30,333) (82.8%) (4,104) (122,227) (81.9%)
Gross profit 211 6,298 17.2% 909 27,058 18.1%
 
 
Operating expenses
- Sales and marketing expenses (31) (944) (2.6%) (142) (4,234) (2.8%)
- General and administrative expenses (39) (1,164) (3.2%) (143) (4,240) (2.8%)
- Research and development expenses (104) (3,090) (8.4%) (459) (13,669) (9.2%)
Subtotal (174) (5,198) (14.2%) (744) (22,143) (14.8%)
Net other operating income and expenses 27 801 2.2% 56 1,653 1.1%
Operating income 64 1,901 5.2% 221 6,568 4.4%
 
Net non-operating income and expenses (5) (152) (0.4%) 41 1,230 0.8%
Income from continuing operations before

income tax

59 1,749 4.8% 262 7,798 5.2%
 
 
Income tax expense (19) (556) (1.5%) (39) (1,167) (0.8%)
Net income 40 1,193 3.3% 223 6,631 4.4%
 
Other comprehensive income (loss) (46) (1,366) (3.8%) (136) (4,034) (2.7%)
 
Total comprehensive income (loss) (6) (173) (0.5%) 87 2,597 1.7%
 
Net income attributable to:
　　Stockholders of the parent 59 1,771 4.8% 323 9,629 6.5%
　　Non-controlling interests (19) (578) (1.5%) (100) (2,998) (2.1%)
 
Comprehensive income (loss) attributable to:
　　Stockholders of the parent 14 416 1.1% 192 5,706 3.8%
　　Non-controlling interests (20) (589) (1.6%) (105) (3,109) (2.1%)
 
Earnings per share-basic 0.005 0.15 0.027 0.79
Earnings per ADS (2) 0.025 0.75 0.133 3.95
 
Weighted average number of shares

outstanding (in millions)

12,208 12,208
                                   
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2017 exchange rate of NT $29.78 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, 2017
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
 
US$ NT$
Cash flows from operating activities :
Net income before tax 262 7,798
Depreciation & Amortization 1,783 53,099
Exchange gain on financial assets and liabilities (82) (2,432)
Changes in prepayments (68) (2,014)
Changes in other current assets (80) (2,384)
Changes in assets, liabilities and others 6 174
Income tax paid (59) (1,767)
Net cash provided by operating activities 1,762 52,474
 
Cash flows from investing activities :
Proceeds from disposal of available-for-sale financial assets 73 2,160
Proceeds from capital reduction and liquidation of investments 71 2,102
Acquisition of property, plant and equipment (1,485) (44,236)
Acquisition of intangible assets (43) (1,284)
Others 195 5,842
Net cash used in investing activities (1,189) (35,416)
 
Cash flows from financing activities :
Increase in short-term loans 197 5,879
Proceeds from bonds issued 460 13,700
Redemption of bonds (252) (7,500)
Proceeds from long-term loans 403 12,001
Repayments of long-term loans (255) (7,603)
Cash dividends (205) (6,103)
Acquisition of subsidiaries (44) (1,309)
Others 4 97
Net cash provided by financing activities 308 9,162
 
Effect of exchange rate changes on cash and cash equivalents (71) (2,124)
Net Increase in cash and cash equivalents 810 24,096
 
Cash and cash equivalents at beginning of period 1,933 57,579
 
Cash and cash equivalents at end of period 2,743 81,675
 
       
Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2017 exchange rate of NT $29.78 per U.S. Dollar.
 


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