Anticipates a Gradual Recovery in 2Q07
TAIPEI, Taiwan, May 2 /Xinhua-PRNewswire-FirstCall/ --
First Quarter 2007 Overview (Note 1):
-- Revenue declined 11.8% sequentially to NT$23.03 billion (US$696
million)
-- Net income was NT$1.46 billion (US$44 million)
-- Revenue from 90nm technology and below was 21% of total revenue
-- EPS of NT$0.08; EPADS of US$0.012
Note 1: Unless otherwise stated, all financial figures discussed in this
announcement are prepared in accordance with ROC GAAP, which
differ in some material respects from generally accepted
unconsolidated, and represent comparisons among the three-month
period ending March 31, 2007, the three-month period ending
December 31, 2006, and the equivalent three-month period that
ended March 31, 2006. For all 1Q07 results, New Taiwan Dollar
(NT$) amounts have been converted into U.S. Dollars at the March
31, 2007 exchange rate of NT$33.09 per U.S. Dollar.
United Microelectronics Corporation (NYSE: UMC; TSE: 2303) ("UMC" or "the Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the first quarter of 2007.
"1Q07 was a challenging quarter for UMC. Our results reflected the anticipated soft demand caused by the industry-wide inventory correction," said UMC Chairman and CEO, Dr. Jackson Hu.
Dr. Hu continued, "For Q2, we have noticed that customers' inventory levels have been continuously going down. Starting from June, demand for communications applications such as cell phone and consumer applications including DTV and panel driver ICs has picked up strongly. Demand for the computer segment is also starting to recover, although it is not as strong as the other two segments yet. If the demand continues to remain as strong as we are seeing now, Q3 revenue will be very strong, which will significantly improve the overall bottom line."
"As far as new technology development is concerned, multiple 65nm programs are moving forward smoothly. Yield improvement is extremely encouraging. Besides the existing 65nm products that have been in production, additional business contributions from this technology node will start to come in later this year. Furthermore, we are working with multiple customers to prepare IP for 45nm technologies. We expect to have multiple product tape-outs in Q3 this year and to have working prototypes in Q4, 2007. "
"Particularly noteworthy is the fact that more and more IDMs are becoming fab-lite or fabless. This trend will help expand business for the foundries. Specifically, It will help UMC diversify into other product areas, such as CPU and memory. Currently, we are working with many customers to explore mutual beneficial opportunities in these areas. This trend will allow us to collaborate with our IDM customers more closely in developing future technologies such as 45nm and 32nm. As usual, our industry is full of challenges and opportunities. We are optimistic about the foundry industry's future as well as UMC's own business outlook."
Summary of Operating Results
Operating Results
QoQ % YoY %
(Amount: NT$ million) 1Q07 4Q06 change 1Q06 change
Revenue 23,025 26,112 (11.8) 24,384 (5.6)
Gross Profit 3,676 5,453 (32.6) 3,255 12.9
Operating Expenses (3,658) (4,081) (10.4) (3,170) 15.4
Operating Income 18 1,372 (98.7) 85 (78.8)
Non-op. Income
(Expenses) 1,719 5,288 (67.5) 14,090 (87.8)
Net Income 1,459 5,689 (74.4) 12,286 (88.1)
EPS (NT$ per share) 0.08 0.33 -- 0.66 --
(US$ per ADS) 0.012 0.050 -- 0.100 --
UMC's revenue totaled NT$23.03 billion in 1Q07, a 11.8% quarter-over-quarter decrease from NT$26.11 billion in 4Q06, and a 5.6% decrease year-over-year from NT$24.38 billion in 1Q06. Gross profit for the quarter was NT$3.68 billion, or 16.0% of revenue, compared to NT$5.45 billion, or 20.9% of revenue in 4Q06. The decline in gross margin was mainly attributed to the decrease in revenue and lower capacity utilization rate in 1Q07. Operating income decreased 98.7% sequentially and 78.8% from 1Q06 to NT$18 million. Net income in 1Q07 was NT$1.46 billion, a sequential decrease of 74.4% from 4Q06 and an 88.1% decrease over 1Q06.
Earnings per ordinary share (EPS) for the quarter were NT$0.08. Earnings per ADS (EPADS) were US$0.012. This compares with 4Q06 EPS of NT$0.33 and EPADS of US$0.050. One ADS represents five Taiwan-listed ordinary shares. The basic weighted average number of outstanding shares in 1Q07 was 17,775,610,526, compared with 17,730,038,769 shares in 4Q06 and 18,691,630,516 shares in 1Q06. The diluted weighted average number of outstanding shares was 17,904,075,495 in 1Q07, compared with 18,355,281,822 shares in 4Q06 and 19,312,316,024 shares in 1Q06. The fully diluted share count on March 31, 2007 was 19,212,513 thousand. On March 31, 2007, UMC still held 1,342,067 thousands treasury shares, which were acquired from previous buy-back programs. The increase in basic weighted average outstanding shares in 1Q07 was due to new share issuance for the exercise of employee stock options.
Detailed Financials Section
COGS & Expenses
QoQ % YoY %
(Amount: NT$ million) 1Q07 4Q06 change 1Q06 change
Revenue 23,025 26,112 (11.8) 24,384 (5.6)
COGS (19,349) (20,659) (6.3) (21,129) (8.4)
Depreciation (7,649) (8,569) (10.7) (10,566) (27.6)
Other Mfg. Costs (11,700) (12,090) (3.2) (10,563) 10.8
Gross Profit 3,676 5,453 (32.6) 3,255 12.9
Gross Margin (%) 16.0% 20.9% -- 13.3% --
Total Operating Exp. (3,658) (4,081) (10.4) (3,170) 15.4
G&A (678) (840) (19.3) (532) 27.4
Sales & Marketing (650) (546) 19.0 (612) 6.2
R&D (2,330) (2,695) (13.5) (2,026) 15.0
Operating Income 18 1,372 (98.7) 85 (78.8)
Operating Margin (%) 0.1% 5.3% -- 0.3% --
Depreciation and amortization totaled NT$9.19 billion in 1Q07, compared to NT$10 billion in 4Q06. Depreciation within COGS decreased 10.7% to NT$7.65 billion, mainly due to the decreasing depreciation from 8" fabs. Total operating expenses decreased 10.4% to NT$3.66 billion. This was primarily due to less R&D spending on 90nm technology and audit fees for US GAAP and SOX 404 compliance. The R&D expense was 10.1% of revenue in 1Q07.
Non-operating Income (Expenses)
(Amount: NT$ million) 1Q07 4Q06 1Q06
Net Non-operating Income (Exp.) 1,719 5,288 14,090
Net Interest Income (Expense) 260 264 137
Net Investment Income (Loss) 109 560 (108)
Gain on Disposal of Investment 1,624 4,772 13,915
Exchange Gain (Loss) 17 114 42
Others (291) (422) 104
Net non-operating income was NT$1.72 billion. The investment disposal gains were NT$1.62 billion, including a NT$937 million gain from the 3-in-1 merger of Epistar/Epitech/Highlink. Net investment income was NT$109 million, which consisted of NT$697 million of investment income accounted for under the equity method, and NT$588 million of loss on valuation of financial assets in 1Q07.
Cash Flow Summary
For the 3-Month For the 3-Month
(Amount: NT$ million) Period Ended Period Ended
Mar. 31, 2007 Dec. 31, 2006
Cash Flow from Operations 9,732 14,324
Net Income (Loss) 1,459 5,689
Depreciation & Amortization 9,192 10,003
Changes in working capital (192) 3,843
Others (727) (5,211)
Cash Flow from Investing (12,235) (9,594)
Capital Expenditures (12,521) (12,485)
Others 286 2,891
Cash Flow from Financing 188 (4,276)
Effect of Exchange Rate (91) (63)
Net Cash Flow (2,406) 391
The net cash outflow was NT$2.41 billion in 1Q07. Operating cash inflow was NT$9.73 billion, a NT$4.59 billion sequential decrease, which reflected our soft business in 1Q07. The investing cash outflow primarily reflects the NT$12.52 billion of CAPEX in 1Q07. The NT$188 million of financing cash inflow was due to the exercise of employee stock options. Over the next 12 months, the company expects to repay NT$2.25 billion in corporate bonds.
Current Assets
(Amount: NT$ billion) 1Q07 4Q06 1Q06
Cash & Cash Equivalents 80.99 83.40 96.37
Notes & Accounts Receivable 12.85 12.37 11.80
Days Sales Outstanding 50 47 45
Inventory 9.96 10.12 9.61
Avg. Inventory Turnover 48 47 43
Total Current Assets 115.43 118.43 126.27
Cash and cash equivalents decreased by NT$2.41 billion to NT$80.99 billion, mainly due to flat CAPEX spending but less operating cash inflow in 1Q07. The increase in notes and accounts receivable reflect a one-time payment rule change for certain customers. Days sales outstanding(Note 2) increased to 50 days, and average inventory turnover increased to 48 days.
Note 2: Days Sales Outstanding = 365/﹝ (Operating revenues for three-
month period end *4)/﹝ (Beginning NR&AR balance, net + Ending
NR&AR balance, net)/2﹞﹞
Average Inventory Turnover = 365/﹝(COGS for three-month period
end *4)/﹝(Beginning Inventory balance, net + Ending Inventory
balance, net)/2﹞﹞
Liabilities
(Amount: NT$ billion) 1Q07 4Q06 1Q06
Total Current Liabilities 41.81 30.06 29.54
Accounts Payable 4.65 4.02 4.19
Short-term Credit / Bonds 17.83 5.36 10.25
Others 19.33 20.68 15.10
Long-term Liabilities 17.99 30.38 35.68
Total Liabilities 63.41 64.06 68.85
Debt to Equity 22% 22% 24%
Total liabilities slightly decreased to NT$63.41 billion in 1Q07, mainly because AUO EB bondholders' exercise of the conversion that reduced NT$0.19 billion of outstanding balance. UMC's Debt to Equity ratio was 22% at the end of 1Q07.
Analysis of Revenue (Note 3)
Revenue Breakdown by Region
Region 1Q07 4Q06 3Q06 2Q06 1Q06
North America 47% 53% 60% 51% 46%
Asia Pacific 43% 37% 27% 35% 43%
Europe 7% 7% 10% 11% 9%
Japan 3% 3% 3% 3% 2%
The percentage of revenue from the Asia Pacific region grew to 43% in 1Q07 as their demand was relatively stronger than that of North American customers. The percentage of revenue from Europe and Japan remained flat over the quarter.
Revenue Breakdown by Geometry
Geometry 1Q07 4Q06 3Q06 2Q06 1Q06
< =90nm 21% 21% 21% 16% 13%
0.13um 16% 20% 25% 22% 20%
0.15um 11% 9% 7% 9% 12%
0.15um< x < =0.18um 19% 18% 19% 20% 21%
0.18um< x < =0.25um 6% 6% 6% 6% 5%
0.25um< x < =0.35um 19% 17% 13% 18% 21%
0.5um and above 8% 9% 9% 9% 8%
The percentage of revenue from leading-edge 65nm and 90nm sales remained flat overall. The percentage of revenue from 0.13um decreased to 16% mainly due to soft demand from communication customers.
Revenue Breakdown by Customer Type
Customer Type 1Q07 4Q06 3Q06 2Q06 1Q06
Fabless 6% 63% 56% 63% 73%
IDM 24% 37% 44% 37% 27%
System 0% 0% 0% 0% 0%
The contribution from IDM customers decreased to 24% in 1Q07 from 37% in 4Q06 due to inventory adjustments.
Revenue Breakdown by Application (1)
Application 1Q07 4Q06 3Q06 2Q06 1Q06
Computer 18% 15% 15% 14% 19%
Communication 56% 61% 55% 56% 51%
Consumer 24% 22% 28% 28% 28%
Memory 1% 1% 1% 1% 1%
Others 1% 1% 1% 1% 1%
Revenue from the communication market decreased to 56% of total revenue in 1Q07, primarily due to inventory digestion by some communication customers. Revenue from the computer segment increased to 18% of total revenue in 1Q07 because of relatively better demand from PC chipset customers.
(1) Computer consists of ICs such as HDD controllers, DVD-ROM/CD-ROM
drives ICs, LCD drivers, graphic processors, and PDAs.
Communication consists of xDSL, DSP, WLAN, LAN controllers,
handset components, caller ID devices, etc. Consumer consists of
ICs used for DVD players, game consoles, digital cameras, smart
cards, toys, etc. Memory consists of DRAM, SRAM, Flash, EPROM, ROM,
and EEPROM.
Note 3: Revenue in this section represents wafer sales.
Blended Average Selling Price Trend
The blended average selling price (ASP) for the quarter was down by 5% in US dollar terms compared with the previous quarter. This was mainly due to a wafer shipment mix issue: fewer 0.13um shipments but more shipments on matured technology nodes.
(To view ASP trend, visit http://www.umc.com/english/investors/1Q07_ASP_trend.asp )
Shipment and Utilization Rate (Note 4)
Wafer Shipments
1Q07 4Q06 3Q06 2Q06 1Q06
Wafer Shipments 732 783 799 786 754
('000 8-inch eq.)
Quarterly Capacity Utilization Rate
1Q07 4Q06 3Q06 2Q06 1Q06
Utilization Rate 74%(1) 76% 82% 80% 79%(2)
Total Capacity 1,043 1,020 1,010 1,002 985
('000 8-inch eq.)
Wafer shipments declined by 6.5% sequentially to 732 thousand 8-inch equivalent wafers from 783 thousand wafers. The utilization rate for the quarter was 74%, after factoring in a 5% productivity loss due to scheduled annual maintenance.
(1) 1Q07 utilization rate was calculated based on 1Q07 available
capacity, which is about 95% of total capacity after factoring in a
5% productivity loss due to annual scheduled maintenance.
(2) 1Q06 utilization rate was calculated based on 1Q06 available
capacity, which is about 95% of total capacity after factoring in a
5% productivity loss due to annual scheduled maintenance.
Note 4: Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
Capacity (Note 5)
Capacity for 1Q07 was 1,043 thousand 8-inch equivalent wafers. The incremental increase in capacity of 23 thousand 8-inch equivalent wafers during 1Q07 was due to capacity expansion at Fab 12A and Fab 12i. UMC's estimated capacity in 2Q07 will increase to 1,065 thousand 8-inch equivalent wafers, primarily due to additional 300mm capacity from Fab 12A and Fab 12i.
Annual Capacity in thousands of 8-inch wafer equivalents
FAB Geometry 2006 2005 2004 2003
(um)
Fab 6A 6" 3.5 - 0.45 328 344 346 352
Fab 8AB 8" 0.5 - 0.25 816 816 796 801
Fab 8C 8" 0.35 - 0.15 400 401 386 325
Fab 8D 8" 0.18 - 0.09 252 274 256 238
Fab 8E 8" 0.5 - 0.18 406 404 401 354
Fab 8F 8" 0.25 - 0.15 372 378 349 342
Fab 8S (1) 8" 0.25 - 0.15 276 278 131 0
Fab 12A 12" 0.18 - 0.065 754 597 392 234
Fab 12i (2) 12" 0.13 - 0.065 413 363 101 0
Total (3) 4,017 3,855 3,158 2,646
YoY Growth Rate 4% 22% 19% 3%
Quarterly Capacity in thousands of 8-inch wafer equivalents
FAB 2Q07E 1Q07 4Q06 3Q06
Fab 6A 82 82 82 82
Fab 8AB 204 204 204 204
Fab 8C 100 100 100 100
Fab 8D 65 65 63 63
Fab 8E 102 102 102 102
Fab 8F 93 93 93 93
Fab 8S 69 69 69 69
Fab 12A 210 200 193 192
Fab 12i 140 128 114 105
Total (3) 1,065 1,043 1,020 1,010
(1) Former fab of SiSMC, which was acquired from Silicon Integrated
Systems in July 2004.
(2) Former fab of UMCi, a UMC wholly owned subsidiary in December 2004
that was merged into UMC in April 2005
(3) One 6-inch wafer is converted into 0.5625(62/82) 8-inch equivalent
wafer; one 12-inch wafer is converted into 2.25(122/82) 8-inch
equivalent wafers.
Note 5: Estimated capacity numbers are based on calculated maximum
output rather than designed capacity. The actual capacity
numbers may differ depending upon equipment delivery schedules,
pace of migration to more advanced process technologies, and
other factors affecting production ramp up.
CAPEX
UMC Capital Expenditure by Year - in US$ billion
Year 2006 2005 2004 2003 2002 2001
CAPEX $1.0 $0.7(1) $1.5 $0.4 $0.8 $1.1
2007 CAPEX
8" fab 12" fab 12" R&D Total
UMC 2% 83% 15% US$1~1.2billion
The amount of capital expenditure spent in 1Q07 was US$378 million. UMC's 2007 CAPEX is still expected to be between US$1 billion and US$1.2 billion.
(1) 2005 CAPEX contained UMC 2005 full year CAPEX and UMCi CAPEX during
1Q05.
Recent Developments / Announcements
Mar. 15, 2007 UMC Expands Global Customer Service Network with India
Office
Mar. 15, 2007 UMC Board of Directors Announces Proposals for its
Annual Shareholders Meeting
A brief summary of the proposals is as follows:
-- Cash dividend of NT$12,461,529,283, estimated at
NT$0.7 per share
-- Employee cash bonus of NT$2,324,119,405, 7.1% of net
income after tax
-- Proposal for the Company's capital reduction: a
capital reduction of NT$57,394 million with the
cancellation of 5,739 million of its outstanding
shares. Shareholders will receive approximately NT$3
for each of their shares held. Related procedures and
timetable will be further announced after the
approval from the 2007 AGM and then the Financial
Supervisory Commission.
-- The 2007 AGM will be held on June 11, 2007 at the UMC
Recreation Center in Hsinchu Science Park, Taiwan.
Feb. 07, 2007 UMC 4Q 2006 Financial Results
Please visit UMC's website http://www.umc.com/english/news/index.asp
for further details regarding the above announcements.
Second Quarter of 2007 Outlook & Guidance
Quarter-over-quarter Guidance:
-- Wafer shipments: to increase by 6-8% points
-- Wafer ASP in US$: flat from the previous quarter
-- Capacity utilization rates: approximately 75%
-- Profitability: slight improvement from the previous quarter
-- Percentage of 90nm & below revenues: approximately 20%
-- The communication segment is expected to be the strongest, followed
by the consumer and computer segments
-- 2007 capex budget: US$1.0-1.2 billion
Conference Call / Webcast Announcement
Wednesday, May 2, 2007
Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)
Dial-in numbers and Access Codes:
Asia/Europe: +1-617-213-8052
North America: 866-314-5232
Access Code: UMCCall
A live webcast and replay of the 1Q07 results announcement will be available at www.umc.com under the "Investor Relations \ Investor Events" section.
About UMC
UMC (NYSE: UMC; TSE: 2303) is a leading global semiconductor foundry that manufactures advanced process ICs for applications spanning every major sector of the semiconductor industry. UMC delivers cutting-edge foundry technologies that enable sophisticated system-on-chip (SoC) designs, including volume production 90nm, industry-leading 65nm, and mixed signal/RFCMOS. UMC's 10 wafer manufacturing facilities include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. The company employs approximately 12,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at http://www.umc.com .
Safe Harbor Statements
Except for statements in respect of historical matters, the statements in this release contain "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. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in 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: our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; the risks associated with international global business activities; our dependence upon key personnel; general economic and political conditions, including those related to the semiconductor, communications, consumer electronics and computer industries; possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; reduced end-user purchases relative to expectations and orders; fluctuations in foreign currency exchange rates; and those risks identified in the section entitled "Risk Factors" in UMC's Annual Report on Form 20-F ("20-F") for the year ended December 31, 2005 filed with the U.S. Securities and Exchange Commission on June 26, 2006.
The financial statements included in this release are reviewed and unconsolidated, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between ROC GAAP and U.S. GAAP, as described in note 34 to the financial statements on 20-F.
The forward-looking statements in this release reflect the current belief of UMC as of the date of this release and UMC undertakes no obligation to update these forward-looking statements for events or circumstances that occur after such date or to reflect the occurrence of unanticipated events.
- FINANCIAL TABLES TO FOLLOW -
UNITED MICROELECTRONICS CORPORATION
Condensed Unconsolidated Balance Sheet
As of March 31, 2007
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
March 31, 2007
US$ NT$ %
ASSETS
Current Assets
Cash and Cash Equivalents 2,448 80,989 22.7%
Financial assets at fair value
through profit or loss, current 228 7,554 2.1%
Notes & Accounts Receivable 388 12,851 3.6%
Inventories 301 9,957 2.8%
Other Current Assets 123 4,078 1.1%
Total Current Assets 3,488 115,429 32.3%
Non-Current Assets
Funds and Long-term Investments 2,562 84,782 23.7%
Property, Plant and Equipment 4,411 145,949 40.9%
Intangible Assets 113 3,745 1.0%
Other Assets 222 7,341 2.1%
Total Non-Current Assets 7,308 241,817 67.7%
TOTAL ASSETS 10,796 357,246 100.0%
LIABILITIES
Current Liabilities
Financial liabilities at fair
value through profit or loss,
current 30 1,003 0.3%
Payables 665 21,999 6.1%
Current Portion of Long-term
Liabilities 539 17,834 5.0%
Other Current Liabilities 29 972 0.3%
Total Current Liabilities 1,263 41,808 11.7%
Non-Current Liabilities
Bonds Payable 544 17,993 5.1%
Other Liabilities 109 3,613 1.0%
Total Non-Current Liabilities 653 21,606 6.1%
TOTAL LIABILITIES 1,916 63,414 17.8%
STOCKHOLDERS' EQUITY
Capital Stock 5,786 191,443 53.6%
Capital Reserve 2,048 67,780 18.9%
Retained Earnings, Unrealized Gain
on Financial Assets and
Translation Adjustment 1,934 64,004 17.9%
Treasury Stock (888) (29,395) -8.2%
TOTAL STOCKHOLDERS' EQUITY 8,880 293,832 82.2%
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 10,796 357,246 100.0%
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
March 31, 2007 exchange rate of NT$33.09 per U.S. Dollar.
All figures are in ROC GAAP.
UNITED MICROELECTRONICS CORPORATION
Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars
(US$)
Except Per Share and Per ADS Data
Year over Year Comparison
Three-Month Period Ended
March 31, 2007 March 31, 2006 %
US$ NT$ US$ NT$ Chg.
Net Sales 696 23,025 737 24,384 -5.6%
Cost of Goods Sold (585) (19,349) (639) (21,129) -8.4%
Net Gross Profit 111 3,676 98 3,255 12.9%
16.0% 16.0% 13.3% 13.3% --
Operating Expenses
- Sales & Marketing 20 650 19 612 6.2%
- General & Administrative 20 678 16 532 27.4%
- Research & Development 70 2,330 61 2,026 15.1%
110 3,658 96 3,170 15.4%
Operating Income (Loss) 1 18 2 85 -78.8%
0.1% 0.1% 0.3% 0.3% --
Net Non-Operating Income
(Expenses) 52 1,719 426 14,090 -87.8%
Income (Loss) from continuing
operations before income tax 53 1,737 428 14,175 -87.7%
7.5% 7.5% 58.1% 58.1% --
Income Tax (Expense) Benefit (9) (278) (21) (700) -60.3%
Income (Loss) from continuing
operations 44 1,459 407 13,475 -89.2%
Cumulative effect of changes in
accounting principles -- -- (36) (1,189) --
Net Income (Loss) 44 1,459 371 12,286 -88.1%
6.3% 6.3% 50.4% 50.4% --
Earnings per Share 0.002 0.08 0.020 0.66 --
Earnings per ADS (2) 0.012 0.40 0.100 3.30 --
Weighted Average Number of Shares
Outstanding (in millions) -- 17,776 -- 18,692 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
March 31, 2007 exchange rate of NT$33.09 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars
(US$)
Except Per Share and Per ADS Data
Quarter over Quarter Comparison
Three-Month Period Ended
March 31, December 31,
2007 2006 %
US$ NT$ US$ NT$ Chg.
Net Sales 696 23,025 789 26,112 -11.8%
Cost of Goods Sold (585) (19,349) (624) (20,659) -6.3%
Net Gross Profit 111 3,676 165 5,453 -32.6%
16.0% 16.0% 20.9% 20.9% --
Operating Expenses
- Sales & Marketing 20 650 17 546 19.0%
- General & Administrative 20 678 25 840 -19.3%
- Research & Development 70 2,330 82 2,695 -13.5%
110 3,658 124 4,081 -10.4%
Operating Income (Loss) 1 18 41 1,372 -98.7%
0.1% 0.1% 5.2% 5.3% --
Net Non-Operating Income
(Expenses) 52 1,719 160 5,288 -67.5%
Income (Loss) from continuing
operations before income tax 53 1,737 201 6,660 -73.9%
7.5% 7.5% 25.5% 25.5% --
Income Tax (Expense) Benefit (9) (278) (29) (971) -71.4%
Income (Loss) from continuing
operations 44 1,459 172 5,689 -74.4%
Cumulative effect of changes in
accounting principles -- -- -- -- --
Net Income (Loss) 44 1,459 172 5,689 -74.4%
6.3% 6.3% 21.8% 21.8% --
Earnings per Share 0.002 0.08 0.010 0.33 --
Earnings per ADS (2) 0.012 0.40 0.050 1.65 --
Weighted Average Number of Shares
Outstanding (in millions) -- 17,776 -- 17,730 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
March 31, 2007 exchange rate of NT$33.09 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month
Period Ended For the year Ended
March 31, 2007 March 31, 2007
US$ NT$ % US$ NT$ %
Net Sales 696 23,025 100.0% 696 23,025 100.0%
Cost of Goods Sold (585) (19,349) -84.0% (585) (19,349) -84.0%
Net Gross Profit 111 3,676 16.0% 111 3,676 16.0%
Operating Expenses
- Sales & Marketing 20 650 2.8% 20 650 2.8%
- General &
Administrative 20 678 3.0% 20 678 3.0%
- Research & Development 70 2,330 10.1% 70 2,330 10.1%
110 3,658 15.9% 110 3,658 15.9%
Operating Income (Loss) 1 18 0.1% 1 18 0.1%
Net Non-Operating Income
(Expenses) 52 1,719 7.4% 52 1,719 7.4%
Income (Loss) from
continuing operations
before income tax 53 1,737 7.5% 53 1,737 7.5%
Income Tax (Expense)
Benefit (9) (278) -1.2% (9) (278) -1.2%
Income (Loss) from
continuing operations 44 1,459 6.3% 44 1,459 6.3%
Cumulative effect of
changes in accounting
principles -- -- 0.0% -- -- 0.0%
Net Income (Loss) 44 1,459 6.3% 44 1,459 6.3%
Earnings per Share 0.002 0.08 -- 0.002 0.08 --
Earnings per ADS (2) 0.012 0.40 -- 0.012 0.40 --
Weighted Average Number
of Shares
Outstanding (in millions) -- 17,776 -- -- 17,776 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
March 31, 2007 exchange rate of NT$33.09 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Condensed Unconsolidated Statement of Cash Flows
For The Three Months Ended March 31, 2007
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
Cash flows from operating activities:
Net Income 44 1,459
Depreciation & Amortization 278 9,192
Bed debts reversal (0) (1)
Decline in market value and
obsolesence of inventories 12 399
Cash dividends received under the
equity method 10 354
Investment gain accounted for
under the equity method (21) (697)
Loss on valuation of financial
assets and liabilities 18 613
Gain on disposal of investments (49) (1,624)
Gain on disposal of property,
plant and equipment (0) (12)
Exchange loss on long-term
liabilities 8 255
Amortization of bond discounts 1 23
Amortization of deferred income (1) (37)
Change in assets and liabilities (6) (192)
Net cash provided from operating
activities 294 9,732
Cash flows from investing activities:
Acquisition of available-for-
sales financial assets (4) (152)
Proceeds from disposal of
available-for-sales financial
assets 14 474
Proceeds from disposal of held-
to-maturity financial assets 24 776
Acquisition of financial assets
measured at cost (1) (37)
Acquisition of long-term
investments accounted for the
equity method (9) (297)
Proceeds from disposal of long-
term investments accounted for
the equity method 5 156
Prepaid investment (5) (164)
Acquisition of property, plant
and equipment (378) (12,521)
Proceeds from disposal of
property, plant and equipment 0 7
Increase in deferred charges (15) (489)
Decrease in other assets - others 0 12
Net cash used in investing activities (369) (12,235)
Cash flows from financing activities:
Exercise of employee stock
options 6 188
Net cash used in financing activities 6 188
Effect of exchange rate changes on
cash and cash equivalents (3) (91)
Decrease in cash and cash equivalents (72) (2,406)
Cash and cash equivalents at
beginning of period 2,520 83,395
Cash and cash equivalents at end of
period 2,448 80,989
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
March 31, 2007 exchange rate of NT$ 33.09 per U.S. Dollar.
All figures are in ROC GAAP.
Contacts:
Bowen Huang / Dylan Lee
UMC, Investor Relations
Tel: +886-2-2700-6999 ext. 6957
Email: bowen_huang@umc.com
dylan_lee@umc.com
