omniture

Siliconware Precision Industries Reports a 5.1% Quarter-over-Quarter Decline in Revenues Resulting in Earnings per Share of NT$ 0.36 or Earnings per ADS of US$ 0.06 for Fourth Quarter 2010

TAICHUNG, Jan. 26, 2011 /PRNewswire-Asia-FirstCall/ -- Siliconware Precision Industries Co., Ltd. ("SPIL" or the "Company") (Taiwan Stock Exchange: 2325; Nasdaq: SPIL) today announced that its consolidated sales revenues for the fourth quarter of 2010 were NT$15,479 million, which represented a 5.1% decline in revenues compared to the third quarter of 2010 and a 11.7% decline in revenues compared to the fourth quarter of 2009. SPIL reported a net income of NT$1,114 million for the fourth quarter of 2010, compared with a net income of NT$1,490 million and a net income of NT$4,303 million for the third quarter of 2010 and the fourth quarter of 2009, respectively.

Diluted earnings per ordinary share for this quarter was NT$0.36, and diluted earnings per ADS was US$0.06.

All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.

Operating results review:

  • For the fourth quarter of 2010, net revenues from IC packaging were NT$14,098 million and represented 91% of total net revenues. Net revenues from testing operations were NT$1,381 million and represented 9% of total net revenues.
  • Cost of goods sold was NT$13,272 million, representing a decrease of 5.1% compared to the third quarter of 2010 and a decrease of 5.2% compared to the fourth quarter of 2009.
    • Raw materials costs were NT$7,295 million for the fourth quarter of 2010, and represented 47.1% of total net revenues, whereas raw materials costs were NT$7,941 million and represented 48.7% of total net revenues for the third quarter of 2010.
    • The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$87 million.   
  • Gross profit was NT$2,207 million for the fourth quarter of 2010, representing a gross margin of 14.3%, which increased from a gross margin of 14.2% for the third quarter of 2010 and was down from 20.1% for the fourth quarter of 2009.   
  • Total operating expenses for the fourth quarter of 2010 were NT$985 million, which included selling expenses of NT$157 million, administrative expenses of NT$408 million and R&D expenses of NT$420 million. Total operating expenses represented 6.4% of total net revenues for the fourth quarter of 2010.
    • The accrued expenses of bonuses to employees, directors and supervisors accounted for under operating expenses totaled NT$33 million. 
  • Operating income was NT$1,222 million for the fourth quarter of 2010, representing an operating margin of 7.9%, which decreased from 9.6% for the third quarter of 2010 and decreased from 14.6% for the fourth quarter of 2009.
  • Non-operating items:
    • Our net currency exchange loss of NT$46 million for the fourth quarter of 2010 was mainly due to depreciation of our US dollar denominated asset as a result of a depreciation in the foreign currency exchange rate of the US dollar against NT dollar, our reporting currency.  
  • Net income before tax was NT$1,194 million for the fourth quarter of 2010, which decreased from a net income before tax of NT$1,479 million for the third quarter of 2010 and decreased from a net income before tax of NT$4,640 million for the fourth quarter of 2009.
  • Income tax expense was NT$80 million for the fourth quarter of 2010, compared with income tax credit of NT$11 million for the third quarter of 2010 and income tax expense of NT$338 million for the fourth quarter of 2009.
  • Net income was NT$1,114 million for the fourth quarter of 2010, which decreased from a net income of NT$1,490 million for the third quarter of 2010 and decreased from a net income of NT$4,303 million for the fourth quarter of 2009.
  • Total number of shares outstanding was 3,133 million shares as of Dec 31,2010. Diluted earnings per ordinary share for this quarter was NT$0.36, or US$0.06 per ADS. 

Capital expenditure and balance sheet highlight:

  • Our cash balances totaled NT$15,519 million as of Dec 31, 2010 from NT$11,820 million as of Sept 30, 2010, and NT$19,615 million as of Dec 31, 2009. 
  • Capital expenditures for the fourth quarter of 2010 totaled NT$5,127 million, which included NT$3,757 million for packaging equipment and NT$1,370 million for testing equipment.
  • Total depreciation expenses for the fourth quarter of 2010 totaled NT$2,241 million, which included NT$1,736 million was from packaging operations and NT$505 million from testing operations.

IC packaging service:

  • Net revenues from IC packaging operations were NT$14,098 million for the fourth quarter of 2010, which represented a decrease of NT$843 million or 5.6% compared to the third quarter of 2010.
  • Substrate-based packaging, leadframe-based packaging and wafer bumping & FCBGA accounted for 43%, 27% and 21%, respectively, of total net revenues for the fourth quarter of 2010.
  • Capital expenditures for IC packaging operations totaled NT$3,757 million for the fourth quarter of 2010, which included NT$3,579 million for packaging and building construction and NT$178 million for wafer bumping operations.
  • As of Dec 31, 2010 we had 6,089 wirebonders installed, of which 142 were added and 370 were disposed in the fourth quarter of 2010.

IC testing service:  

  • Net revenues from testing operations were NT$1,381 million for the fourth quarter of 2010, which represented an increase of NT$19 million or 1.4% compared to the third quarter of 2010.
  • Capital expenditures for testing operations totaled NT$1,370 million for the fourth quarter of 2010.
  • As of Dec 31, 2010 we had 319 testers installed, of which 12 were added and 4 were disposed in the fourth quarter of 2010.

Revenue Analysis

  • Breakdown by end applications:
By application 4Q10 3Q10
Computing 15% 15%
Communication 52% 51%
Consumer 18% 20%
Memory 15% 14%
  • Breakdown by packaging type:
By packaging type 4Q10 3Q10
Bumping & FCBGA 21% 20%
Substrate Based 43% 41%
Leadframe Based 27% 31%
Testing 9% 8%

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 ROC GAAP on an unaudited consolidated basis. Audited consolidated financial figures will be publicly announced upon the completion of our audit process. The investment gains or losses of our company for the three months ended Dec 31, 2010 reflect our gains or losses attributable to the fourth quarter of 2010 unaudited financial results of several of our investees which are evaluated under the equity method. Neither the unaudited consolidated financial data for our company for the three months ended Dec 31, 2010, nor the unaudited unconsolidated financial data for our company is necessarily indicative of the results that may be expected for any period thereafter.

-Tables to Follow -

SILICONWARE PRECISION INDUSTRIES CO., LTD. 
CONSOLIDATED BALANCE SHEET 
As of Dec 31, 2010 and 2009 
(Expressed in Thousands of New Taiwan Dollars (NTD) and U.S. Dollars (USD))
                       
    Dec 31,2010    Dec 31,2009    Sequential 
ASSETS    USD    NTD  %    NTD  %    Change  % 
Cash and cash equivalent   532,750   15,519,008 19   19,615,161 25   (4,096,153) -21
Accounts receivable   333,740   9,721,839 12   11,339,963 14   (1,618,124) -14
Inventories   120,697   3,515,897 4   2,992,331 4   523,566 17
Other current assets   83,602   2,435,324 4   2,035,699 3   399,625 20
Total current assets   1,070,788   31,192,068 39   35,983,154 46   (4,791,086) -13
                       
Long-term investments   222,632   6,485,268 8   4,141,187 5   2,344,081 57
Fixed assets   2,710,859   78,967,319 95   74,225,424 95   4,741,895 6
Less accumulated depreciation   (1,237,230)   (36,040,524) -44   (37,909,299) -48   1,868,775 -5
Net fixed assets   1,473,628   42,926,795 51   36,316,125 47   6,610,670 18
Other assets   67,042   1,952,940 2   1,870,121 2   82,819 4
Total Assets    2,834,091   82,557,071 100   78,310,587 100   4,246,484 5
                       
LIABILITIES AND STOCKHOLDERS' EQUITY                       
Liabilities                       
Short-term loans   50,164   1,461,281 2   225,488 -   1,235,793 548
Accounts payable   252,175   7,345,871 9   7,953,743 10   (607,872) -8
Other current liability   265,584   7,736,454 10   6,825,757 9   910,697 13
Long-term loans   149,954   4,368,158 6   - -   4,368,158 100
Other liabilities   11,985   349,126 -   224,373 -   124,753 56
Total Liabilities    729,862   21,260,890 26   15,229,361 19   6,031,529 40
                       
Stockholders' Equity                       
Capital stock   1,069,812   31,163,611 38   31,163,611 40   - -
Capital reserve   564,831   16,453,527 20   16,453,527 21   - -
Legal reserve   226,550   6,599,402 8   5,720,419 7   878,983 15
Retained earnings   193,785   5,644,961 8   8,937,249 12   (3,292,288) -37
Unrealized gain or loss on financial instruments   61,398   1,788,512 2   767,157 1   1,021,355 133
Cumulated translation adjustment   (12,147)   (353,832) -   39,263 -   (393,095) -1001
Total Equity    2,104,229   61,296,181 74   63,081,226 81   (1,785,045) -3
Total Liabilities & Shareholders' Equity    2,834,091   82,557,071 100   78,310,587 100   4,246,484 5
                       
Forex ( NT$ per US$ )         29.13     32.30        
(1)All figures are under ROC GAAP.  

SILICONWARE PRECISION INDUSTRIES CO., LTD.

 
CONSOLIDATED INCOME STATEMENT
 
(Expressed in Thousands of New Taiwan Dollars (NTD) and U.S. Dollars (USD))
    3 months ended on Dec 31   Sequential Comparison
    4Q 2010   4Q 2009   YOY   4Q 2010   3Q 2010   QOQ
    USD   NTD %   NTD   change %   NTD   NTD   change %
Revenues   510,016   15,478,985 100.0   17,527,853   -11.7   15,478,985   16,303,253   -5.1
Cost of Goods Sold   (437,299)   (13,272,013) -85.7   (14,005,063)   -5.2   (13,272,013)   (13,981,641)   -5.1
Gross Profit   72,717   2,206,972 14.3   3,522,790   -37.4   2,206,972   2,321,612   -4.9
Operating Expenses                              
Selling Expenses   (5,172)   (156,959) -1.0   (294,328)   -46.7   (156,959)   65,339   -340.2
Administrative Expenses   (13,423)   (407,391) -2.6   (286,519)   42.2   (407,391)   (401,396)   1.5
Research and Development Expenses   (13,845)   (420,206) -2.7   (390,065)   7.7   (420,206)   (416,451)   0.9
    (32,440)   (984,556) -6.4   (970,912)   1.4   (984,556)   (752,508)   30.8
Operating Income   40,277   1,222,416 7.9   2,551,878   -52.1   1,222,416   1,569,104   -22.1
                               
Non-operating Income   2,499   75,832 0.5   2,030,514   -96.3   75,832   151,109   -49.8
Non-operating Expenses   (3,443)   (104,491) -0.7   57,831   -280.7   (104,491)   (240,904)   -56.6
Income from Continuing Operations before Income Tax   39,333   1,193,757 7.7   4,640,223   -74.3   1,193,757   1,479,309   -19.3
Income Tax Credit (Expenses)   (2,632)   (79,894) -0.5   (337,611)   -76.3   (79,894)   10,478   -862.5
Net Income   36,701   1,113,863 7.2   4,302,612   -74.1   1,113,863   1,489,787   -25.2
                               
Earnings Per Ordinary Share- Diluted       NT$ 0.36     NT$ 1.37           NT$ 0.48    
                               
Earnings Per ADS- Diluted       US$ 0.06     US$ 0.21           US$ 0.08    
Weighted Average Outstanding Shares - Diluted ('k)       3,133,262     3,138,273           3,130,970    
                               
Forex ( NT$ per US$ )       30.35     32.30           31.92    
                               
(1) All figures are under ROC GAAP.
(2) 1 ADS is equivalent to 5 Common Shares.

SILICONWARE PRECISION INDUSTRIES CO., LTD.

 
CONSOLIDATED INCOME STATEMENT 
For the Twelve Months Ended on Dec 31, 2010 and 2009 
(Expressed in Thousands of New Taiwan Dollars (NTD) and U.S. Dollars (USD))
                 
    12 months ended on Dec 31, 2010 and 2009 
    2010    2009    YOY 
    USD  NTD  %    NTD    Change % 
Net Sales    2,104,035 63,857,470 100.0   59,294,592   7.7
Cost of Goods Sold    (1,780,602) (54,041,264) -84.6   (47,851,772)   12.9
Gross Profit    323,433 9,816,206 15.4   11,442,820   -14.2
Operating Expenses                 
Selling expenses    (12,929) (392,391) -0.6   (622,208)   -36.9
Administrative expenses    (49,729) (1,509,261) -2.4   (1,401,541)   7.7
Research and development expenses    (50,686) (1,538,307) -2.4   (1,276,041)   20.6
    (113,343) (3,439,959) -5.4   (3,299,790)   4.2
Operating Income    210,091 6,376,247 10.0   8,143,030   -21.7
                 
Non-operating Income    11,220 340,523 0.5   2,260,611   -84.9
Non-operating Expenses    (10,774) (326,990) -0.5   (190,503)   71.6
Income Before Income Tax    210,536 6,389,780 10.0   10,213,138   -37.4
Income Tax Credit (Expenses)     (25,136) (762,873) -1.2   (1,423,309)   -46.4
Net Income    185,401 5,626,907 8.8   8,789,829   -36.0
                 
                 
Earnings Per Ordinary Share- Diluted     NT$ 1.80     NT$ 2.80    
                 
Earnings Per ADS- Diluted     US$ 0.30     US$ 0.43    
Weighted Average Outstanding Shares - Diluted ('k)     3,133,262     3,138,273    
                 
Forex ( NT$ per US$)     30.35     32.30    
(1)All figures are under ROC GAAP.
(2) 1 ADS is equivalent to 5 Common Shares.

SILICONWARE PRECISION INDUSTRIES CO., LTD.

 
CONSOLIDATED STATEMENTS OF CASH FLOWS 
For 12 Months Ended on Dec 31, 2010 and 2009 
(Expressed in Thousands of New Taiwan Dollars (NTD) and U.S. Dollars (USD))
             
    12 months, 2010    12 months, 2009 
    USD    NTD    NTD 
Cash Flows from Operating Activities:             
Net income   193,165   5,626,907   8,789,829
Depreciation   291,087   8,479,361   8,448,458
Amortization   14,898   433,973   505,687
Gains on disposal of long-term investment   -   -   (1,947,879)
Change in working capital & others   (4,591)   (133,723)   (303,813)
Net cash flows provided from operating activities    494,559   14,406,518   15,492,282
             
Cash Flows from Investing Activities:             
Acquisition of property, plant, and equipment   (525,961)   (15,321,235)   (5,303,328)
Increase of financial asset carried at cost   (38,927)   (1,133,950)   6,642
Proceeds from disposal of equipments   43,050   1,254,054   9,277
Payment for deferred charges/other changes   (30,258)   (881,415)   (333,509)
Net cash used in investing activities    (552,096)   (16,082,546)   (5,620,918)
             
Cash Flows from Financing Activities:             
Increase of short-term loan   42,863   1,248,592   (414,024)
Increase of long-term loan   155,350   4,525,336   (3,000,000)
Cash dividends distributed to shareholders and cash bonus distributed to employees   (276,010)   (8,040,177)   (5,609,430)
Proceeds from the exercise of employee stock option /other charges   -   -   (30,083)
Net cash provided from financing activities    (77,798)   (2,266,249)   (9,053,537)
             
Foreign currency exchange effect     (5,282)   (153,876)   (43,631)
Net increase (decrease) in cash and cash equivalents    (140,616)   (4,096,153)   774,196
Cash and cash equivalents at beginning of period    673,366   19,615,161   18,840,965
Cash and cash equivalents at end of period    532,750   15,519,008   19,615,161
             
Forex ( NT$ per US$ )         29.13   32.98
             
(1) : All figures are under ROC GAAP.

Contact:    
Siliconware Precision Industries Co., Ltd. Janet Chen, IR Director
No.45, Jieh Show Rd. Tel: +886-3-5795678#3675
Hsinchu Science Park, Hsinchu Email: janet@spil.com.tw
Taiwan, 30056  
www.spil.com.tw Byron Chiang, Spokesperson
  Tel: +886-3-5795678#3671
  Email: byronc@spil.com.tw
Source: Siliconware Precision Industries Co., Ltd.
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