Customer demand stabilized, while UMC will continue with R&D efforts to maintain long-term competitiveness
TAIPEI, Taiwan, Feb. 10 /PRNewswire-Asia-FirstCall/ --
Fourth Quarter 2008 Overview (Note 1):
-- Revenue decreased 25.1% sequentially to NT$18.54 billion (US$566
million)
-- Gross profit margin of 10.2%, operating margin of -6.3%
-- Net loss of NT$23.51 billion (US$717 million)
-- Net cash inflow of NT$10.93 billion, with cash & cash eq. of NT$36.12
billion at Q4 end
-- Loss per share of NT$1.81; Loss per ADS of US$0.276
Note 1: Unless otherwise stated, all financial figures discussed in this
announcement are prepared in accordance with ROC GAAP, which differ in
some material respects from generally accepted accounting principles in
the United States. They are un-audited, unconsolidated, and represent
comparisons among the three-month period ending December 31, 2008, the
three-month period ending September 30, 2008, and the equivalent three-
month period that ended December 31, 2007. For all 4Q08 results, New
Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the
December 31, 2008 exchange rate of NT$32.77 per U.S. Dollar.
United Microelectronics Corporation (NYSE: UMC) (TSE: 2303) ("UMC" or "the Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the fourth quarter of 2008.
Dr. Shih-Wei Sun, CEO of UMC said, "The global economic recession in 4Q08 also impacted UMC, characterized by a sharp drop in customer demand during the quarter. For the quarter, wafer shipments dropped to 567 thousand 8-inch equivalent wafers. Customers still remain conservative about end market demand and are strictly controlling their purchase orders and inventory levels. However, UMC's internal indicators have shown signs that the demand drop may have bottomed out, and we are closely watching for signs of recovery. Although it is difficult to predict upcoming industry conditions, UMC R&D for advanced technologies remains on schedule as originally planned. Many customers are adopting our 40/45nm technologies with customer products currently in pilot production using low-power and high-performance logic processes. In addition, we have already proven high-k/metal-gate (HK/MG) technology with yielding 45nm SRAM test products. This is an important milestone for UMC's HK/MG technology. We are also an industry leader in 28nm, having independently developed the foundry industry's first fully functional 28nm SRAM chip. These technology breakthroughs will further enhance our long-term competitiveness."
Mr. Chitung Liu, CFO of UMC said, "UMC always follows financial accounting standards strictly, and we hope that our financial report can timely reflect the company's overall financial status. UMC had net non-operating losses of NT$21.78 billion in 4Q08, separated into three main parts: (1) under the impact of the global financial crisis, we recognized investment losses of NT$12.32 billion and other-than-temporary losses on financial assets of NT$2.82 billion pursuant to ROC GAAP SFAS No. 5 and SFAS No. 34, respectively; (2) the impairment losses for goodwill and idle assets totaling NT$4.07 billion were recognized pursuant to SFAS No. 35; (3) the loss on decline in market value of inventories, NT$2.68 billion, was recognized pursuant to SFAS No. 10. However, UMC had net cash inflow of NT$10.93 billion during 4Q, since all of the aforementioned non-operating losses were non-cash charges."
Dr. Sun continued, "In the second half of 2008, UMC took solid steps towards enhancing UMC operations, including improving production efficiency, implementing cost rationalization policies, and streamlining human resource allocation. Through cost-control measures, we have lowered our operating breakeven point to approximately 60% utilization rate. Going forward, we will continue to enhance execution and monitor results to look for areas that can be further improved upon. UMC has independent R&D and solid manufacturing capabilities backed by a healthy financial structure, and supported through sufficient operating capital. We will continue to strengthen the development of our advanced technologies, and follow our Customer-Driven Foundry Solution strategy to provide customized solutions to our global foundry customers."
Summary of Operating Results
Operating Results
QoQ% YoY%
(Amount: NT$ million) 4Q08 3Q08 change 4Q07 change
Revenue 18,541 24,748 (25.1) 27,621 (32.9)
Gross Profit 1,899 4,368 (56.5) 5,649 (66.4)
Operating Expenses (3,073) (3,421) (10.2) (4,323) (28.9)
Operating Income (Loss) (1,174) 947 -- 1,326 --
Non-op. Income
(Expenses) (21,784) (2,105) 934.9 1,097 --
Net Income (Loss) (23,510) (1,413) 1563.8 1,359 --
EPS (NT$ per share) (1.81) (0.11) -- 0.14 --
(US$ per ADS) (0.276) (0.017) -- 0.021 --
Revenue decreased 25.1% QoQ to NT$18.54 billion, from NT$24.75 billion in 3Q08, and decreased 32.9% YoY, from NT$27.62 billion in 4Q07. Weaker-than- expected wafer shipments were a key factor to the significant decrease in revenues. Gross profit was NT$1.9 billion, or 10.2% of revenue, compared to NT$4.37 billion, or 17.6% of 3Q08 revenue. Operating loss for the quarter was NT$1.17 billion, or 6.3% of revenue, compared to an operating profit of 947 million, or 3.8% of 3Q08 revenue. Net loss in 4Q08 was NT$23.51 billion, mainly due to a net non-operating loss of NT$21.78 billion.
Loss per ordinary share for the quarter was NT$1.81. Loss per ADS was US$0.276. One ADS represents five Taiwan-listed ordinary shares. The basic weighted average number of outstanding shares in 4Q08 was 12,971,740,926, compared with 13,129,987,534 shares in 3Q08 and 13,100,167,505 shares in 4Q07. The diluted weighted average number of outstanding shares was 12,971,740,926 in 4Q08, compared with 13,129,987,534 shares in 3Q08 and 13,578,655,652 shares in 4Q07. The fully diluted share count on December 31, 2008 was 13,614,857 thousand. During 4Q08, UMC retired 555,715,736 treasury shares, or 4.1% of total issued shares, acquired from the 9th, 11th, and 12th share buy-back program. UMC announced its 13th share buy-back program on December 16, 2008, with a plan to repurchase a maximum of 300,000,000 shares within the 2008/12/17~2009/02/16 period.
Detailed Financials Section
COGS & Expenses
QoQ% YoY%
(Amount: NT$ million) 4Q08 3Q08 change 4Q07 change
Revenue 18,541 24,748 (25.1) 27,621 (32.9)
CoGS (16,642) (20,380) (18.3) (21,972) (24.3)
Depreciation (7,682) (8,086) (5.0) (7,985) (3.8)
Other Mfg. Costs (8,960) (12,294) (27.1) (13,987) (35.9)
Gross Profit 1,899 4,368 (56.5) 5,649 (66.4)
Gross Margin (%) 10.2% 17.6% -- 20.5% --
Total Operating Exp. (3,073) (3,421) (10.2) (4,323) (28.9)
G&A (428) (639) (33.0) (906) (52.8)
Sales & Marketing (679) (673) 1.0 (882) (23.0)
R&D (1,966) (2,109) (6.8) (2,535) (22.4)
Operating Income (1,174) 947 -- 1,326 --
Operating Margin (%) (6.3%) 3.8% -- 4.8% --
Depreciation and amortization expenses totaled NT$9.15 billion in 4Q08, compared to NT$9.22 billion in 3Q08. Depreciation within COGS decreased by 5% to NT$7.68 billion. General & administration and R&D expenses decreased largely because of expense control activities in 4Q08. The increase on sales & marketing expenses was mainly due to increase in IP amortization. As a result, total operating expenses decreased 10.2% to NT$3.07 billion. The total R&D expense was 10.6% of revenue in 4Q08.
Non-operating Income (Expenses)
(Amount: NT$ million) 4Q08 3Q08 4Q07
Net Non-operating Income (Exp.) (21,784) (2,105) 1,097
Net Interest Income (Expense) 115 108 143
Net Investment Income (Loss) (15,465) (2,860) (1,124)
Gain on Disposal of Investment 52 611 2,025
Exchange Gain (Loss) 345 735 108
Others (6,831) (699) (55)
Net non-operating losses during 4Q08 were NT$21.78 billion. Net investment losses were NT$15.47 billion, including NT$12.32 billion of investment losses accounted for under the equity method, NT$2.82 billion of other-than-temporary impairment losses on financial assets pursuant to ROC GAAP SFAS No.34, and a NT$387 million loss from valuation of ProMos shares. Gains on the disposal of investments were NT$52 million, mainly coming from the sale of ITE shares. Other losses included NT$4.07 billion impairment loss on goodwill and idle assets pursuant to SFAS No.35, and NT$2.68 billion loss from decline in market value of inventories pursuant to SFAS No.10.
Cash Flow Summary
For the 3-Month For the 3-Month
(Amount: NT$ million) Period Ended Period Ended
Dec. 31, 2008 Sep. 30, 2008
Cash Flow from Operations 12,729 13,792
Net Income (Loss) (23,510) (1,413)
Depreciation & Amortization 9,154 9,224
Changes in working capital 4,601 865
Others 22,484 5,116
Cash Flow from Investing (2,330) (2,143)
Capital Expenditures (1,471) (1,778)
Others (859) (365)
Cash Flow from Financing 508 (12,225)
Long term loan 700 --
Cash Dividend -- (9,383)
Purchase of treasury stock (191) (2,087)
Others (1) (755)
Effect of exchange rate 23 352
Net Cash Flow 10,930 (224)
Net cash inflow was NT$10.93 billion in 4Q08. Operating cash inflow was NT$12.73 billion. Most of the non-operating losses during 4Q08 were non-cash charges; they did not have any impact on the cash flow. Free cash flow (Note 2) for 4Q08 was NT$11.26 billion. Free cash flow for entire 2008 was NT$33.35 billion. Over the next 12 months, UMC expects to repay NT$66.7 million in term loans.
Note 2: Free cash flow = Operating cash flow - Capital expenditures
Current Assets
(Amount: NT$ billion) 4Q08 3Q08 4Q07
Cash & Cash Equivalents 36.12 25.19 37.45
Notes & Accounts Receivable 7.80 14.12 13.62
Days Sales Outstanding 54 53 51
Inventory 7.77 11.76 11.33
Avg. Inventory Turnover 55 55 47
Total Current Assets 54.61 54.89 68.25
Cash and cash equivalents increased NT$10.93 billion to NT$36.12 billion.
The decrease in notes & accounts receivable and inventory primarily reflected
the downward trend of the business. Average inventory turnover remained at 55
days at the end of 4Q08.
Liabilities
(Amount: NT$ billion) 4Q08 3Q08 4Q07
Total Current Liabilities 11.43 14.64 43.06
Accounts Payable 2.05 3.84 4.80
Short-term Credit / Bonds 0.07 0.00 22.89
Others 9.31 10.80 15.37
Long-term Liabilities 8.13 7.50 7.60
Total Liabilities 23.31 25.85 54.30
Debt to Equity 13% 13% 23%
Total liabilities decreased by NT$2.54 billion to NT$23.31 billion in 4Q08. UMC's Debt to Equity ratio remained unchanged at 13%.
Analysis of Revenue (Note 3)
Revenue Breakdown by Region
Region 4Q08 3Q08 2Q08 1Q08 4Q07
North America 57% 60% 50% 58% 51%
Asia Pacific 31% 32% 35% 29% 37%
Europe 10% 6% 13% 11% 10%
Japan 2% 2% 2% 2% 2%
The percentage of revenue from the North America and Asia Pacific regions decreased to 57% and 31% in 4Q08.
Revenue Breakdown by Geometry
Geometry 4Q08 3Q08 2Q08 1Q08 4Q07
65nm 8% 7% 5% 7% 3%
90nm 27% 31% 31% 30% 23%
90nm < x <=0.13um 22% 20% 21% 21% 22%
0.13um < x <=0.18um 23% 21% 20% 22% 27%
0.18um < x <=0.35um 15% 16% 18% 14% 18%
0.5um and above 5% 5% 5% 6% 7%
The percentage of revenue from advanced 65nm business increased to 8%. The percentage of revenue from 90nm and below was 35% in 4Q08.
Revenue Breakdown by Customer Type
Customer Type 4Q08 3Q08 2Q08 1Q08 4Q07
Fabless 80% 74% 71% 70% 76%
IDM 20% 26% 29% 30% 24%
System 0% 0% 0% 0% 0%
The percentage of revenue from Fabless customers increased to 80% in 4Q08
from 74% in 3Q08.
Revenue Breakdown by Application (1)
Application 4Q08 3Q08 2Q08 1Q08 4Q07
Computer 15% 16% 17% 21% 19%
Communication 61% 59% 58% 56% 56%
Consumer 22% 23% 22% 21% 23%
Memory 1% 1% 1% 1% 1%
Others 1% 1% 2% 1% 1%
(1) Computer consists of ICs such as HDD controllers, DVD-ROM/CD-ROM
drives ICs, LCD drivers, graphic processors, and PDAs. Communication
consists of xDSL, DSP, WLAN, LAN controllers, handset components,
caller ID devices, etc. Consumer consists of ICs used for DVD players,
game consoles, digital cameras, smart cards, toys, etc. Memory
consists of DRAM, SRAM, Flash, EPROM, ROM, and EEPROM.
Revenue from the communication segment increased to 61% of total revenue in 4Q08. The percentage of revenue from the computer segment decreased to 15% due to weak demand for PC related components.
Note 3: Revenue in this section represents wafer sales.
Blended Average Selling Price Trend
The blended average selling price (ASP) increased by 1% in US dollar terms during 4Q08, due to changes in the process technology mix.
(To view ASP trend, visit:
http://www.umc.com/english/investors/4Q08_ASP_trend.asp )
Shipment and Utilization Rate (Note 4)
Wafer Shipments
4Q08 3Q08 2Q08 1Q08 4Q07
Wafer Shipments
('000 8-inch eq.) 567 883 875 807 921
Quarterly Capacity Utilization Rate
4Q08 3Q08 2Q08 1Q08 4Q07
Utilization Rate 48% 79% 85% 73% 86%
Total Capacity
('000 8-inch eq.) 1,151 1,149 1,107 1,100 1,100
Wafer shipments dropped 35.8% sequentially to 567 thousand, a decrease from 883 thousand 8-inch equivalent wafers in the previous quarter. Overall utilization rate for the quarter was 48%.
Note 4: Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
Capacity (Note 5)
Capacity for 4Q08 was 1,151 thousand 8-inch equivalent wafers. The incremental increase in capacity was due to the expansion at Fab 12A. The estimated installed capacity in 1Q09 remains unchanged at 1,151 thousand 8- inch equivalent wafers, although additional 65nm capacity will be converted from existing 90nm and 0.13um capacity.
Note 5: 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.
Annual Capacity in thousands of 8-inch wafer equivalents
FAB Geometry 2008 2007 2006 2005
(um)
Fab 6A 6" 3.5 - 0.45 328 328 328 344
Fab 8AB 8" 0.5 - 0.25 816 816 816 816
Fab 8C 8" 0.35 - 0.15 411 400 400 401
Fab 8D 8" 0.18 - 0.09 263 260 252 274
Fab 8E 8" 0.5 - 0.18 408 408 406 404
Fab 8F 8" 0.25 - 0.15 372 372 372 378
Fab 8S(1) 8" 0.25 - 0.15 291 276 276 278
Fab 12A 12" 0.18 -0.065 876 847 754 597
Fab 12i(2)12" 0.13 -0.065 742 601 413 363
Total (3) 4,507 4,308 4,017 3,855
YoY Growth Rate 5% 7% 4% 22%
Quarterly Capacity in thousands of 8-inch wafer equivalents
FAB 1Q09E 4Q08 3Q08 2Q08
Fab 6A 82 82 82 82
Fab 8AB 204 204 204 204
Fab 8C 111 111 108 101
Fab 8D 60 60 63 66
Fab 8E 102 102 102 102
Fab 8F 93 93 93 93
Fab 8S 75 75 75 72
Fab 12A 222 222 220 218
Fab 12i 202 202 202 169
Total(3) 1,151 1,151 1,149 1,107
(1) Former fab of SiSMC, which was acquired from Silicon Integrated
Systems in July 2004.
(2) Former fab of UMCi, a UMC wholly owned subsidiary in December 2004
that was merged into UMC in April 2005
(3) One 6-inch wafer is converted into 0.5625(6sq/8sq) 8-inch equivalent
wafer; one 12-inch wafer is converted into 2.25(12sq/8sq) 8-inch
equivalent wafers.
CAPEX
UMC Capital Expenditure by Year -- in US$ billion
Year 2008 2007 2006 2005 2004 2003
CAPEX $0.35 $0.9 $1.0 $0.7(1) $1.5 $0.4
(1) 2005 CAPEX contained UMC 2005 full year CAPEX and UMCi CAPEX during
1Q05.
2008 CAPEX
8" fab 12" fab Total
UMC 17% 83% US$349 million
2009 CAPEX Plan
8" fab 12" fab Total
UMC 7% 93% Not to exceed US$400 million
The total capital expenditure for 2008 was US$349 million, which is lower than the original capex plan of US$400-500 million. Diminished chip demand was the primary reason for the 2008 CAPEX cut. The capital expenditure budget for 2009 is not expected to exceed US$400 million.
Brief Summary of Full Year 2008 Results
Operating Results
YoY%
(Amount: NT$ million) 2008 2007 change
Revenue 92,530 106,771 (13.3)
Gross Profit 15,638 22,506 (30.5)
Operating Expenses (13,334) (15,701) (15.1)
Operating Income 2,304 6,805 (66.1)
Non-op. Income (Expenses) (23,698) 12,762 --
Income Tax Expense (926) (2,605) (64.5)
Net Income(Loss) (22,320) 16,962 --
EPS (NT$ per share) (1.70) 1.03 --
(US$ per ADS) (0.259) 0.157 --
-- Revenue decreased 13.3% YoY to NT$92.53 billion, from NT$106.77 billion
in 2007
-- Gross profit margin was 16.9%, compared to 21.1% in 2007
-- Operating profit margin was 2.5%, compared to 6.4% in 2007
-- Net loss was NT$22.32 billion for 2008
-- Net loss per share was NT$1.70, or net loss per ADS was US$0.259 for
2008. This compared to EPS of NT$1.03 or EPADS of US$0.157 for 2007
-- The percentage of revenue from 65nm sales was 7% in 2008; the
percentage of revenue from 90nm and below sales increased to 37%, from
23% in 2007
Annual Sales Breakdown in Revenue
Region 2008 2007 Technology 2008 2007
North America 56% 48% 65nm 7% 2%
Asia Pacific 32% 40% 90nm 30% 21%
Europe 10% 9% 90nm < x <=0.13um 21% 22%
Japan 2% 3% 0.13um < x <=0.18um 21% 27%
0.18um < x <=0.35um 16% 21%
0.5um and above 5% 7%
Application 2008 2007 Customer Type 2008 2007
Computer 18% 18% Fabless 73% 75%
Communication 58% 56% IDM 27% 25%
Consumer 22% 24% System 0% 0%
Memory 1% 1%
Others 1% 1%
Recent Developments / Announcements
Dec. 30, 2008 UMC's CSR Report Wins Taiwan Corporate Sustainability
Report Honors
Dec. 09, 2008 UMC Revised 4Q08 Guidance and Reports Sales for November
2008
Nov. 25, 2008 UMC Advances its High-k/Metal-Gate Process Solution
Nov. 18, 2008 Actel Leverages UMC Foundry Solutions for 65nm eFlash
FPGAs
Feb. 9, 2009 UMC 12i Wins MediaTek's 2008 Best Fab Award
Please visit UMC's website http://www.umc.com/english/news/index.asp for further details regarding the above announcements.
First Quarter of 2009 Outlook & Guidance
Quarter-over-quarter Guidance:
-- Wafer shipments: to decrease by approximately 40-42% points
-- Wafer ASP in NT$: to decrease by approximately 3-5% points
-- Sustain positive cash flow generation
-- Weakness across the three major applications
-- 2009 capex budget: will not exceed US$400 million
Conference Call / Webcast Announcement
Tuesday, February 10, 2009
Time: 9:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)
Dial-in numbers and Access Codes:
USA Toll Free: 1866 519 4004
UK Toll Free: 0808 234 6646
Singapore and Other Areas: +65 6735 7955
Access Code: UMC
A live webcast and replay of the 4Q08 results announcement will be available at http://www.umc.com under the "Investor Relations \ Investor Events" section.
About UMC
UMC (NYSE: UMC) (TSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing services for applications spanning every major sector of the IC industry. UMC's customer-driven foundry solutions allow chip designers to leverage the strength of the company's leading-edge processes, which include production proven 65nm, 45/40nm, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. The company employs approximately 12,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at http://www.umc.com .
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 annual report on Form 20-F.
The financial statements included in this release are unaudited and unconsolidated, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between ROC GAAP and US GAAP.
The forward-looking statements in this release reflect the current belief of UMC as of the date of this release, 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.
-- FINANCIAL TABLES TO FOLLOW --
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Balance Sheet
As of Dec 31, 2008
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Dec 31, 2008
US$ NT$ %
ASSETS
Current Assets
Cash and Cash Equivalents 1,102 36,124 17.4%
Financial assets at fair value
through profit or loss, current 53 1,741 0.8%
Notes & Accounts Receivable 238 7,795 3.8%
Inventories 237 7,770 3.7%
Other Current Assets 37 1,185 0.6%
Total Current Assets 1,667 54,615 26.3%
Non-Current Assets
Funds and Long-term Investments 1,424 46,657 22.4%
Property, Plant and Equipment 3,065 100,443 48.3%
Other Assets 191 6,273 3.0%
Total Non-Current Assets 4,680 153,373 73.7%
TOTAL ASSETS 6,347 207,988 100.0%
LIABILITIES
Current Liabilities
Financial liabilities at fair
value through profit or loss,
current 1 33 0.0%
Payables 341 11,167 5.4%
Current Portion of Long-term
Liabilities 2 67 0.0%
Other Current Liabilities 5 162 0.1%
Total Current Liabilities 349 11,429 5.5%
Non-Current Liabilities
Bonds Payable 229 7,497 3.6%
Long-term Loans 19 633 0.3%
Other Liabilities 114 3,753 1.8%
Total Non-Current Liabilities 362 11,883 5.7%
TOTAL LIABILITIES 711 23,312 11.2%
STOCKHOLDERS' EQUITY
Capital Stock 3,964 129,878 62.5%
Additional Paid-in Capital 1,775 58,150 28.0%
Retained Earnings, Unrealized Gain
on Financial Assets and
Translation Adjustment (99) (3,232) (1.6%)
Treasury Stock (4) (120) (0.1%)
TOTAL STOCKHOLDERS' EQUITY 5,636 184,676 88.8%
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 6,347 207,988 100.0%
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
December 31, 2008 exchange rate of NT $32.77 per U.S. Dollar.
All figures are in ROC GAAP.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison
Three-Month Period Ended
Dec 31, 2008 Dec 31, 2007 %
US$ NT$ US$ NT$ Chg.
Net Sales 566 18,541 843 27,621 (32.9%)
Cost of Goods Sold (508) (16,642) (671) (21,972) (24.3%)
Net Gross Profit 58 1,899 172 5,649 (66.4%)
10.2% 10.2% 20.5% 20.5% --
Operating Expenses
-- Sales & Marketing 21 679 27 882 (23.1%)
-- General & Administrative 13 428 28 906 (52.8%)
-- Research & Development 60 1,966 77 2,535 (22.4%)
94 3,073 132 4,323 (28.9%)
Operating Income (Loss) (36) (1,174) 40 1,326 (188.5%)
(6.3%) (6.3%) 4.8% 4.8% --
Net Non-Operating Income
(Expenses) (664) (21,784) 34 1,097 (2,085.8%)
Income (Loss) from continuing
operations before income tax (700) (22,958) 74 2,423 (1,047.5%)
(123.8%) (123.8%) 8.8% 8.8% --
Income Tax (Expense) Benefit (17) (552) (33) (1,064) (48.1%)
Net Income (Loss) (717) (23,510) 41 1,359 (1,829.9%)
(126.8%) (126.8%) 4.9% 4.9% --
Earnings per Share (0.055) (1.81) 0.004 0.14 --
Earnings per ADS (2) (0.276) (9.05) 0.021 0.70 --
Weighted Average Number of
Shares Outstanding
(in millions) -- 12,972 -- 13,100 --
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement (CONTINUED)
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Quarter over Quarter Comparison
Three-Month Period Ended
Dec 31, 2008 Sep 30, 2008 %
US$ NT$ US$ NT$ Chg.
Net Sales 566 18,541 755 24,748 (25.1%)
Cost of Goods Sold (508) (16,642) (622) (20,380) (18.3%)
Net Gross Profit 58 1,899 133 4,368 (56.5%)
10.2% 10.2% 17.6% 17.6% --
Operating Expenses
-- Sales & Marketing 21 679 21 673 0.8%
-- General & Administrative 13 428 19 639 (33.1%)
-- Research & Development 60 1,966 64 2,109 (6.8%)
94 3,073 104 3,421 (10.2%)
Operating Income (Loss) (36) (1,174) 29 947 (224.0%)
(6.3%) (6.3%) 3.8% 3.8% --
Net Non-Operating Income
(Expenses) (664) (21,784) (64) (2,105) 934.9%
Income (Loss) from continuing
operations before income tax (700) (22,958) (35) (1,158) 1,882.6%
(123.8%) (123.8%) (4.7%) (4.7%) --
Income Tax (Expense) Benefit (17) (552) (8) (255) 116.5%
Net Income (Loss) (717) (23,510) (43) (1,413) 1,563.8%
(126.8%) (126.8%) (5.7%) (5.7%) --
Earnings per Share (0.055) (1.81) (0.003) (0.11) --
Earnings per ADS (2) (0.276) (9.05) (0.017) (0.55) --
Weighted Average Number of
Shares Outstanding
(in millions) -- 12,972 -- 13,130 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
December 31, 2008 exchange rate of NT $32.77 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month Period Ended For the year Ended
Dec 31, 2008 Dec 31, 2008
US$ NT$ % US$ NT$ %
Net Sales 566 18,541 100.0% 2,824 92,530 100.0%
Cost of Goods Sold (508) (16,642) (89.8%) (2,347) (76,892) (83.1%)
Net Gross Profit 58 1,899 10.2% 477 15,638 16.9%
Operating Expenses
-- Sales & Marketing 21 679 3.6% 82 2,688 2.9%
-- General &
Administrative 13 428 2.3% 75 2,447 2.6%
-- Research &
Development 60 1,966 10.6% 250 8,199 8.9%
94 3,073 16.5% 407 13,334 14.4%
Operating Income (Loss) (36) (1,174) (6.3%) 70 2,304 2.5%
Net Non-Operating
Income (Expenses) (664) (21,784) (117.5%) (723) (23,698) (25.6%)
Income (Loss) from
continuing operations
before income tax (700) (22,958) (123.8%) (653) (21,394) (23.1%)
Income Tax (Expense)
Benefit (17) (552) (3.0%) (28) (926) (1.0%)
Net Income (Loss) (717) (23,510) (126.8%) (681) (22,320) (24.1%)
Earnings per Share (0.055) (1.81) -- (0.052) (1.70) --
Earnings per ADS (2) (0.276) (9.05) -- (0.259) (8.50) --
Weighted Average Number
of Shares Outstanding
(in millions) -- 12,972 -- -- 13,111 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
December 31, 2008 exchange rate of NT $32.77 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Statement of Cash Flows
For The Twelve Months Ended Dec. 31, 2008
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
Cash flows from operating activities:
Net Income (681) (22,320)
Depreciation & Amortization 1,141 37,387
Loss on decline in market value
and obsolescence of inventories 94 3,082
Cash dividends received under the
equity method 15 493
Investment loss accounted for
under the equity method 377 12,374
Loss on valuation of financial
assets and liabilities 105 3,448
Impairment loss 311 10,192
Gain on disposal of investments (56) (1,839)
Gain on disposal of property,
plant and equipment (1) (47)
Exchange gain on financial assets
and liabilities (1) (33)
Exchange gain on long-term
liabilities (5) (179)
Amortization of bond discounts 0 8
Amortization of deferred income (5) (173)
Change in assets, liabilities and
others 72 2,382
Net cash provided by operating
activities 1,366 44,775
Cash flows from investing activities:
Proceeds from disposal of
available-for-sales financial
assets 63 2,075
Acquisition of financial assets
measured at cost (12) (416)
Proceeds from disposal of
financial assets measured at
cost 0 8
Acquisition of long-term
investments accounted for under
the equity method (66) (2,176)
Proceeds from disposal of long-
term investments accounted for
the equity method 0 0
Proceeds from liquidation of
long-term investments 6 207
Acquisition of property, plant
and equipment (349) (11,422)
Proceeds from disposal of
property, plant and equipment 5 164
Increase in deferred charges (23) (767)
Decrease in other assets -- others 0 3
Net cash used in investing activities (376) (12,324)
Cash flows from financing activities:
Proceeds from long-term Loans 21 700
Redemption of bonds (693) (22,717)
Cash dividends (286) (9,383)
Payment of employee bonus (9) (286)
Remuneration paid to directors
and supervisors (0) (12)
Purchase of treasury stock (70) (2,278)
Decrease in deposits-in (0) (7)
Net cash used in financing activities (1,037) (33,983)
Effect of exchange rate changes on
cash and cash equivalents 6 203
Net decrease in cash and cash
equivalents (41) (1,329)
Cash and cash equivalents at
beginning of period 1,143 37,453
Cash and cash equivalents at end of
period 1,102 36,124
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
December 31, 2008 exchange rate of NT $32.77 per U.S. Dollar.
All figures are in ROC GAAP.
Contacts:
Bowen Huang / Tien Yu Tseng
UMC, Investor Relations
Tel: +886-2-2700-6999 ext. 6957
Email: bowen_huang@umc.com
tien_yu_tseng@umc.com
Web site:
http://www.umc.com/
http://www.umc.com/english/investors/4Q08_ASP_trend.asp/