SPIL Reports 12.3% QoQ Growth in Revenues Resulting in Basic Earnings per Share of NT$ 0.90 or Diluted Earnings per Share of NT$ 0.78; Basic Earnings per ADS is US$ 0.14 and Diluted Earnings per ADS is US$ 0.12

TAICHUNG, , July 27, 2016 /PRNewswire/ -- Siliconware Precision Industries Co., Ltd. ("SPIL" or the "Company") (Taiwan Stock Exchange: 2325, NASDAQ: SPIL) today announced that its consolidated sales revenues for the second quarter of 2016 were NT$ 21,680 million, which represented a 12.3% growth in revenues compared to the first quarter of 2016 and a 2.1% growth in revenues compared to the second quarter of 2015. SPIL reported a net income of NT$ 2,809 million for the second quarter of 2016, compared with a net income of NT$ 1,604 million and a net income of NT$ 3,677 million for the first quarter of 2016 and the second quarter of 2015, respectively.

Basic earnings per share for this quarter was NT$ 0.90, and diluted earnings per ordinary share was NT$ 0.78. Basic earnings per ADS for this quarter was US$ 0.14, and diluted earnings per ADS was US$ 0.12.

All figures were prepared in accordance with T-IFRS on a consolidated basis.

Operating results review:

• For the second quarter of 2016, net revenues from IC packaging were NT$ 19,150 million and represented 88% of total net revenues. Net revenues from testing operations were NT$ 2,530 million and represented 12% of total net revenues.
  
• Cost of goods sold was NT$ 16,581 million, representing an increase of 8.2% compared to the first quarter of 2016 and an increase of 7.3% compared to the second quarter of 2015.
  
  • Raw materials costs were NT$ 7,261 million for the second quarter of 2016 and represented 33.5% of total net revenues, whereas raw materials costs were NT$ 6,454 million and represented 33.4% of total net revenues for the first quarter of 2016.
    
  • The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 253 million.
    
• Gross profit was NT$ 5,099 million for the second quarter of 2016, representing a gross margin of 23.5%, which increased from a gross margin of 20.6% for the first quarter of 2016 and decreased from 27.2% for the second quarter of 2015.
  
• Total operating expenses for the second quarter of 2016 were NT$ 2,228 million, which included selling expenses of NT$ 247 million, administrative expenses of NT$ 913 million and R&D expenses of NT$ 1,068 million. Total operating expenses represented 10.2% of total net revenues for the second quarter of 2016.
  
  • The accrued expenses of bonuses to employees, directors accounted for under operating expenses totaled NT$ 136 million.
    
• Operating income was NT$ 2,871 million for the second quarter of 2016, representing an operating margin of 13.3%, which increased from 9.8% for the first quarter of 2016 and decreased from 16.9% for the second quarter of 2015.
  
• Non-operating items:
  
  • Our non-operating items were NT$ 363 million, including net gains of NT$ 342 million on fair value change of financial liabilities at fair value through profit or loss, cash dividends of NT$ 266 million from ChipMos Taiwan, and net foreign exchange losses of NT$ 167 million.
    
• Net income before tax was NT$ 3,235 million for the second quarter of 2016, which increased from a net income before tax of NT$ 1,898 million for the first quarter of 2016 and decreased from a net income before tax of NT$ 4,332 million for the second quarter of 2015.
  
• Income tax expense was NT$ 426 million for the second quarter of 2016, compared with income tax expense of NT$ 294 million for the first quarter of 2016 and income tax expense of NT$ 655 million for the second quarter of 2015.
  
• Net income was NT$ 2,809 million for the second quarter of 2016, which increased from a net income of NT$ 1,604 million for the first quarter of 2016 and decreased from a net income of NT$ 3,677 million for the second quarter of 2015.
  
• Total number of shares outstanding was 3,116 million shares as of June 30, 2016. Basic earnings per share for this quarter was NT$ 0.90, and diluted earnings per ordinary share was NT$ 0.78. Basic earnings per ADS for this quarter was US$ 0.14, and diluted earnings per ADS was US$ 0.12.

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 24,508 million as of June 30, 2016 from NT$ 25,406 million as of Mar 31, 2016, and NT$ 28,103 million as of June 30, 2015.
  
• Capital expenditures for the second quarter of 2016 totaled NT$ 3,830 million.
  
• Total depreciation expenses for the second quarter of 2016 totaled NT$ 3,203 million.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 19,150 million for the second quarter of 2016, which represented an increase of NT$ 2,041 million or 11.9% compared to the first quarter of 2016.
  
• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 31%, 17% and 40%, respectively, of total net revenues for the second quarter of 2016.
  
• As of June 30, 2016 we had 7,967 wirebonders installed, of which 401 were added and 18 were disposed in the second quarter of 2016.

IC testing service:

• Net revenues from testing operations were NT$ 2,530 million for the second quarter of 2016, which represented an increase of NT$ 340 million or 15.5% compared to the first quarter of 2016.
  
• As of June 30, 2016 we had 576 testers installed, of which 16 were added and 2 were disposed in the second quarter of 2016.

For more information, please visit: http://photos.prnasia.com/prnk/20160727/8521604814

Revenue Analysis

• Breakdown by end applications:

• Breakdown by packaging type:

About SPIL

Siliconware Precision Industries Ltd. ("SPIL") (NASDAQ:SPIL, Taiwan Stock Exchange:2325) is a leading provider of comprehensive semiconductor assembly and test services. SPIL is dedicated to meeting all of its customers' integrated circuit packaging and testing requirements, with turnkey solutions that range from design consultations, modeling and simulations, wafer bumping, wafer probe and sort, package assembly, final test, burn-in, to shipment. Products include advanced leadframe, substrate packages, wafer bumping and FCBGA, which are widely used in personal computers, communications, Internet appliances, cellular phones, digital cameras, cable modems, personal digital assistants and LCD monitors. SPIL supplies services and support to fabless design houses, integrated device manufacturers and wafer foundries globally. For further information, visit SPIL's web site at www.spil.com.tw.

Safe Harbor Statement

The information herein contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. We have based these forward-looking statements on our current expectation and projections about future events. Such forward-looking statements are inherently subject to known and unknown risks, uncertainties, assumptions about us and other factors that may cause the actual performance, financial condition or results of operations of SPIL to be materially different from what may be implied by 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, among other things:

• the intensely competitive personal computer, communications, consumer ICs and non-commodity memory semiconductor industries and markets;
• cyclical nature of the semiconductor industry;
• risks associated with global business activities;
• non-operating losses due to poor financial performance of some of our investments;
• our dependence on key personnel;
• general economic and political conditions;
• possible disruptions in commercial activities caused by natural and human induced disaster, including terrorist activities and armed conflicts and contagious disease, such as the Severe Acute Respiratory Syndrome;
• fluctuations in foreign currency exchange rates; and
• other risks identified in our annual reports on Form 20-F filed with the U.S. Securities and Exchange Commission each year.

The words "anticipate," "believe," "estimate," "expect," "intend," "plan" and similar expressions, as they relate to us, are intended to identify a number of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.

All financial figures discussed herein are prepared pursuant to TIFRS on a consolidated basis. The investment gains or losses of our company for the three months ended June 30, 2016 reflect our gains or losses attributable to the second quarter of 2016 unaudited financial results of several of our investees which are evaluated under the equity method. Neither the consolidated financial data for our company for the three months ended June 30, 2016, nor the consolidated financial data for our company for the six months ended June 30, 2016 is necessarily indicative of the results that may be expected for any period thereafter.

Contact:
Siliconware Precision Industries Co., Ltd.  
No.45, Jieh Show Rd.                                                          
Hsinchu Science Park, Hsinchu
Taiwan, 30056
www.spil.com.tw

Janet Chen, IR Director         
janet@spil.com.tw
+886-3-5795678#3675

Mike Ma, Spokesperson
mikema@spil.com.tw  
+886-4-25545527#5601