Siliconware Precision Industries Reports a 8.5% Quarter-over-Quarter growth in Revenues Resulting in Earnings per Share of NT$ 0.70 or Earnings per ADS of US$ 0.12 for Third Quarter 2013

TAICHUNG, , October 31, 2013 /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 third quarter of 2013 were NT$ 19,092 million, which represented a 8.5% growth in revenues compared to the second quarter of 2013 and a 13.3% growth in revenues compared to the third quarter of 2012. SPIL reported a net income of NT$ 2,184 million for the third quarter of 2013, compared with a net income of NT$ 1,740 million and a net income of NT$ 1,548 million for the second quarter of 2013 and the third quarter of 2012, respectively.

Diluted earnings per ordinary share for this quarter was NT$ 0.70, and diluted earnings per ADS was US$ 0.12.

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

Operating results review:

• For the third quarter of 2013, net revenues from IC packaging were NT$ 16,870 million and represented 88% of total net revenues. Net revenues from testing operations were NT$ 2,222 million and represented 12% of total net revenues.
• Cost of goods sold was NT$ 14,676 million, representing an increase of 5.4% compared to the second quarter of 2013 and an increase of 8.4% compared to the third quarter of 2012.
  • Raw materials costs were NT$ 6,691 million for the third quarter of 2013 and represented 35.1% of total net revenues, whereas raw materials costs were NT$ 6,509 million and represented 37.0% of total net revenues for the second quarter of 2013.
  • The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 165 million.
• Gross profit was NT$ 4,416 million for the third quarter of 2013, representing a gross margin of 23.1%, which increased from a gross margin of 20.9% for the second quarter of 2013 and was up from 19.6% for the third quarter of 2012.
• Total operating expenses for the third quarter of 2013 were NT$ 1,658 million, which included selling expenses of NT$ 211 million, administrative expenses of NT$ 583 million and R&D expenses of NT$ 864 million. Total operating expenses represented 8.7% of total net revenues for the third quarter of 2013.
  • The accrued expenses of bonuses to employees, directors and supervisors accounted for under operating expenses totaled NT$ 77 million.
• Operating income was NT$ 2,758 million for the third quarter of 2013, representing an operating margin of 14.4%, which increased from 10.8% for the second quarter of 2013 and increased from 11.2% for the third quarter of 2012.
• Non-operating items:
  • Our non-operating income was NT$ 136 million, including cash dividends of NT$ 9 million from ChipMos Bermuda.
• Net income before tax was NT$ 2,715 million for the third quarter of 2013, which increased from a net income before tax of NT$ 2,148 million for the second quarter of 2013 and increased from a net income before tax of NT$ 1,843 million for the third quarter of 2012.
• Income tax expense was NT$ 531 million for the third quarter of 2013, compared with income tax expense of NT$ 408 million for the second quarter of 2013 and income tax expense of NT$ 295 million for the third quarter of 2012.
• Net income was NT$ 2,184 million for the third quarter of 2013, which increased from a net income of NT$ 1,740 million for the second quarter of 2013 and increased from a net income of NT$ 1,548 million for the third quarter of 2012.
• Total number of shares outstanding was 3,128 million shares as of Sept 30, 2013. Diluted earnings per ordinary share for this quarter was NT$ 0.70, or US$ 0.12 per ADS.

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 13,817 million as of Sept 30, 2013 from NT$ 16,953 million as of June 30, 2013, and NT$ 16,854 million as of Sept 30, 2012.
• Capital expenditures for the third quarter of 2013 totaled NT$ 5,119 million, which included NT$ 4,349 million for packaging equipment and NT$ 770 million for testing equipment.
• Total depreciation expenses for the third quarter of 2013 totaled NT$ 2,638 million, which included NT$ 2,023 million was from packaging operations and NT$ 615 million from testing operations.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 16,870 million for the third quarter of 2013, which represented an increase of NT$ 1,147 million or 7.3% compared to the second quarter of 2013.
• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 37%, 20% and 31%, respectively, of total net revenues for the third quarter of 2013.
• Capital expenditures for IC packaging operations totaled NT$ 4,349 million for the third quarter of 2013, which included NT$ 3,303 million for packaging and building construction and NT$ 1,046 million for wafer bumping operations.
• As of Sept 30, 2013 we had 8,121 wirebonders installed, of which 320 were added and 92 were disposed in the third quarter of 2013.

IC testing service:

• Net revenues from testing operations were NT$ 2,222 million for the third quarter of 2013, which represented an increase of NT$ 343 million or 18.3% compared to the second quarter of 2013.
• Capital expenditures for testing operations totaled NT$ 770 million for the third quarter of 2013.
• As of Sept 30, 2013 we had 419 testers installed, of which 12 were added and 2 was disposed in the third quarter of 2013.

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 Sept 30, 2013 reflect our gains or losses attributable to the third quarter of 2013 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 Sept 30, 2013, nor the consolidated financial data for the nine months ended Sept 30, 2013 is necessarily indicative of the results that may be expected for any period thereafter.