Siliconware Precision Industries Reports a 4.2% Quarter-over-Quarter decline in Revenues Resulting in Earnings per Share of NT$ 0.67 or Earnings per ADS of US$ 0.11 for First Quarter 2014

TAICHUNG, April 30, 2014 /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 first quarter of 2014 were NT$ 18,060 million, which represented a 4.2% decline in revenues compared to the fourth quarter of 2013 and a 30.7% growth in revenues compared to the first quarter of 2013. SPIL reported a net income of NT$ 2,091 million for the first quarter of 2014, compared with a net income of NT$ 2,260 million and a net loss of NT$ 292 million for the fourth quarter of 2013 and the first quarter of 2013, respectively.

Diluted earnings per ordinary share for this quarter was NT$ 0.67, and diluted earnings per ADS was US$ 0.11.

All figures were prepared in accordance with TIFRS on a consolidated basis.

Operating results review:

• For the first quarter of 2014, net revenues from IC packaging were NT$ 15,941 million and represented 88% of total net revenues. Net revenues from testing operations were NT$ 2,119 million and represented 12% of total net revenues.
• Cost of goods sold was NT$ 14,065 million, representing a decrease of 3.1% compared to the fourth quarter of 2013 and an increase of 19.2% compared to the first quarter of 2013.
  • Raw materials costs were NT$ 6,180 million for the first quarter of 2014 and represented 34.2% of total net revenues, whereas raw materials costs were NT$ 6,485 million and represented 34.4% of total net revenues for the fourth quarter of 2013.
  • The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 155 million.
• Gross profit was NT$ 3,995 million for the first quarter of 2014, representing a gross margin of 22.1%, which decreased from a gross margin of 22.9% for the fourth quarter of 2013 and was up from 14.6% for the first quarter of 2013.
• Total operating expenses for the first quarter of 2014 were NT$ 1,603 million, which included selling expenses of NT$ 210 million, administrative expenses of NT$ 559 million and R&D expenses of NT$ 834 million. Total operating expenses represented 8.9% of total net revenues for the first quarter of 2014.
  • The accrued expenses of bonuses to employees, directors and supervisors accounted for under operating expenses totaled NT$ 73 million.
• Operating income was NT$ 2,392 million for the first quarter of 2014, representing an operating margin of 13.2%, which decreased from 14.0% for the fourth quarter of 2013 and increased from 4.6% for the first quarter of 2013.
• Net income before tax was NT$ 2,551 million for the first quarter of 2014, which decreased from a net income before tax of NT$ 2,795 million for the fourth quarter of 2013 and increased from a net loss before tax of NT$ 203 million for the first quarter of 2013.
• Income tax expense was NT$ 460 million for the first quarter of 2014, compared with income tax expense of NT$ 536 million for the fourth quarter of 2013 and income tax expense of NT$ 89 million for the first quarter of 2013.
• Net income was NT$ 2,091 million for the first quarter of 2014, which decreased from a net income of NT$ 2,260 million for the fourth quarter of 2013 and increased from a net loss of NT$ 292 million for the first quarter of 2013.
• Total number of shares outstanding was 3,138 million shares as of Mar 31, 2014. Diluted earnings per ordinary share for this quarter was NT$ 0.67, or US$ 0.11 per ADS.

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 18,945 million as of Mar 31, 2014 from NT$ 16,975 million as of Dec 31, 2013, and NT$ 17,413 million as of Mar 31, 2013.
• Capital expenditures for the first quarter of 2014 totaled NT$ 3,010 million, which included NT$ 2,168 million for packaging equipment and NT$ 842 million for testing equipment.
• Total depreciation expenses for the first quarter of 2014 totaled NT$ 2,816 million, which included NT$ 2,154 million was from packaging operations and NT$ 662 million from testing operations.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 15,941 million for the first quarter of 2014, which represented a decrease of NT$ 642 million or 3.9% compared to the fourth quarter of 2013.
• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 29%, 20% and 39%, respectively, of total net revenues for the first quarter of 2014.
• Capital expenditures for IC packaging operations totaled NT$ 2,168 million for the first quarter of 2014, which included NT$ 1,990 million for packaging and building construction and NT$ 178 million for wafer bumping operations.
• As of Mar 31, 2014 we had 7,544 wirebonders installed, of which 10 were added and 225 were disposed in the first quarter of 2014.

IC testing service:

• Net revenues from testing operations were NT$ 2,119 million for the first quarter of 2014, which represented a decrease of NT$ 142 million or 6.3% compared to the fourth quarter of 2013.
• Capital expenditures for testing operations totaled NT$ 842 million for the first quarter of 2014.
• As of Mar 31, 2014 we had 431 testers installed, of which 26 were added and 12 were disposed in the first quarter of 2014.

Revenue Analysis

> Breakdown by end applications:

> Breakdown by packaging type:

About SPIL

Siliconware Precision Industries Co., 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 http://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 Mar 31, 2014 reflect our gains or losses attributable to the first quarter of 2014 unaudited financial results of several of our investees which are evaluated under the equity method. The consolidated financial data for our company for the three months ended Mar 31, 2014 is not 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
http://www.spil.com.tw

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

Byron Chiang, Spokesperson
byronc@spil.com.tw
+886-3-5795678#3671