omniture

SMIC Reports 2011 Second Quarter Results

All currency figures stated in this report are in US Dollars unless stated otherwise.

The financial statement amounts in this report are determined in accordance with US GAAP.


SHANGHAI, Aug. 10, 2011 /PRNewswire-Asia/ -- Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 981) ("SMIC" or the "Company"), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended June 30, 2011.  

Second Quarter 2011 Highlights:

  • Revenue down by 4.9% to $352.4 million in 2Q11 from $370.6 million in 1Q11 and down by 5.9% compared to 2Q10.
  • Gross margin was 14.3% in 2Q11 compared to 18.6% in 1Q11 primarily due to decreased wafer starts from weakened demand in the third quarter.
  • Net cash flow from operations increased to $79.4 million in 2Q11 from $73.4 million in 1Q11.
  • Loss attributable to holders of ordinary shares was $3.8 million in 2Q11, compared to income of $10.2 million in 1Q11.
  • Diluted EPS was $(0.0066) per ADS.

Third Quarter 2011 Guidance:

The following statements are forward looking statements which are based on current expectations and which involve risks and uncertainties, some of which are set forth under "Safe Harbor Statements" below.

  • Revenue is expected to decline between -14% to -17%.
  • Gross margin is expected to range from 0% to 3%.
  • Operating expenses excluding foreign exchange differences are expected to range from $86 million to $89 million.

Gary Tseng, Chief Financial Officer commented, "Highlighting our second quarter performance, revenue decreased 4.9% quarter-over-quarter to $352 million. This decline was in part due to our customer transition to 65nm and 45nm and largely due to unexpected changes in some of our customers' programs—including some customers skipping 65nm to work on 45nm and one customer abandoning their lower-end baseband business. Despite these changes, we continue to have new tape outs for 65nm and customers committed to working with us on their 45/40nm products, which will likely contribute meaningful revenue next year.

"Looking into the third quarter, the overall demand from both international and domestic customers is weaker than expected due to relatively soft end-market consumption and high inventory, in addition to sudden customer product changes. The combination of these factors will pose adverse impacts to our revenue for the third quarter of 2011. Our visibility into fourth quarter demand is currently limited, and the overall global economic outlook also contributes to uncertainty. We currently do not see any particular strengths from customer demand for back-to-school and holiday seasons, so we currently remain cautious on our overall second half 2011 outlook."


Conference Call / Webcast Announcement

Date: Thursday, August 11, 2011

Time: 8:30 a.m. Shanghai time

Dial-in numbers and pass code:

Dial in

 

1-800-510-0219

 

(Pass code: SMIC)

 

 

International

 

1-617-614-3451

 

(Pass code: SMIC)

 

 

HK

 

852-3002-1672

 

(Pass code: SMIC)  

 

 

 

 

 


A live webcast of the 2011 second quarter announcement will be available at http://www.smics.com/ under the "Investor Relations" section, or at URL: http://phx.corporate-ir.net/playerlink.zhtml?c=176474&s=wm&e=4153540

An archived version of the webcast, along with an electronic copy of this news release will be available on the SMIC website for a period of 12 months following the webcast.

About SMIC

Semiconductor Manufacturing International Corporation ("SMIC"; NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China, providing integrated circuit (IC) foundry and technology services at 0.35-micron to 45/40-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and three 200mm wafer fabs in its Shanghai mega-fab, two 300mm wafer fabs in its Beijing mega-fab, a 200mm wafer fab in Tianjin, and a 200mm fab under construction in Shenzhen. SMIC also has customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. In addition, SMIC manages and operates a 300mm wafer fab in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation.

For more information, please visit http://www.smics.com/

Safe Harbor Statements

(Under the Private Securities Litigation Reform Act of 1995)

This press release contains, in addition to historical information, "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements under "Third Quarter 2011 Guidance" are based on SMIC's current assumptions, expectations and projections about future events. SMIC uses words like "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates reflecting the best judgment of SMIC's senior management and involve significant risks, both known and unknown, uncertainties and other factors that may cause SMIC's actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements including, among others, risks associated with cyclicality and market conditions in the semiconductor industry, the downturn in the global economy and the impact on China's economy, intense competition, timely wafer acceptance by SMIC's customers, timely introduction of new technologies, SMIC's ability to capture growth opportunities in China, supply and demand for semiconductor foundry services, industry overcapacity, shortages in equipment, components and raw materials, orders or judgments from pending litigation, availability of manufacturing capacity and financial stability in end markets.

Investors should consider the information contained in SMIC's filings with the U.S. Securities and Exchange Commission (SEC), including its annual report on 20-F filed with the SEC on June 28, 2011, especially in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections, and such other documents that SMIC may file with the SEC or The Hong Kong Stock Exchange Limited ("SEHK") from time to time, including on Form 6-K. Other unknown or unpredictable factors also could have material adverse effects on SMIC's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Except as required by law, SMIC undertakes no obligation and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise.


Contact:


 

 

Investor Relations

 

 

+86-21-3861-0000 ext. 12804

 

 

ir@smics.com

 

 

 

 

 


Summary of Second Quarter 2011 Operating Result

Amounts in US$ thousands, except for EPS and operating data


 

 

 

2Q11

 

1Q11

 

QoQ

 

2Q10

 

YoY

 

 

Sales, net

 

352,389

 

370,559

 

-4.9%

 

374,423

 

-5.9%

 

 

Cost of sales

 

302,116

 

301,782

 

0.1%

 

314,547

 

-4.0%

 

 

Gross profit

 

50,273

 

68,777

 

-26.9%

 

59,876

 

-16.1%

 

 

Operating expenses

 

50,382

 

76,623

 

-34.2%

 

70,363

 

-28.4%

 

 

Loss from operations

 

(109)

 

(7,846)

 

-98.6%

 

(10,487)

 

-99.0%

 

 

Other income, net

 

531

 

2,702

 

-80.4%

 

101,779

 

-99.5%

 

 

Income tax (expenses) benefit

 

(5,121)

 

128

 

-

 

6,466

 

-  -

 

 

Net income (loss) after income taxes

 

(4,699)

 

(5,016)

 

-6.3%

 

97,758

 

-

 

 

Gain from equity investment

 

1,078

 

1,016

 

6.1%

 

141

 

664.5%

 

 

Income (loss) from discontinued operations net of tax effect(3)

 

-

 

14,742

 

-

 

(1,600)

 

-

 

 

 

 

 

 

 

 

 

Net income (loss)

 

(3,621)

 

10,742

 

-

 

96,299

 

-

 

 

 

 

 

 

 

 

 

Accretion of interest to noncontrolling interest

 

(151)

 

(508)

 

-70.3%

 

(262)

 

-42.4%

 

 

 

 

 

 

 

 

 

Income (loss) attributable to Semiconductor Manufacturing
International Corporation

 

(3,772)

 

10,234

 

 

96,037

 

-

 

 

 

 

 

 

 

 

 

Gross margin

 

14.3%

 

18.6%

 

 

16.0%

 

 

 

Operating margin

 

-0.03%

 

-2.1%

 

 

-2.8%

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per ordinary share (basic)(1)

 

(0.00)

 

0.00

 

 

0.00

 

 

 

Earnings (loss) per ADS (basic)

 

(0.01)

 

0.02

 

 

0.21

 

 

 

Earnings (loss) per ordinary share (diluted)(1)

 

(0.00)

 

0.00

 

 

0.00

 

 

 

Earnings (loss) per ADS (diluted)

 

(0.01)

 

0.02

 

 

0.20

 

 

 

 

 

 

 

 

 

 

Wafers shipped (in 8" wafers)(2)

 

451,552

 

471,231

 

-4.2%

 

496,766

 

-9.1%

 

 

 

 

 

 

 

 

 

Capacity utilization

 

74.7%

 

72.2%

 

 

94.3%

 

 

 

 

 

 

 

 

 



Note:

 

 

(1) Based on weighted average ordinary shares of 28.501 million (basic) and 28.501 million (diluted) in 2Q11, 27,371 million (basic) and 27,371 million (diluted) in 1Q11 and 22,480 million (basic) and 24,534 million (diluted) in 2Q10.

 

 

(2) Including copper interconnects

 

 

(3) On March 1, 2011, the Company deconsolidated Semiconductor Manufacturing International (AT) Corporation ("AT") as its majority ownership interest was reduced to 10%. Both the results of operations of AT prior to deconsolidation and a gain on deconsolidation were reported as income (loss) from discontinued operations.

 

 

 


  • Revenue decreased to $352.4 million in 2Q11, down 4.9% QoQ from $370.6 million in 1Q11 due to a 4.2% decrease in wafer shipments.
  • Cost of sales increased to $302.1 million in 2Q11, increase 0.1% QoQ from $301.8 million in 1Q11 primarily due to increase in other manufacturing costs.
  • Gross profit of $50.3 million in 2Q11, compared to a gross profit of $68.8 million in 1Q11 and gross profit of $59.9 million in 2Q10.
  • Gross margin was 14.3% in 2Q11 down from 18.6% in 1Q11 primarily due to decreased wafer starts from weakened demand in the third quarter.
  • R&D expenses increased to $51.5 million in 2Q11, up 3.9% QoQ from $49.6 million in 1Q11 due to an increase in engineering experiment expenses.
  • G&A expense was -$8.9 million in 2Q11. Comparing with $19.4 million in 1Q11, the fluctuation was mainly due to a recovery from bad debt and decrease in personnel related expense.
  • Selling & marketing expenses increased to $8.1 million in 2Q11, up 5.2% QoQ from $7.7 million in 1Q11 primarily due to an increase in selling activities.

Analysis of Revenues


 

 

Sales Analysis

 

 

 

 

 

By Application

 

2Q11

 

1Q11

 

2Q10

 

 

Computer

 

4.0%

 

3.3%

 

3.4%

 

 

Communications

 

37.7%

 

44.5%

 

47.8%

 

 

Consumer

 

49.4%

 

42.5%

 

41.3%

 

 

Others

 

8.9%

 

9.7%

 

7.5%

 

 

By Service Type

 

2Q11

 

1Q11

 

2Q10

 

 

Logic(1)

 

92.6%

 

91.3%

 

92.2%

 

 

Memory

 

0.0%

 

0.0%

 

1.4%

 

 

Mask Making, testing, others

 

7.4%

 

8.7%

 

6.4%

 

 

By Customer Type

 

2Q11

 

1Q11

 

2Q10

 

 

Fabless semiconductor companies

 

77.9%

 

80.4%

 

66.5%

 

 

Integrated device manufacturers (IDM)

 

16.8%

 

13.5%

 

16.1%

 

 

System companies and others

 

5.3%

 

6.1%

 

17.4%

 

 

By Geography

 

2Q11

 

1Q11

 

2Q10

 

 

North America

 

57.6%

 

51.3%

 

52.8%

 

 

China(2)

 

30.1%

 

35.6%

 

28.1%

 

 

Eurasia(3)

 

12.3%

 

13.1%

 

19.1%

 

 

Wafer Revenue Analysis

 

 

 

 

 

By Technology (logic, memory & copper interconnect only)

 

2Q11

 

1Q11

 

2Q10

 

 

0.065um

 

20.7%

 

13.3%

 

3.7%

 

 

0.09um

 

7.7%

 

12.3%

 

19.9%

 

 

0.13um

 

22.8%

 

24.1%

 

31.9%

 

 

0.15um

 

2.5%

 

1.3%

 

1.8%

 

 

0.18um

 

31.5%

 

31.6%

 

26.9%

 

 

0.25um

 

0.4%

 

0.4%

 

0.6%

 

 

0.35um

 

14.4%

 

17.0%

 

15.2%

 

 

Note:

 

 

(1) Including 0.13um copper interconnects

 

 

(2) Including Hong Kong

 

 

(3) Excluding China

 

 

 

 

 

 



Capacity*


 

 

Fab / (Wafer Size)

 

2Q11

 

1Q11

 

 

Shanghai Mega Fab (8")

 

90,000

 

90,000

 

 

Beijing Mega Fab (12")

 

65,540

 

62,550

 

 

Tianjin Fab (8")

 

34,250

 

33,200

 

 

Total monthly wafer fabrication capacity

 

189,790

 

185,750

 

 

Note:

 

 

*    Wafers per month at the end of the period in 8" equivalent wafers

 

 

 

 

 



Shipment and Utilization


 

 

8" equivalent wafers

 

2Q11

 

1Q11

 

2Q10

 

 

Wafer shipments including copper interconnects

 

451,552

 

471,231

 

496,766

 

 

 

 

 

 

 

Utilization rate(1)

 

74.7%

 

72.2%

 

94.3%

 

 

Note:

 

 

(1) Capacity utilization based on total wafer out divided by estimated capacity

 

 

 

 

 

 


  • Wafer shipments decreased 4.2% QoQ to 451,552 units of 8-inch equivalent wafers in 2Q11 from 471,231 units of 8-inch equivalent wafers in 1Q11, and decreased 9.1% YoY from 496,766 8-inch equivalent wafers in 2Q10.

Detailed Financial Analysis

Gross Profit Analysis


 

 

Amounts in US$ thousands

 

2Q11

 

1Q11

 

QoQ

 

2Q10

 

YoY

 

 

Cost of sales

 

302,116

 

301,782

 

0.11%

 

314,547

 

-3.95%

 

 

  Depreciation

 

101,593

 

104,449

 

-2.73%

 

129,506

 

-21.55%

 

 

  Other manufacturing costs

 

199,887

 

196,727

 

1.61%

 

184,094

 

8.58%

 

 

  Share-based compensation

 

636

 

606

 

4.95%

 

947

 

-32.84%

 

 

Gross profit

 

50,273

 

68,777

 

-26.90%

 

59,876

 

-16.04%

 

 

Gross margin

 

14.30%

 

18.60%

 

 

16.00%

 

 

 

 

 

 

 

 

 

 

 


  • Cost of sales increased to $302.1 million in 2Q11, an increase of 0.1% QoQ from $301.8 million in 1Q11 primarily due to an increase in other manufacturing costs.
  • Gross profit of $50.3 million in 2Q11, compared to a gross profit of $68.8 million in 1Q11 and gross profit of $59.9 million in 2Q10.
  • Gross margin was 14.3% in 2Q11 down from 18.6% in 1Q11 primarily due to decreased wafer starts from weakened demand in the third quarter.

Operating Expense (income) Analysis


 

 

Amounts in US$ thousands

 

2Q11

 

1Q11

 

QoQ

 

2Q10

 

YoY

 

 

Total operating expenses

 

50,382

 

76,623

 

-34.2%

 

70,363

 

-28.4%

 

 

 Research and development

 

51,501

 

49,573

 

3.9%

 

43,031

 

19.7%

 

 

 General and administrative

 

(8,933)

 

19,427

 

-

 

14,283

 

-

 

 

 Selling and marketing

 

8,139

 

7,738

 

5.2%

 

6,869

 

18.5%

 

 

 Others operating expense (income)

 

(325)

 

(115)

 

-

 

6,180

 

-

 

 

 

 

 

 

 

 

 

 


  • R&D expenses increased to $51.5 million in 2Q11, up 3.9% QoQ from $49.6 million in 1Q11 due to an increase in engineering experiment expenses.
  • G&A expense was -$8.9 million in 2Q11. Comparing with $19.4 million in 1Q11, the fluctuation was mainly due to a recovery from bad debt and decrease in personnel related expense.
  • Selling & marketing expenses increased to $8.1 million in 2Q11, up 5.2% QoQ from $7.7 million in 1Q11 primarily due to an increase in selling activities.

Other Income (Expenses)


 

 

Amounts in US$ thousands

 

2Q11

 

1Q11

 

QoQ

 

2Q10

 

YoY

 

 

Other income (expenses)

 

531

 

2,702

 

-

 

101,779

 

-

 

 

 Interest income

 

1,152

 

1,191

 

-3.3%

 

863

 

33.5%

 

 

 Interest expense

 

(5,884)

 

(4,248)

 

38.5%

 

(6,265)

 

-6.1%

 

 

Change in the fair value of commitment to issue shares and warrants

 

 

 

-

 

105,952

 

-

 

 

 Foreign currency exchange (loss) gain

 

3,828

 

4,007

 

-4.5%

 

(3,170)

 

-

 

 

 Other, net

 

1,435

 

1,752

 

-18.1%

 

4,399

 

-67.4%

 

 

 

 

 

 

 

 

 

 


Depreciation and Amortization

  • Depreciation and amortization in 2Q11 was $133.5 million compared to $130.9 million in 1Q11.

Liquidity


 

 

Amounts in US$ thousands

 

2Q11

 

1Q11

 

 

Cash and cash equivalents

 

410,912

 

394,062

 

 

Restricted cash

 

184,808

 

128,135

 

 

Accounts receivable

 

236,738

 

231,015

 

 

Inventories

 

196,876

 

190,414

 

 

Others

 

212,447

 

141,220

 

 

Total current assets

 

1,241,781

 

1,084,846

 

 

 

 

 

 

Accounts payable

 

448,321

 

434,558

 

 

Short-term borrowings

 

712,423

 

628,182

 

 

Current portion of long-term debt

 

251,486

 

281,608

 

 

Others

 

168,815

 

175,004

 

 

Total current liabilities

 

1,581,045

 

1,519,352

 

 

 

 

 

 

Cash Ratio

 

0.3x

 

0.3x

 

 

Quick Ratio

 

0.5x

 

0.4x

 

 

Current Ratio

 

0.8x

 

0.7x

 

 

 

 

 

 

 



Capital Structure


 

 

Amounts in US$ thousands

 

2Q11

 

1Q11

 

 

Cash and cash equivalents

 

410,912

 

394,062

 

 

Restricted cash

 

184,808

 

128,135

 

 

 

 

 

 

Current portion of promissory notes

 

29,375

 

29,582

 

 

Non-current portion of promissory notes

 

42,541

 

56,728

 

 

 

 

 

 

Short-term borrowings

 

712,423

 

628,182

 

 

Current portion of long-term debt

 

251,486

 

281,608

 

 

Long-term debt

 

182,122

 

179,132

 

 

Total debt

 

1,146,031

 

1,088,922

 

 

 

 

 

 

Equity(1)

 

2,434,598

 

2,183,850

 

 

 

 

 

 

Total debt to equity ratio

 

47.1%

 

49.9%

 

 

Note:

 

 

(1) Including portion of noncontrolling interest.

 

 

 

 

 



Cash Flow


 

 

Amounts in US$ thousands

 

2Q11

 

1Q11

 

 

Net cash from operating activities

 

79,371

 

73,439

 

 

Net cash from investing activities

 

(356,711)

 

(400,943)

 

 

Net cash from financing activities

 

294,125

 

205,422

 

 

Effect of exchange rate changes

 

65

 

336

 

 

Net change in cash

 

16,850

 

(121,746)

 

 

 

 

 

 

 


Capex Summary

  • Capital expenditures for 2Q11 were $284.2 million.

Recent Highlights and Announcements

  • SMIC Appoints Dr. Tzu-Yin Chiu as CEO and Executive Director Shanghai  [2011-08-08]
  • Zhang Wenyi Appointed SMIC's Chairman, Executive Director, and Acting CEO  (2011-07-18)
  • Appointment of Chairman, Redesignation of Director and Independent Non-Executive Director, Resignation of Chief Executive Officer, Appointment of Acting Chief Executive Officer and Authorised Representative, Clarification Announcement, Resumption of Trading (2011-07-15)
  • Clarification Announcement (2011-06-30)
  • Suspension of Trading (2011-06-30)
  • Annual General Meeting Held on 29 June, 2011 Poll Results (2011-06-30)
  • Passing away of the Chairman of the Board and INED and Member of the Audit Committee and Authorised Representative (2011-06-29)
  • Change in Directorate  (2011-06-23)
  • Brite Semiconductor Achieves First-Pass Silicon Success with SMIC's 40nm Process (2011-06-21)
  • SMIC Appoints Former Chartered Executive Mike Rekuc as President of SMIC Americas (2011-06-15)
  • Closure of Register of Members (2011-06-10)
  • Announcement Regarding Delay in Despatch of Circular - Major Transaction Establishment of a Joint Venture with Hubei Science & Technology Investment Group Co., Ltd  (2011-06-02)
  • Grant of Options (2011-05-31)
  • Form of Proxy for Use at the Annual General Meeting to be Held on 29 June 2011 (2011-05-29)
  • Circulars - (1) Notice of Annual General Meeting; (2) Re-election of Directors and (3) Proposed General Mandates to Issue and Repurchase Shares  (2011-05-29)
  • Notice of Annual General Meeting (2011-05-29)
  • Notification Letter and Request Form to Non-registered Holders (2011-05-29)
  • Notification Letter to Registered Shareholders (2011-05-29)
  • Extraordinary General Meeting Held on 27 May 2011 Poll Results (2011-05-27)
  • SMIC Earns "2010 Excellent Supplier Award" from GalaxyCore (2011-05-24)
  • SMIC Reports Results for the Three Months Ended March 31, 2011 (2011-05-19)
  • Spansion and SMIC Expand Foundry Agreement (2011-05-16)
  • Further Information on Major Transaction Establishment of a Joint Venture with Hubei Science & Technology Investment Group Co., Ltd (2011-05-12)
  • Announcement Major Transaction Establishment of a Joint Venture with Hubei Science & Technology Investment Group Co., Ltd (2011-05-12)
  • SMIC and Hubei Science & Technology Investment Group Sign Joint Venture Agreement in Wuhan  (2011-05-12)
  • Notice of Extraordinary General Meeting (2011-05-10)
  • (1) Subscription of Convertible Preferred Shares and Warrants by Country Hill Limited, A Wholly-owned Subsidiary of China Investment Corporation (2) Pre-emptive Subscription of Convertible Preferred Shares and Warrants by Datang Holdings (hongkong) Investment Company Limited (3) Proposed Special Mandate and Further Special Mandate to Issue Convertible Preferred Shares, Warrants and Ordinary Shares on Conversion of the Convertible Preferred Shares (4) Notice of Extraordinary General Meeting (2011-05-10)
  • Notification Letter and Request Form to Non-registered Holders (2011-05-10)
  • Notification Letter (2011-05-10)
  • Form of Proxy for Use at the Extraordinary General Meeting to be Held on 27 May, 2011 (2011-05-10)
  • Closure of Register of Members (2011-05-09)
  • Connected Transaction Pre-emptive Subscription of Convertible Preferred Shares and Warrants by Datang Holdings (Hong Kong) Investment Company Limited (2011-05-06)
  • SMIC's Major Shareholder, Datang, Wishes to Subscribe for Pre-emptive Securities  (2011-05-06)
  • Notification of Board Meeting  (2011-04-29)
  • Letter and Reply Form to New Registered Shareholder - Election of Means of Receipt of Corporate Communication  (2011-04-28)
  • Notification Letter and Request Form to Non-registered Holders (2011-04-28)
  • Notification Letter and Change Request Form to Registered Holders  (2011-04-28)
  • Clarification Announcement (2011-04-21)
  • SMIC to Receive Investment from CIC (2011-04-19)
  • (1) Proposed Issue of Convertible Preferred Shares, Warrants and Warrant Preferred Shares to Country Hill Limited, a Wholly-Owned Subsidiary of China Investment Corporation under Special Mandate (2) Pre-emptive Right of Datang and (3) Pre-emptive Right of TSMC (2011-04-18)
  • SMIC Earns Texas Instruments' Supplier Excellence Award for 2010 (2011-04-07)

Please visit SMIC's website at http://www.smics.com/website/enVersion/Press_Center/newsRelease.ftl for further details regarding the recent announcements.


Semiconductor Manufacturing International Corporation

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(In US$ thousands, except share data)

 

 

 

 

 For the three months ended 

 

 

 

 

 June 30,2011 

 

 

 March 31, 2011 

 

 

 

 

 (Unaudited) 

 

 

 (Unaudited) 

 

 

 

 

 

 

 

 

Sales , net

 

 

352,389

 

 

370,559

 

 

Cost of sales

 

 

302,116

 

 

301,782

 

 

Gross profit

 

 

50,273

 

 

68,777

 

 

 

 

 

 

 

 

Operating expenses (income):

 

 

 

 

 

 

Research and development  

 

 

51,501

 

 

49,573

 

 

General and administrative

 

 

(8,933)

 

 

19,427

 

 

Selling and marketing  

 

 

8,139

 

 

7,738

 

 

Other operating income

 

 

(325)

 

 

(115)

 

 

Total operating expenses, net

 

 

50,382

 

 

76,623

 

 

 

 

 

 

 

 

 Loss from operations

 

 

(109)

 

 

(7,846)

 

 

 

 

 

 

 

 

Total other income, net

 

 

531

 

 

2,702

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income tax and equity investment

 

 

422

 

 

(5,144)

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

 

(5,121)

 

 

128

 

 

Gain from equity investment

 

 

1,078

 

 

1,016

 

 

 Loss from continuing operations

 

 

(3,621)

 

 

(4,000)

 

 

 

 

 

 

 

 

 Income from discontinued operations

 

 

-

 

 

14,742

 

 

Net income (loss)

 

 

(3,621)

 

 

10,742

 

 

 

 

 

 

 

 

Accretion of interest to noncontrolling interest

 

 

(151)

 

 

(508)

 

 

Income (loss) attributable to Semiconductor Manufacturing International Corporation

 

 

(3,772)

 

 

10,234

 

 

 

 

 

 

 

 

Loss per share from continuing operations, basic and diluted  

 

 

(0.00)

 

 

(0.00)

 

 

Earnings per share from discontinued operations, basic and diluted

 

 

-

 

 

0.00

 

 

Earnings (loss) per share attributable to Semiconductor Manufacturing
International Corporation ordinary shareholders, basic and diluted  

 


 

(0.00)

 

 

0.00

 

 

Loss per ADS from continuing operations, basic and diluted  

 

 

(0.01)

 

 

(0.01)

 

 

Earnings per ADS from discontinued operations, basic and diluted

 

 

-

 

 

0.03

 

 

Earnings (loss) per ADS attributable to Semiconductor Manufacturing
International Corporation ordinary ADS holders, basic and diluted  

 


 

(0.01)

 

 

0.02

 

 

 

 

 

 

 

 

Shares used in calculating basic earnings (loss) per share

 

 

28,501,285,957

 

 

27,370,653,849

 

 

 

 

 

 

 

 

Shares used in calculating diluted earnings (loss) per share

 

 

28,501,285,957

 

 

27,370,653,849

 

 

 

 

 

 

 

 

 

 



Semiconductor Manufacturing International Corporation

CONDENSED CONSOLIDATED STATEMENT OF BALANCE SHEET

(In US$ thousands)

 

 

 

 

As of

 

 

 

 

June 30, 2011

 

 

March 31, 2011

 

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

   Cash and cash equivalents

 

 

410,912

 

 

394,062

 

 

   Restricted cash

 

 

184,808

 

 

128,135

 

 

   Accounts receivable, net of allowances of $43,194,154 and $50,200,060 at
     June 30, 2011 and March 31, 2011, respectively

 

 

236,738

 

 

231,015

 

 

   Inventories

 

 

196,876

 

 

190,414

 

 

   Prepaid expense and other current assets

 

 

212,447

 

 

141,220

 

 

Total current assets

 

 

1,241,781

 

 

1,084,846

 

 

 

 

 

 

 

 

   Prepaid land use rights

 

 

78,002

 

 

78,387

 

 

   Plant and equipment, net

 

 

2,665,092

 

 

2,518,710

 

 

   Acquired intangible assets, net

 

 

187,826

 

 

184,786

 

 

   Other long-term assets

 

 

132,093

 

 

136,914

 

 

   TOTAL ASSETS

 

 

4,304,794

 

 

4,003,643

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

   Accounts payable

 

 

448,321

 

 

434,558

 

 

   Accrued expenses and other current liabilities

 

 

139,440

 

 

145,422

 

 

   Short-term borrowings

 

 

712,423

 

 

628,182

 

 

   Current portion of promissory notes

 

 

29,375

 

 

29,582

 

 

   Current portion of long-term debt

 

 

251,486

 

 

281,608

 

 

Total current liabilities

 

 

1,581,045

 

 

1,519,352

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

   Promissory notes

 

 

42,541

 

 

56,728

 

 

   Long-term debt

 

 

182,122

 

 

179,131

 

 

   Other long-term liabilities

 

 

61,940

 

 

62,238

 

 

Total long-term liabilities

 

 

286,603

 

 

298,097

 

 

 

 

 

 

 

 

Total liabilities

 

 

1,867,648

 

 

1,817,449

 

 

 

 

 

 

 

 

Noncontrolling interest

 

 

3,602

 

 

3,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares, $0.0004 par value, 50,000,000,000 shares authorized, 27,454,995,825
 and 27,396,956,059 shares issued and outstanding at June 30, 2011 and
 March 31, 2011, respectively

 

 

10,982

 

 

10,959

 

 

Convertible preferred shares, $0.0004 par value, 5.000.000.000 shares
 authorized, 360,589,053 and nil shares issued and outstanding at June 30, 2011
 and March 31, 2011, respectively

 

 

144

 

 

-

 

 

   Additional paid-in capital

 

 

4,115,595

 

 

3,861,254

 

 

   Accumulated other comprehensive loss

 

 

(692)

 

 

(757)

 

 

   Accumulated deficit

 

 

(1,692,485)

 

 

(1,688,713)

 

 

Total equity

 

 

2,433,544

 

 

2,182,743

 

 

 

 

 

 

 

 

   TOTAL LIABILITIES, NONCONTROLLING INTEREST AND EQUITY

 

 

4,309,794

 

 

4,003,643

 

 

 

 

 

 

 

 

 



Semiconductor Manufacturing International Corporation

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(In US$ thousands)

 

 

 

 

 For the three months ended 

 

 

 

 

June 30, 2011

 

 

 March 31, 2011 

 

 

 

 

 (Unaudited) 

 

 

 (Unaudited) 

 

 

Cash flow from operating activities

 

 

 

 

 

 

Net (loss) income  

 

 

(3,621)

 

 

10,742

 

 

Depreciation and amortization

 

 

133,499

 

 

130,929

 

 

Gain from equity investment

 

 

(1,078)

 

 

(1,016)

 

 

Gain on deconsolidation of a subsidiary

 

 

-

 

 

(20,617)

 

 

Changes in working capital and others

 

 

(49,429)

 

 

(46,600)

 

 

Net cash provided by operating activities

 

 

79,371

 

 

73,439

 

 

 

 

 

 

 

 

Cash flow from Investing activities:

 

 

 

 

 

 

Acquisitions of:

 

 

 

 

 

 

  Property, plant and equipment

 

 

(284,925)

 

 

(392,576)

 

 

  Intangible assets

 

 

(10,830)

 

 

(7,023)

 

 

  Short-term investments

 

 

(6,558)

 

 

(22,433)

 

 

Changes in restricted cash relating to investing activities

 

 

(57,915)

 

 

17,180

 

 

Others

 

 

3,517

 

 

3,909

 

 

Net cash used in investing activities

 

 

(356,711)

 

 

(400,943)

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

Increase in short-term borrowings

 

 

84,241

 

 

256,127

 

 

 Decrease in long-term debt

 

 

(27,132)

 

 

(51,315)

 

 

Repayment of promissory notes

 

 

(15,000)

 

 

-

 

 

Proceeds from issuance of convertible preferred shares

 

 

249,396

 

 

-

 

 

Others

 

 

2,620

 

 

610

 

 

Net cash provided by financing activities

 

 

294,125

 

 

205,422

 

 

 

 

 

 

 

 

Effect of exchange rate changes

 

 

65

 

 

336

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH  

 

 

 

 

 

 

  EQUIVALENTS

 

 

16,850

 

 

(121,746)

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, beginning of period

 

 

394,062

 

 

515,808

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, end of period

 

 

410,912

 

 

394,062

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




Source: Semiconductor Manufacturing International Corporation
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