HSINCHU, Taiwan, April 26 /Xinhua-PRNewswire-FirstCall/ -- TSMC today announced consolidated revenue of NT$64.90 billion, net income of NT$18.84 billion, and diluted earnings per share of NT$0.73 (US$0.11 per ADS unit) for the first quarter ended March 31, 2007.
Year-over-year, first quarter revenue decreased 16.6% while net income and diluted EPS decreased 42.2% and 42.3%, respectively. On a sequential basis, first quarter results represent a 13.4% decrease in revenue, and a decrease of 32.5% both in net income and in diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.
First quarter business was affected by inventory correction and seasonality, but revenue slightly exceeded the guidance given on January 25. Advanced process technologies (0.13-micron and below) accounted for 49% of wafer revenues with 90-nanometer process technology accounting for 22% and 65-nanometer about 1% of total wafer sales. Gross margin of 37.9% reached the mid point of the guidance, while operating margin of 27.5% was close to the high end of guidance. Net margin decreased 8.2 percentage points to 29% from the previous quarter.
"A majority of our customers' excess inventory has been worked through in the first quarter and the recovery of our business is already in place," said Lora Ho, VP and Chief Financial Officer of TSMC. "Relative to the first quarter, the communication and consumer segments will rebound quite well while the computer segment will grow at a lower pace," said Ho. "Based on our current business outlook, management's expectations for second quarter 2007 performance are as follows":
-- Revenue is expected to be between NT$73 billion and NT$75 billion;
-- Gross profit margin is expected to be between 42% and 44%;
-- Operating profit margin is expected to be between 32% and 34%.
Conference Call & Webcast Notice:
TSMC's quarterly review conference call will be held at 8 a.m. Eastern Time (8 p.m. Taiwan Time) on Thursday, April 26, 2007. The conference call will also be webcast live on the Internet. Investors wishing to access the live webcast should visit TSMC's web site at http://www.tsmc.com at least 15 minutes prior to the broadcast. Instructions will be provided on the web site to facilitate the download and installation of necessary audio applications. Investors without Internet access may listen to the conference call, in listen-only mode, by dialing 1-617-614-2707 in the U.S., 852-3002-1672 in Hong Kong, 65-6823-2164 in Singapore, and 44-207-365-8426 in the U.K. (Password: TSMC). An archived version of the webcast will be available on TSMC's web site for six months following the Company's quarterly review conference call and webcast.
Profile
TSMC (TAIEX: 2330; NYSE: TSM) is the world's largest dedicated semiconductor foundry, providing the industry's leading manufacturing capacity, process technology, and the foundry industry's largest portfolio of process-proven libraries, IP, design tools and reference flows. TSMC currently operates two twelve-inch wafer fabs, four eight-inch fabs and one six-inch fab. The Company also operates two eight-inch fabs at its wholly owned subsidiaries, WaferTech in the U.S. and TSMC (Shanghai) Company, Ltd. in China, and has substantial capacity commitments from a joint-venture fab, SSMC, in Singapore. Total managed capacity in 2006 exceeded seven million eight-inch equivalent wafers. TSMC is the first foundry to provide 65-nanometer production capabilities. TSMC's corporate headquarters are in Hsin-Chu, Taiwan. More information about TSMC is available at http://www.tsmc.com .
-Management Report and Tables Follow-
TSMC 1Q07 Quarterly Management Report April 26, 2007
Topics in This Report
-- Revenue Analysis
-- Capacity
-- Profit & Expense Analysis
-- Financial Condition Review
-- Cash Flow & CapEx
-- Recap of Recent Important Events & Announcements
Operating Results Review:
Summary:
(Amounts are on consolidated basis
and are in NT$ billion except 1Q07 4Q06 1Q06 QoQ YoY
noted otherwise)
EPS (NT$ per com. shr.) 0.73 1.08 1.26 (32.5%) (42.3%)
(US$ per ADR unit) 0.11 0.16 0.20 -- --
Consolidated Net Sales 64.90 74.96 77.85 (13.4%) (16.6%)
Gross Profit 24.61 34.45 37.73 (28.6%) (34.8%)
Gross Margin 37.9% 46.0% 48.5% -- --
Operating Expense (6.73) (7.05) (6.82) (4.4%) (1.3%)
Non-Operating Items* 2.19 2.10 3.62 4.3% (39.5%)
Net Income 18.84 27.91 32.61 (32.5%) (42.2%)
Net Profit Margin 29.0% 37.2% 41.9% -- --
Wafer Shipment (kpcs 8 inch-equiv.) 1,566 1,718 1,738 (8.9%) (9.9%)
* 1Q06 non-operating items include cumulative effect of changes in
accounting principle.
Remarks:
The first quarter diluted earnings per share were NT$0.73, representing a 42.3% decrease over the same period last year and a 32.5% sequential decline from the previous quarter. The consolidated operating results of 1Q07 are summarized below:
First quarter net sales were NT$65 billion, down 16.6% from NT$78 billion in first quarter 2006 and down 13.4% from NT$75 billion in fourth quarter 2006.
Gross profit for 1Q07 was NT$24.6 billion, representing a year-over-year decrease of 34.8% and a quarter-over-quarter decline of 28.6%. Gross margin was 37.9% in the first quarter 2007, down from 46% in the previous quarter.
Operating expenses were NT$6.7 billion or 10.4% of the net sales. The combined result from non-operating income and long-term investments was a gain of NT$2.2 billion.
Consolidated net income attributable to shareholders of the parent company was NT$18.8 billion, down 42.2% over the same period last year and down 32.5% from the previous quarter. Net profit margin was 29% in first quarter 2007.
I. Revenue Analysis
I.Wafer Sales Analysis
By Application 1Q07 4Q06 1Q06
Computer 29% 32% 37%
Communication 42% 42% 39%
Consumer 16% 16% 18%
Industrial/Others 9% 7% 5%
Memory 4% 3% 1%
By Technology 1Q07 4Q06 1Q06
N90- 23% 23% 20%
0.11/0.13um 26% 25% 29%
0.15/0.18um 30% 33% 32%
0.25/0.35um 15% 14% 14%
0.50um+ 6% 5% 5%
By Customer Type 1Q07 4Q06 1Q06
Fabless/System 70% 72% 74%
IDM 30% 28% 26%
By Geography 1Q07 4Q06 1Q06
North America 77% 78% 78%
Asia Pacific 11% 11% 11%
Europe 7% 7% 7%
Japan 5% 4% 4%
Revenue Analysis:
First quarter business was affected by inventory correction and seasonality, but consolidated net sales exceeded the high end of the guidance slightly to reach NT$64.9 billion, mainly due to better than expected exchange rates and an increase in revenues from our subsidiaries.
On a sequential basis, revenues from all three applications declined. Revenues from computer, communications and consumer applications declined by 21%, 15% and 12%, respectively.
Revenues from 65nm and 90nm accounted for about 23% of total wafer sales, flat from the fourth quarter 2006. Revenues from advanced technologies (0.13-micron and below) accounted for 49% of total wafer sales, up one percentage point from the previous quarter.
Revenues from IDM customers accounted for 30% of total wafer sales during the quarter, compared to 28% in the previous quarter.
Geographically, revenues from North America accounted for 77% of total wafer sales. Meanwhile, sales from Asia Pacific, Europe and Japan accounted for 11%, 7% and 5% of wafer sales, respectively.
II. Capacity
II. Capacity
Fab / (Wafer size) 1Q07(A) 2Q07(F) 3Q07(F) 4Q07(F) 2007(F)
Fab-2 (6")(Note 1) 257 257 273 273 1,060
Fab-3 (8") 259 262 267 269 1,057
Fab-5 (8") 144 155 163 166 627
Fab-6 (8") 245 255 274 279 1,053
Fab-7 (8") 0 0 0 0 0
Fab-8 (8") 239 239 260 265 1,004
Fab-12 (12")(Note 2) 169 180 205 221 775
Fab-14 (12")(Note 2) 103 113 154 176 546
WaferTech (8") 104 105 106 106 419
TSMC (Shanghai) (8") 90 94 98 101 383
TSMC total capacity
(8" equiv. Kpcs) 1,836 1,913 2,128 2,232 8,109
SSMC (8") 53 55 56 61 226
Total managed capacity
(8" equiv. Kpcs) 1,890 1,968 2,184 2,293 8,335
Note: 1. Figures represent number of 6 wafers. Conversion to
8-equivalent wafers is by dividing this number by 1.78
2. Figures represent number of 12 wafers. Conversion to
8-equivalent wafers is by multiplying this number by 2.25
Capacity:
Total TSMC managed capacity was 1,890K 8-inch equivalent wafers in 1Q07, 1% lower than the 1,912K 8-inch equivalent wafers in 4Q06, largely due to fewer working days and scheduled annual maintenance for some of the TSMC fabs.
TSMC managed capacity in 2Q07 will increase by 4% to reach 1,968K 8-inch equivalent wafers.
Total managed capacity for year 2007 is expected to be 8,335K 8-inch equivalent wafers, up 18% from 7,062K 8-inch equivalent wafers in year 2006.
III. Profit & Expense Analysis
III - 1. Gross Profit Analysis
(Amount: NT$ billion) 1Q07 4Q06 1Q06
COGS 40.3 40.5 40.1
Depreciation 18.5 18.2 16.2
Other MFG Cost 21.8 22.3 23.9
Gross Profit 24.6 34.5 37.7
Gross Margin 37.9% 46.0% 48.5%
Gross Profit Analysis:
Consolidated gross profit for the first quarter 2007 was NT$24.6 billion, or 37.9% of net sales, down from a gross profit of NT$34.5 billion, or 46% of net sales, in the previous quarter. The gross margin declined by 8.1 percentage points largely due to lower capacity utilization, lower average selling price, an increase in depreciation expenses, and a lower provision for sales returns in 4Q06.
III - 2. Operating Expenses
(Amount: NT$ billion) 1Q07 4Q06 1Q06
Total Operating Exp. 6.73 7.05 6.82
SG&A 2.79 2.91 2.98
Research & Development 3.94 4.13 3.84
* Certain prior period amounts have been reclassified to conform with the
current period presentation.
Operating Expenses:
Total operating expenses for 1Q07 were NT$6.7 billion, compared to NT$7.1 billion in fourth quarter 2006. Total operating expenses represented 10.4% of net sales, compared to 9.4% for the previous quarter.
Research and development expenditures decreased by NT$193 million sequentially, mainly due to a reduction in 65nm related expenditures as we entered into volume production for 65nm process node.
SG&A expenses were NT$2.8 billion, compared to NT$2.9 billion in fourth quarter 2006.
III - 3. Non-Operating Items
(Amount: NT$ million) 1Q07 4Q06 1Q06
Non-Operating Income/(Exp.) 1,830 1,713 1,417
Net Interest Income/(Exp.) 1,162 1,030 775
Other Non-Operating 668 683 642
L-T Investments 361 388 600
SSMC 70 59 462
Others 291 329 138
Total Non-Operating Items 2,191 2,101 2,017
Non-Operating Items:
Combined result from non-operating income and long-term investments was a gain of NT$2.2 billion for first quarter 2007.
Non-operating income totaled NT$1.8 billion during the first quarter 2007, compared to an income of NT$1.7 billion in the previous quarter. Higher non-operating income was mainly due to an increase in interest income.
Net investment income was NT$361 million in first quarter 2007, compared to an income of NT$388 million in 4Q06.
IV. Financial Condition Review
IV - 1. Liquidity Analysis *
(Selected Balance Sheet Items)
(Amount: NT$ billion) 1Q07 4Q06 1Q06
Cash & Marketable Securities 217.4 195.1 192.3
Accounts Receivable - Trade 33.1 31.6 38.0
Inventory 22.3 21.4 18.4
Total Current Assets 286.1 260.3 259.3
Accounts Payable 19.2 20.6 22.4
Current Portion of Bonds Payable 4.5 7.0 2.5
Accrued Liabilities and Others 21.4 19.3 16.0
Total Current Liabilities 45.1 46.9 40.9
Current Ratio (x) 6.3 5.6 6.3
Net Working Capital 241.0 213.5 218.4
Liquidity Analysis:
Total cash and marketable securities increased by NT$22 billion in the first quarter 2007, mainly due to the free cash flows generated during the quarter. As a result, TSMC ended the quarter with NT$286.1 billion in total current assets, compared to NT$260.3 billion at the end of the previous quarter.
Total current liabilities were NT$45.1 billion at the end of the first quarter 2007, compared to NT$46.9 billion at the end of the previous quarter. The decrease was mainly due to the repayment of NT$2.5 billion in bonds payable.
As a result, net working capital increased to NT$241 billion and current ratio improved to 6.3.
IV - 2. Receivable/Inventory Days
1Q07 4Q06 1Q06
Days of Receivable 47 43 46
Days of Inventory 52 50 44
Receivable/Inventory Days Trend:
Days of receivable were 47 days in 1Q07, compared to 43 days in the previous quarter.
Days of inventory increased by 2 days to reach 52 days.
IV - 3. Debt Service
(Amount: NT$ Billion) 1Q07 4Q06 1Q06
Cash & Marketable Securities 217.4 195.1 192.3
Interest-Bearing Debt 26.2 27.6 27.2
Net Cash Reserves 191.2 167.5 165.1
Debt Service:
As a result of the free cash flows generated during the quarter, net cash reserves -- defined as the excess of cash and short-term marketable securities over interest-bearing debt -- increased by NT$23.7 billion to reach NT$191.2 billion in 1Q07.
V - 1. Consolidated Cash Flow Analysis
(Amount: NT$ billion) 1Q07 4Q06 1Q06
Net Income 18.8 27.9 32.6
Depreciation & Amortization 20.3 19.7 17.7
Other Op Sources/(Uses) (1.0) 5.4 (1.4)
Total Op Sources/(Uses) 38.1 53.0 48.9
Capital Expenditure (14.0) (17.6) (11.5)
Marketable Financial Instruments 3.5 (6.7) (12.8)
Other Investing Sources/(Uses) (2.9) (4.1) 0.2
Net Investing Sources/(Uses) (13.4) (28.4) (24.1)
Repayment of Bonds Payable (2.5) 0.0 0.0
Other Financing Sources/(Uses) (0.3) 0.8 0.1
Net Financing Sources/(Uses) (2.8) 0.8 0.1
Net Cash Position Changes 21.9 25.4 24.9
Exchange Rate Changes & Others 0.6 (0.5) (0.2)
Ending Cash Balance 140.3 117.8 121.3
Summary of Consolidated Cash Flow:
During first quarter 2007, TSMC generated NT$38 billion in cash from operating activities, mainly from net income of NT$18.8 billion and depreciation & amortization of NT$20.3 billion.
Net cash used in investment activities totaled NT$13.4 billion, mainly due to capital expenditures of NT$14 billion.
Net cash used in financing activities was NT$2.8 billion during the quarter, mainly for the repayment of NT$2.5 billion in bonds payable.
As a result, TSMC ended the quarter with a cash balance of NT$140.3 billion, NT$22.4 billion higher than in 4Q06.
Consolidated Operating and Free Cash Flows:
TSMC continues to generate strong operating cash flows and free cash flows. Cash flows generated from operating activities were NT$38 billion, down from NT$53 billion generated in 4Q06. Free cash flows, defined as the excess of operating cash flows over capital expenditures, totaled NT$24.2 billion in 1Q07, compared to NT$35.4 billion generated in the previous quarter, mainly due to lower operating cash flows in 1Q07.
To view V - 2. Consolidated Operating and Free Cash Flows, please visit http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf .
V - 3. Capital Expenditures
(In US$ Million) 4Q06 1Q07
TSMC 561 419
TSMC Subsidiaries 10 5
Total TSMC 571 424
Capital Expenditures:
Capital expenditures for TSMC consolidated group totaled US$424 million during the quarter. Most of the spending was for the purchase of 12-inch production equipment.
For year 2007, total capital expenditures for TSMC consolidated group is expected to be in the range of US$2.6 billion to US$2.8 billion, unchanged from our previous guidance provided in January 2007.
VI. Recap of Recent Important Events & Announcements
-- TSMC 45nm Design Ecosystem In Place (2007/04/09)
-- TSMC Expects to Enter 45nm Production in September (2007/04/09)
-- TSMC Board Approves Conversion of Philips' TSMC Common Shares to
ADSs (2007/04/02)
-- TSMC Announces 55nm Process Technology Readiness (2007/03/27)
-- Philips and TSMC Announce Joint Plan to Facilitate Orderly Exit by
Philips from TSMC Shareholding (2007/03/09)
-- TSMC Achieves 65 Nanometer Embedded DRAM Milestone (2007/03/06)
-- TSMC Board Proposes Distribution of NT$3.0 Cash and 0.5% Stock Per
Share (2007/02/06)
-- TSMC Opens Office in India (2007/02/05)
* Please visit TSMC's Web site ( http://www.tsmc.com ) for details about
these and other announcements.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars(USD)) (1)
December 31, 2006
March 31, 2007 (unaudited) (Audited)
ASSETS USD NTD % NTD %
Current Assets
Cash and Cash Equivalents $4,239 $140,274 23.0 $117,837 20.1
Investments in Marketable
Financial Instruments 2,330 77,096 12.7 77,242 13.1
Accounts Receivable - Trade 1,000 33,094 5.4 31,589 5.4
Inventories, Net 673 22,259 3.7 21,431 3.6
Other Current Assets 404 13,356 2.2 12,218 2.1
Total Current Assets 8,646 286,079 47.0 260,317 44.3
Long-Term Investments 1,577 52,185 8.6 53,895 9.2
Property, Plant and Equipment 22,188 734,182 120.6 717,132 122.1
Less: Accumulated Depreciation (14,622) (483,834) -79.5 (463,038) -78.8
Property, Plant and
Equipment, Net 7,566 250,348 41.1 254,094 43.3
Other Assets 609 20,159 3.3 19,179 3.2
Total Assets $18,398 $608,771 100.0 $587,485 100.0
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities
Short-Term Bank Loans $2 $79 0.0 $-- --
Accounts Payables 306 10,129 1.7 9,802 1.7
Payables to Contractors and
Equipment Suppliers 275 9,094 1.5 10,769 1.8
Accrued Expenses and Other
Current Liabilities 639 21,101 3.4 19,286 3.3
Current Portion of Bonds
Payable and Long-Term
liabilities 142 4,714 0.8 7,004 1.2
Total Current Liabilities 1,364 45,117 7.4 46,861 8.0
Bonds Payable 378 12,500 2.1 12,500 2.1
Other Long-Term Liabilities 586 19,415 3.2 18,986 3.2
Total Liabilities 2,328 77,032 12.7 78,347 13.3
Shareholders' Equity
Attributable to Shareholders
of the Parent
Capital Stock 7,807 258,330 42.4 258,297 44.0
Capital Surplus 1,639 54,231 8.9 54,107 9.2
Retained Earnings 6,527 215,963 35.5 197,125 33.6
Treasury Stock (28) (918) -0.2 (918) -0.2
Others 31 1,020 0.2 (630) -0.1
Total Equity Attributable
to Shareholders of the
Parent 15,976 528,626 86.8 507,981 86.5
Minority Interest 94 3,113 0.5 1,157 0.2
Total Shareholders' Equity 16,070 531,739 87.3 509,138 86.7
Total Liabilities &
Shareholders' Equity $18,398 $608,771 100.0 $587,485 100.0
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars(USD)) (1)
March 31, 2006 (unaudited)
ASSETS NTD %
Current Assets
Cash and Cash Equivalents $121,251 21.8
Investments in Marketable Financial
Instruments 71,006 12.8
Accounts Receivable - Trade 38,012 6.8
Inventories, Net 18,409 3.3
Other Current Assets 10,572 2.0
Total Current Assets 259,250 46.7
Long-Term Investments 34,726 6.3
Property, Plant and Equipment 655,396 118.0
Less: Accumulated Depreciation (413,852) -74.5
Property, Plant and Equipment,
Net 241,544 43.5
Other Assets 19,772 3.5
Total Assets $555,292 100.0
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-Term Bank Loans $-- --
Accounts Payables 10,687 1.9
Payables to Contractors and
Equipment Suppliers 11,680 2.1
Accrued Expenses and Other Current
Liabilities 15,996 2.9
Current Portion of Bonds Payable
and Long-Term liabilities 2,505 0.5
Total Current Liabilities 40,868 7.4
Bonds Payable 17,000 3.1
Other Long-Term Liabilities 18,813 3.3
Total Liabilities 76,681 13.8
Shareholders' Equity Attributable to
Shareholders of the Parent
Capital Stock 247,331 44.5
Capital Surplus 57,208 10.3
Retained Earnings 175,378 31.6
Treasury Stock (918) -0.2
Others (1,066) -0.1
Total Equity Attributable to
Shareholders of the Parent 477,933 86.1
Minority Interest 678 0.1
Total Shareholders' Equity 478,611 86.2
Total Liabilities & Shareholders'
Equity $555,292 100.0
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD) )
(1)
QoQ YoY
ASSETS Amount % Amount %
Current Assets
Cash and Cash Equivalents $22,437 19.0 $19,023 15.7
Investments in Marketable Financial
Instruments (146) -0.2 6,090 8.6
Accounts Receivable - Trade 1,505 4.8 (4,918) -12.9
Inventories, Net 828 3.9 3,850 20.9
Other Current Assets 1,138 9.3 2,784 26.3
Total Current Assets 25,762 9.9 26,829 10.3
Long-Term Investments (1,710) -3.2 17,459 50.3
Property, Plant and Equipment 17,050 2.4 78,786 12.0
Less: Accumulated Depreciation (20,796) 4.5 (69,982) 16.9
Property, Plant and Equipment,
Net (3,746) -1.5 8,804 3.6
Other Assets 980 5.1 387 2.0
Total Assets $21,286 3.6 $53,479 9.6
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-Term Bank Loans $79 -- $79 --
Accounts Payables 327 3.3 (558) -5.2
Payables to Contractors and
Equipment Suppliers (1,675) -15.6 (2,586) -22.1
Accrued Expenses and Other Current
Liabilities 1,815 9.4 5,105 31.9
Current Portion of Bonds Payable
and Long-Term liabilities (2,290) -32.7 2,209 88.1
Total Current Liabilities (1,744) -3.7 4,249 10.4
Bonds Payable -- 0.0 (4,500) -26.5
Other Long-Term Liabilities 429 2.3 602 3.2
Total Liabilities (1,315) -1.7 351 0.5
Shareholders' Equity Attributable to
Shareholders of the Parent
Capital Stock 33 0.0 10,999 4.4
Capital Surplus 124 0.2 (2,977) -5.2
Retained Earnings 18,838 9.6 40,585 23.1
Treasury Stock -- 0.0 -- --
Others 1,650 -261.9 2,086 -195.7
Total Equity Attributable to
Shareholders of the Parent 20,645 4.1 50,693 10.6
Minority Interest 1,956 169.1 2,435 359.4
Total Shareholders' Equity 22,601 4.4 53,128 11.1
Total Liabilities & Shareholders'
Equity $21,286 3.6 $53,479 9.6
Note: (1) Amounts in New Taiwan dollars have been translated into U.S.
dollars at the rate of NT$33.089 as of March 31, 2007.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended March 31, 2007, December 31, 2006,
and March 31, 2006
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD)) (1)Except for Per Share Amounts and Shares Outstanding)
Q1 2007 Q4 2006
USD NTD % NTD %
Net Sales $1,973 $64,897 100.0 $74,963 100.0
Cost of Sales (1,225) (40,287) -62.1 (40,510) -54.0
Gross Profit 748 24,610 37.9 34,453 46.0
Operating Expenses
Research and Development
Expenses (4) (120) (3,942) -6.1 (4,135) -5.5
General and Administrative
Expenses (4) (58) (1,902) -2.9 (2,117) -2.8
Sales and Marketing Expenses (4) (26) (889) -1.4 (794) -1.1
Total Operating Expenses (204) (6,733) -10.4 (7,046) -9.4
Income from Operations 544 17,877 27.5 27,407 36.6
Non-Operating Income, Net 55 1,830 2.8 1,713 2.3
Investment Gains 11 361 0.6 388 0.5
Income before Income Tax 610 20,068 30.9 29,508 39.4
Income Tax (Expenses) Benefits (33) (1,107) -1.7 (1,494) -2.0
Net Income Before Cumulative
Effect of Changes in Accounting
Principles 577 18,961 29.2 28,014 37.4
Cumulative Effect of Changes in
Accounting Principles
(Net of Tax)
-- -- -- -- --
Net Income 577 18,961 29.2 28,014 37.4
Minority Interest (4) (122) -0.2 (102) -0.2
Net Income Attributable to
Shareholders of
the Parent 573 18,839 29.0 27,912 37.2
Earnings per Share - Diluted $0.02 $0.73 -- $1.08 --
Earnings per ADR - Diluted (2) $0.11 $3.65 -- $5.41 --
Weighted Average Outstanding
Shares - Diluted ('M) (3) -- 25,820 -- 25,815 --
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended March 31, 2007, December 31, 2006,
and March 31, 2006
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD)) (1)Except for Per Share Amounts and Shares Outstanding)
Q1 2006
NTD %
Net Sales $77,850 100.0
Cost of Sales (40,123) -51.5
Gross Profit 37,727 48.5
Operating Expenses
Research and Development Expenses
(4) (3,840) -4.9
General and Administrative Expenses
(4) (1,864) -2.4
Sales and Marketing Expenses (4) (1,121) -1.4
Total Operating Expenses (6,825) -8.8
Income from Operations 30,902 39.7
Non-Operating Income, Net 1,417 1.8
Investment Gains 600 0.8
Income before Income Tax 32,919 42.3
Income Tax (Expenses) Benefits (1,855) -2.4
Net Income Before Cumulative Effect
of Changes in Accounting Principles 31,064 39.9
Cumulative Effect of Changes in
Accounting Principles (Net of Tax) 1,607 2.1
Net Income 32,671 42.0
Minority Interest (64) -0.1
Net Income Attributable to
Shareholders of
the Parent 32,607 41.9
Earnings per Share - Diluted $1.26 --
Earnings per ADR - Diluted (2) $6.32 --
Weighted Average Outstanding Shares -
Diluted ('M) (3) 25,805 --
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended March 31, 2007, December 31, 2006,
and March 31, 2006
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S.Dollars (USD)) (1)
Except for Per Share Amounts and Shares Outstanding)
QoQ YoY
Amount % Amount %
Net Sales ($10,066) -13.4 ($12,953) -16.6
Cost of Sales 223 -0.6 (164) 0.4
Gross Profit (9,843) -28.6 (13,117) -34.8
Operating Expenses
Research and Development Expenses (4) 193 -4.6 (102) 2.7
General and Administrative Expenses(4) 215 -10.2 (38) 2.0
Sales and Marketing Expenses (4) (95) 11.9 232 -20.7
Total Operating Expenses 313 -4.4 92 -1.3
Income from Operations (9,530) -34.8 (13,025) -42.1
Non-Operating Income, Net 117 6.9 413 29.2
Investment Gains (27) -7.1 (239) -39.9
Income before Income Tax (9,440) -32.0 (12,851) -39.0
Income Tax (Expenses) Benefits 387 -25.9 748 -40.3
Net Income Before Cumulative Effect of
Changes in Accounting Principles (9,053) -32.3 (12,103) -39.0
Cumulative Effect of Changes in
Accounting Principles (Net of Tax) -- -- (1,607) -100.0
Net Income (9,053) -32.3 (13,710) -42.0
Minority Interest (20) 18.9 (58) 91.1
Net Income Attributable to Shareholders
of the Parent (9,073) -32.5 (13,768) -42.2
Earnings per Share - Diluted -$0.35 -32.5 -$0.53 -42.3
Earnings per ADR - Diluted (2) -$1.76 -32.5 -$2.67 -42.3
Weighted Average Outstanding Shares -
Diluted ('M) (3)
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S.
dollars at the weighted average rate of NTD32.888 for the first
quarter of 2007.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 25,805M
shares for 1Q06 after the retroactive adjustments for stock
dividends and stock bonus.
(4) Certain prior period balances have been reclassified to conform to
the current period presentation.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
For the Three Months Ended March 31, 2007, December 31, 2006,
and March 31, 2006
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD))(1)
1Q 2007 4Q 2006 1Q 2006
(Unaudited) (Unaudited)(Unaudited)
USD NTD NTD NTD
Cash Flows from Operating
Activities:
Net Income $573 $18,839 $27,912 $32,607
Net Income Attributable to
Minority Interest 4 122 103 64
Depreciation & Amortization 616 20,251 19,682 17,734
Deferred Income Tax (30) (972) 7 (609)
Equity in Earnings of Equity
Method Investees, Net (11) (361) (388) (600)
Changes in Working Capital &
Others 8 265 5,698 (282)
Net Cash Provided by Operating
Activities 1,160 38,144 53,014 48,914
Cash Flows from Investing
Activities:
Acquisitions:
Marketable Financial
Instruments (480) (15,796) (38,210) (32,731)
Investments Accounted for
Using Equity Method -- -- (2,433) --
Property, Plant and Equipment (424) (13,959) (17,580) (11,510)
Financial Assets Carried at
Cost (6) (212) (16) (122)
Proceeds from Disposal or
maturity of:
Marketable Financial
Instruments 586 19,259 31,539 19,931
Investments Accounted for
Using Equity Method -- -- -- --
Property, Plant and Equipment -- 1 54 462
Financial Assets Carried at
Cost -- 14 21 --
Others (84) (2,717) (1,750) (142)
Net Cash Used In Investing
Activities (408) (13,410) (28,375) (24,112)
Cash Flows from Financing
Activities:
Increase (Decrease) in Guarantee
Deposits (12) (388) 133 322
Proceeds from Exercise of Stock
Options 4 122 152 117
Bonus Paid to Directors and
Supervisors -- -- -- --
Repayment of Long-Term Bonds
Payable (76) (2,500) -- --
Cash Dividends Paid for Common
Stock -- -- -- --
Cash Bonus Paid to Employees -- -- -- --
Others (1) (28) 480 (323)
Net Cash (Used in) Provided by
Financing Activities (85) (2,794) 765 116
Net Increase in Cash and Cash
Equivalents 667 21,940 25,404 24,918
Effect of Exchange Rate Changes and
Others 15 497 (470) (151)
Cash and Cash Equivalents at
Beginning of Period 3,583 117,837 92,903 96,484
Cash and Cash Equivalents at End of
Period $4,265 $140,274 $117,837 $121,251
Note: (1) Amounts in New Taiwan dollars have been translated into U.S.
dollars at the weighted average rate of NTD32.888 for the
three months ended March 31, 2007.
Safe Harbor Notice:
The statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. TSMC cautions readers that forward-looking statements are subject to significant risks and uncertainties and are based on TSMC's current expectations. Actual results may differ materially from those contained in such forward-looking statements for a variety of reasons including, among others, risks associated with cyclicality and market conditions in the semiconductor industry; demand and supply for TSMC's foundry manufacturing capacity in particular and for foundry manufacturing capacity in general; intense competition; the failure of one or more significant customers to continue to place the same level of orders with us; TSMC's ability to remain a technological leader in the semiconductor industry; TSMC's ability to manage its capacity; TSMC's ability to obtain, preserve and defend its intellectual property rights; natural disasters and other unexpected events which may disrupt production; and exchange rate fluctuations. Additional information as to these and other risk factors that may cause TSMC's actual results to differ materially from TSMC's forward-looking statements may be found in TSMC's Annual Report on Form 20-F, filed with the United States Securities and Exchange Commission (the "SEC") on April 20, 2007, and such other documents as TSMC may file with, or submit to, the SEC from time to time. Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
CONTACT
Elizabeth Sun / Harrison Hsueh / Julie Wei
Investor Relations Division
TSMC
Email: invest@tsmc.com
Tel: +886-3-568-2085/ 2088/ 2086