UMC experiences robust customer demand while optimizing product mix to boost ROE
TAIPEI, Taiwan, April 28 /PRNewswire-Asia/ --
First Quarter 2010 Overview(1):
-- Revenue decreased 3.7% QoQ to NT$26.72 billion (US$842 million)
-- Gross margin of 24.6%, operating margin of 12.7%
-- Utilization rate was 88%
-- Net income of NT$3.48 billion (US$110 million)
-- Earnings per share of NT$0.28, earnings per ADS of US$0.044
(1) Unless otherwise stated, all financial figures discussed in this
announcement are prepared in accordance with ROC GAAP, which differ in
some material respects from generally accepted accounting principles
in the United States. They are un-audited, unconsolidated, and
represent comparisons among the three-month period ending March 31,
2010, the three-month period ending December 31, 2009, and the
equivalent three-month period that ended March 31, 2009. For all 1Q10
results, New Taiwan Dollar (NT$) amounts have been converted into U.S.
Dollars at the March 31, 2010 exchange rate of NT$31.74 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 2010.
Revenue decreased 3.7% QoQ to NT$26.72 billion, from NT$27.75 billion in 4Q09, but increased 147% YoY, from NT$10.84 billion in 1Q09. Gross margin was 24.6%, operating margin was 12.7%, net income was NT$3.48 billion, and earnings per ordinary share were NT$0.28.
Dr. Shih-Wei Sun, CEO of UMC, said, "Shipment volume for the first quarter of 2010 achieved a record high of 1,033 thousand 8-inch equivalent wafers, and capacity utilization rose to 88%. We continued to experience robust demand, with average selling price falling slightly compared to the previous quarter only because we focused more on supporting our customers' short-term product mix to strengthen our long-term partnerships. At the same time, UMC continued to work with customers to migrate products and technologies in alignment with the high-end process capacity that is slated to become more readily available from the second quarter onwards. As UMC continues to optimize sales, capacity mix, and business composition, we anticipate revenues and profits to continue on an upward trajectory, with the share of revenue contributed by 65nm and below technologies to grow significantly. UMC optimistically anticipates continued growth momentum; meanwhile, we will closely monitor the strength of that momentum within the overall economic context, especially in the second half of the year, to ensure that we respond prudently."
Dr. Sun continued, "UMC's internally developed high-performance 40nm logic process has demonstrated steadily higher yields for customers' products, and our 45nm low-power process has also smoothly ramped up to mass production. Many of our high-performance and low-power 40nm customers have achieved product verification with us, and we will continue to support more customers' design tape-outs. Our development of 28nm gate-last high-k/metal-gate (HK/MG) technology has been progressing well, with plans to achieve IP pilot capabilities at the end of 2010. Since early this year, we also began to work with customers on planning and initial development of advanced 20nm technology."
"As technologies advance, UMC will continue to invest CAPEX in augmenting high-end and specialty technology capacities each quarter to serve our customers. Our 65/55nm capacity at Fab12i in Singapore will increase substantially beginning in Q2. At Fab12A in the Tainan Science Park, we plan to pull in the timeframe of Phase 3 readiness, so that cleanroom related facilities and equipment installation will be completed by Q3, with production lines running in Q4. We have fully devoted our efforts to satisfying our customers' needs and creating win-win scenarios while pursuing long-term ROE growth."
Dr. Sun emphasized, "Soon to be celebrating our 30th anniversary, UMC has always committed itself to investing in Taiwan as its base in establishing a global presence. In preparation for future expansion, we began the Tainan Science Park project to not only invest aggressively in broadening our capacity offerings, but also to establish a new training center devoted to attracting and training the industry's top talents, further demonstrating our company's commitment to sustainable growth."
Summary of Operating Results
Operating Results
QoQ % YoY %
(Amount: NT$ million) 1Q10 4Q09 change 1Q09 change
Revenue 26,715 27,746 (3.7) 10,838 146.5
Gross Profit (Loss) 6,559 7,179 (8.6) (4,335) --
Operating Expenses (3,155) (3,435) (8.2) (2,982) 5.8
Operating Income (Loss) 3,404 3,744 (9.1) (7,317) --
Non-Operating Income
(Expenses) 197 700 (71.9) (843) --
Net Income (Loss) 3,482 4,396 (20.8) (8,160) --
EPS (NT$ per share) 0.28 0.35 -- (0.64) --
(US$ per ADS) 0.044 0.055 -- (0.101) --
Revenue decreased 3.7% QoQ to NT$26.72 billion from NT$27.75 billion in 4Q09, but increased 146.5% YoY from NT$10.84 billion in 1Q09. Gross profit was NT$6.56 billion, or 24.6% of revenue, compared to NT$7.18 billion, or 25.9% of 4Q09 revenue. Operating income for the quarter was NT$3.40 billion, or 12.7% of revenue, compared to NT$3.74 billion, or 13.5% of 4Q09 revenue. The decrease in revenue was mainly due to a decrease in blended ASP and appreciation of the NT dollar. Net income in 1Q10 was NT$3.48 billion, compared to NT$4.40 billion in 4Q09.
Earnings per ordinary share for the quarter were NT$0.28. Earnings per ADS(2) were US$0.044. The basic weighted average number of outstanding shares in 1Q10 was 12,638,040,544, compared with 12,686,971,252 shares in 4Q09 and 12,767,114,132 shares in 1Q09. The diluted weighted average number of outstanding shares was 12,834,956,316 in 1Q10, compared with 12,802,575,731 shares in 4Q09 and 12,767,114,132 shares in 1Q09. The fully diluted share count on March 31, 2010 was approximately 13,772,950,000. During the first quarter, UMC purchased 300 million treasury shares. On March 31, 2010, UMC held 522 million treasury shares acquired from the 13th and 14th share buy-back programs.
(2) One ADS represents five Taiwan-listed ordinary shares.
Detailed Financials Section
COGS & Expenses
QoQ % YoY %
(Amount: NT$ million) 1Q10 4Q09 change 1Q09 change
Revenue 26,715 27,746 (3.7) 10,838 146.5
CoGS (20,156) (20,567) (2.0) (15,173) 32.8
Depreciation (6,907) (7,155) (3.5) (6,973) (0.9)
Other Mfg. Costs (13,249) (13,412) (1.2) (8,200) 61.6
Gross Profit 6,559 7,179 (8.6) (4,335) --
Gross Margin (%) 24.6% 25.9% -- (40.0%) --
Total Operating Exp. (3,155) (3,435) (8.2) (2,982) 5.8
G&A (603) (644) (6.4) (529) 14.0
Sales & Marketing (545) (654) (16.7) (632) (13.8)
R&D (2,007) (2,137) (6.1) (1,821) 10.2
Operating Income 3,404 3,744 (9.1) (7,317) --
Depreciation within CoGS decreased to NT$6.91 billion. Other manufacturing costs decreased to NT$13.25 billion. Total operating expenses decreased 8.2% to NT$3.16 billion. General and Administration expenses decreased to NT$603 million due to a decrease in accrued bonus. Sales & marketing expenses decreased to NT$545 million, owing to a decrease in IP royalty fees. R&D expenses decreased to NT$2.01 billion mainly due to a decrease in accrued bonus as well. The total R&D expense was 7.5% of revenue in 1Q10.
Non-Operating Income (Expenses)
(Amount: NT$ million) 1Q10 4Q09 1Q09
Net Non-Operating Income (Exp.) 197 700 (843)
Net Interest Income (Exp.) 23 22 37
Net Investment Income (Loss) 8 923 (1,079)
Gain on Disposal of Investment 77 162 --
Exchange Gain (Loss) (30) (9) 255
Other 119 (398) (56)
Net non-operating income during 1Q10 was NT$197 million. The decrease of NT$915 million in net investment income was mainly due to a decrease in investment gain from equity method investment.
Cash Flow Summary
For the 3-Month For the 3-Month
(Amount: NT$ million) Period Ended Period Ended
Mar. 31, 2010 Dec. 31, 2009
Cash Flow from Operating 12,008 13,088
Net Income 3,482 4,396
Depreciation & Amortization 8,081 8,134
Changes in Working Capital 588 859
Other (143) (301)
Cash Flow from Investing (11,555) (12,076)
Capital Expenditures (10,000) (10,193)
Other (1,555) (1,883)
Cash Flow from Financing (4,732) 7,145
Financial Liabilities at Fair -- 1,341
Value through Profit or Loss
Long-Term Loans 100 5,279
Redemption of Long-Term -- (100)
Loans
Treasury Stock Sold to -- 623
Employees
Treasury Stock Acquired (4,844) --
Other 12 2
Effect of Exchange Rate 23 (1)
Net Cash Flow (4,256) 8,156
Net cash outflow was NT$4.26 billion in 1Q10. Operating cash inflow was NT$12.01 billion. The investing cash outflow primarily reflects the CAPEX in 1Q10 of NT$10.00 billion. The NT$4.73 billion of financing cash outflow was primarily from the purchase of treasury stock in the 14th share buy-back program. Free cash flow(3) for 1Q10 was NT$2.01 billion. Over the next 12 months, UMC expects to repay NT$7.50 billion in term loans.
(3) Free cash flow = Operating cash flow - Capital expenditures
Current Assets
(Amount: NT$ billion) 1Q10 4Q09 1Q09
Cash & Cash Equivalents 48.54 52.79 35.91
Notes & Accounts Receivable 16.95 17.06 6.08
Days Sales Outstanding 57 54 58
Inventories 9.48 8.78 7.05
Avg. Inventory Turnover 42 39 45
Total Current Assets 84.26 88.29 51.50
Cash and cash equivalents decreased to NT$48.54 billion due to purchase of treasury shares in 1Q10. During 1Q10, days sales outstanding increased to 57 days due to a decrease in net sales. Inventories increased due to an increase in raw materials and work-in-process as a result of better business outlook.
Liabilities
(Amount: NT$ billion) 1Q10 4Q09 1Q09
(Amount: NT$ billion)
Total Current Liabilities 34.66 34.03 10.95
Accounts Payable 5.26 5.05 2.58
Short-Term Credit / Bonds 12.89 12.80 0.00
Payable on Equipment 5.06 5.49 1.33
Other 11.45 10.69 7.04
Long-Term Liabilities 0.80 0.77 8.20
Total Liabilities 38.94 38.29 22.67
Debt to Equity 19% 18% 12%
Current liabilities increased to NT$34.66 billion, mainly due to an increase in unpaid employee bonus. Total liabilities increased to NT$38.94 billion in 1Q10. UMC's debt to equity ratio increased to 19%.
Analysis of Revenue(4)
(4) Revenue in this section represents wafer sales.
Revenue Breakdown by Region
Region 1Q10 4Q09 3Q09 2Q09 1Q09
North America 47 % 51 % 49 % 47 % 53 %
Asia Pacific 42 % 40 % 41 % 42 % 37 %
Europe 10 % 8 % 9 % 10 % 9 %
Japan 1 % 1 % 1 % 1 % 1 %
The percentage of revenue from the Asia Pacific region increased to 42% due to stronger Driver IC demand, while the percentage of revenue from the Europe regions increased to 10% due to increasing demand for communication chips.
Revenue Breakdown by Geometry
Geometry 1Q10 4Q09 3Q09 2Q09 1Q09
65nm and below 18 % 17 % 14 % 12 % 11 %
65nm < x <=90nm 22 % 25 % 26 % 27 % 27 %
90nm < x <=0.13um 25 % 23 % 21 % 19 % 16 %
0.13um < x <=0.18um 18 % 19 % 21 % 21 % 22 %
0.18um < x <=0.35um 11 % 11 % 13 % 16 % 18 %
0.5um and above 6 % 5 % 5 % 5 % 6 %
Revenue from 65nm and below business accounted for 18% of total revenue. The percentage of revenue from 0.13um business increased to 25%.
Revenue Breakdown by Customer Type
Customer Type 1Q10 4Q09 3Q09 2Q09 1Q09
Fabless 81 % 80 % 79 % 77 % 80 %
IDM 19 % 20 % 21 % 23 % 20 %
The percentage of revenue from fabless customers increased again to 81% in 1Q10 from 80% in 4Q09.
Revenue Breakdown by Application (1)
Application 1Q10 4Q09 3Q09 2Q09 1Q09
Computer 13 % 11 % 17 % 15 % 15 %
Communication 59 % 62 % 59 % 62 % 57 %
Consumer 26 % 25 % 23 % 21 % 25 %
Memory 1 % 0 % 0 % 1 % 1 %
Others 1 % 2 % 1 % 1 % 2 %
(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.
Revenue from the computer segment increased to 13% of total revenue in 1Q10 due to rebounding demand for PC peripheral chips and driver ICs.
Blended Average Selling Price Trend
The blended average selling price (ASP) decreased in US dollar terms during 1Q10, mainly due to product mix shift to larger geometry.
(To view ASP trend, visit http://www.umc.com/english/investors/1Q10_ASP_trend.asp )
Shipment and Utilization Rate(5)
(5) Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
Wafer Shipments
1Q10 4Q09 3Q09 2Q09 1Q09
Wafer Shipments
(8" K equivalents) 1,033 990 1,017 898 384
Quarterly Capacity Utilization Rate
1Q10 4Q09 3Q09 2Q09 1Q09
Utilization Rate 88 % 86 % 89 % 79 % 30 %
Total Capacity
(8" K equivalents) 1,154 1,132 1,152 1,151 1,151
Wafer shipments increased 4.3% sequentially to 1,033K in 1Q10, compared to 990K 8-inch equivalent wafers shipped in 4Q09. The overall utilization rate for the quarter was 88%.
Capacity(6)
(6) 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.
Capacity during the first quarter was 1,154K 8-inch equivalent wafers. The increase of total capacity is mainly due to expansion of 65nm and 40/45nm capacity in the 12-inch fabs. The estimated installed capacity in 2Q10 will increase to 1,181K 8-inch equivalent wafers due to the continuous expansion plan in Fab12i.
Annual Capacity in thousands of 8-inch wafer equivalents
Geometry
FAB (um) 2009 2008 2007 2006
Fab6A 6" 3.5 - 0.45 328 328 328 328
Fab8A 8" 0.5 - 0.25 816 816 816 816
Fab8C 8" 0.35 - 0.11 405 417 400 400
Fab8D 8" 0.13 - 0.09 267 257 260 252
Fab8E 8" 0.5 - 0.18 408 408 408 406
Fab8F 8" 0.18 - 0.11 381 372 372 372
Fab8S(1) 8" 0.18 - 0.11 300 291 276 276
Fab12A 12" 0.18 - 0.045 866 876 847 754
Fab12i(2) 12" 0.13 - 0.065 815 742 601 413
Total (3) 4,586 4,507 4,308 4,017
YoY Growth Rate 2% 5% 7% 4%
Quarterly Capacity in thousands of 8-inch wafer equivalents
FAB 2Q10E 1Q10 4Q09 3Q09
Fab6A 82 82 82 82
Fab8A 204 204 204 204
Fab8C 90 96 99 99
Fab8D 78 71 68 68
Fab8E 102 102 102 102
Fab8F 96 96 96 96
Fab8S 75 75 75 75
Fab12A 209 209 200 222
Fab12i 245 219 206 204
Total(3) 1,181 1,154 1,132 1,152
(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 since December 2004
that was merged into UMC in April 2005
(3) One 6-inch wafer is converted into 0.5625(6sq/8sq) 8-inch equivalent
wafer; one 12-inch wafer is converted into 2.25(12sq/8sq) 8-inch
equivalent wafers.
CAPEX
UMC Capital Expenditure by Year - in US$ billion
Year 2009 2008 2007 2006 2005 2004
CAPEX $0.55 $0.35 $0.9 $1.0 $0.7(1) $1.5
(1) 2005 CAPEX contained UMC 2005 full-year CAPEX and UMCi CAPEX during 1Q05.
2010 CAPEX Plan
8" 12" Total
UMC 10% 90% US$1.2 - 1.5 billion
The capital expenditure budget for 2010 remains unchanged. By the end of the first quarter, UMC's year-to-date CAPEX totaled US$315 million.
Recent Developments / Announcements
Apr. 20, 2010 UMC Expands Climate Change Policy and Carbon Emission
Reduction Goals
Mar. 17, 2010 UMC Board of Directors Announces Proposals for its Annual
Shareholders Meeting
-- The 2009 Business Report and Financial Statements.
-- Shareholder cash dividend of NT$6,233 million,
estimated at NT$0.50 per share. No stock dividend will
be issued.
-- Employee cash bonus of NT$965 million.
-- Amendments to the "Financial Derivatives Transaction
Procedures" and "Acquisition or Disposal of Assets
Procedure".
-- To release the Directors from non-competition
restrictions
-- The 2010 Annual General Meeting will be held at
9:00 AM, on Tuesday, June 15, 2010 at the UMC
Recreation Center in Hsinchu Science Park.
Mar. 05, 2010 Announcement regarding the Impact on the Company's
Financial and Business Status from the Earthquake
occurring on March 4th, 2010
Feb. 03, 2010 UMC 4Q2009 Financial Results
Jan. 20, 2010 Xilinx Virtex-6 FPGA Family Achieves Full Production
Qualification on UMC's High-Performance 40nm Process
Please visit UMC's website for further details regarding the above announcements.
Second Quarter of 2010 Outlook & Guidance
Quarter-over-Quarter Guidance:
-- Wafer shipment growth in the high-single-digit percentage range
-- Wafer ASP increase offset by currency appreciation
-- Capacity utilization rate in the high-90% range
-- Gross margin in the high-20% range
-- Growth momentum from all three segments, led by strong consumer sector
-- Revenue contribution from 65nm and below in the mid-20% range
-- 2010 CAPEX budget : US$1.2~1.5 billion
Conference Call / Webcast Announcement
Wednesday, April 28, 2010
Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)
Dial-in numbers and Access Codes:
USA Toll Free: 1 866 519 4004
UK Toll Free: 0808 234 6646
Singapore and Other Areas: +65 6723 9381
Access Code: UMC
A live webcast and replay of the 1Q10 results announcement will be available at http://www.umc.com under the "Investor Relations \ Investor Events" section.
About UMC
UMC (NYSE: UMC, TSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing services for applications spanning every major sector of the IC industry. UMC's customer-driven foundry solutions allow chip designers to leverage the strength of the company's leading-edge processes, which include production proven 65nm, 45/40nm, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab12A in Taiwan and Singapore-based Fab12i 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
This release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by use of words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts.
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, but not limited to: (i) our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international global business activities; (iv) our dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its registration statements on Form F-1, F-3, F-6 and 20-F, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
The financial statements included in this release are unaudited and unconsolidated, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between ROC GAAP and US GAAP.
This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
- FINANCIAL TABLES TO FOLLOW -
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Balance Sheet
As of March 31, 2010
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
March 31, 2010
US$ NT$ %
ASSETS
Current Assets
Cash and Cash Equivalents 1,529 48,536 19.7%
Financial assets at fair value
through profit or loss, current 65 2,054 0.8%
Available-for-sale financial
assets, current 177 5,609 2.3%
Notes & Accounts Receivable, net 534 16,945 6.9%
Inventories, net 299 9,479 3.8%
Other Current Assets 51 1,636 0.6%
Total Current Assets 2,655 84,259 34.1%
Non-Current Assets
Funds and Investments 2,124 67,404 27.3%
Property, Plant and Equipment, net 2,797 88,791 36.0%
Other Assets 199 6,318 2.6%
Total Non-Current Assets 5,120 162,513 65.9%
TOTAL ASSETS 7,775 246,772 100.0%
LIABILITIES
Current Liabilities
Financial liabilities at fair
value through profit or loss,
current 55 1,741 0.7%
Payables 620 19,665 8.0%
Current Portion of Long-term
Liabilities 406 12,886 5.2%
Other Current Liabilities 11 368 0.1%
Total Current Liabilities 1,092 34,660 14.0%
Non-Current Liabilities
Long-term Loans 25 797 0.3%
Other Liabilities 110 3,481 1.5%
Total Non-Current Liabilities 135 4,278 1.8%
TOTAL LIABILITIES 1,227 38,938 15.8%
STOCKHOLDERS' EQUITY
Capital Stock 4,092 129,879 52.6%
Additional Paid-in Capital 1,403 44,529 18.0%
Retained Earnings, Unrealized Gain
or Loss on Financial 1,265 40,160 16.3%
Instruments and Cumulative
Translation Adjustment
Treasury Stock (212) (6,734) (2.7%)
TOTAL STOCKHOLDERS' EQUITY 6,548 207,834 84.2%
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 7,775 246,772 100.0%
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
March 31, 2010 exchange rate of NT $31.74 per U.S. Dollar.
All figures are in ROC GAAP.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison
Three-Month Period Ended
March 31, 2010 March 31, 2009 %
US$ NT$ US$ NT$ Chg.
Net Sales 842 26,715 341 10,838 146.5%
Cost of Goods Sold (635) (20,156) (478) (15,173) 32.8%
Net Gross Profit (Loss) 207 6,559 (137) (4,335) (251.3%)
24.6% 24.6% (40.0%) (40.0%) --
Operating Expenses
- Sales & Marketing (17) (545) (20) (632) (13.8%)
- General & Administrative (19) (603) (17) (529) 14.0%
- Research & Development (64) (2,007) (57) (1,821) 10.2%
(100) (3,155) (94) (2,982) 5.8%
Operating Income (Loss) 107 3,404 (231) (7,317) (146.5%)
12.7% 12.7% (67.5%) (67.5%) --
Net Non-Operating Income (Expenses) 7 197 (26) (843) (123.4%)
Income (Loss) from continuing
operations before income tax 114 3,601 (257) (8,160) (144.1%)
13.5% 13.5% (75.3%) (75.3%) --
Income Tax Expense (4) (119) (0) (0) 100.0%
Net Income (Loss) 110 3,482 (257) (8,160) (142.7%)
13.0% 13.0% (75.3%) (75.3%) --
Earnings (Losses) per Share 0.009 0.28 (0.020) (0.64) --
Earnings (Losses) per ADS (2) 0.044 1.40 (0.101) (3.20) --
Weighted Average Number of Shares
Outstanding (in millions) -- 12,638 -- 12,767 --
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March
31, 2010 exchange rate of NT $31.74 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement (Continued)
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Quarter over Quarter Comparison
Three-Month Period Ended
March 31, 2010 December 31, 2009 %
US$ NT$ US$ NT$ Chg.
Net Sales 842 26,715 874 27,746 (3.7%)
Cost of Goods Sold (635) (20,156) (648) (20,567) (2.0%)
Net Gross Profit (Loss) 207 6,559 226 7,179 (8.6%)
24.6% 24.6% 25.9% 25.9% --
Operating Expenses
- Sales & Marketing (17) (545) (21) (654) (16.7%)
- General & Administrative (19) (603) (20) (644) (6.4%)
- Research & Development (64) (2,007) (67) (2,137) (6.1%)
(100) (3,155) (108) (3,435) (8.2%)
Operating Income (Loss) 107 3,404 118 3,744 (9.1%)
12.7% 12.7% 13.5% 13.5% --
Net Non-Operating Income (Expenses) 7 197 22 700 (71.9%)
Income (Loss) from continuing
operations before income tax 114 3,601 140 4,444 (19.0%)
13.5% 13.5% 16.0% 16.0% --
Income Tax Expense (4) (119) (1) (48) 147.9%
Net Income (Loss) 110 3,482 139 4,396 (20.8%)
13.0% 13.0% 15.8% 15.8% --
Earnings (Losses) per Share 0.009 0.28 0.011 0.35 --
Earnings (Losses) per ADS (2) 0.044 1.40 0.055 1.75 --
Weighted Average Number of Shares
Outstanding (in millions) -- 12,638 -- 12,687 --
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March
31, 2010 exchange rate of NT $31.74 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month Period Ended
March 31, 2010
US$ NT$ %
Net Sales 842 26,715 100.0%
Cost of Goods Sold (635) (20,156) (75.4%)
Net Gross Profit 207 6,559 24.6%
Operating Expenses
- Sales & Marketing (17) (545) (2.0%)
- General & Administrative (19) (603) (2.3%)
- Research & Development (64) (2,007) (7.6%)
(100) (3,155) (11.9%)
Operating Income 107 3,404 12.7%
Net Non-Operating Income (Expenses) 7 19 0.8%
Income from continuing operations
before income tax 114 3,601 13.5%
Income Tax Expense (4) (119) (0.5%)
Net Income 110 3,482 13.0%
Earnings per Share 0.009 0.28 --
Earnings per ADS (2) 0.044 1.40 --
Weighted Average Number of Shares
Outstanding (in millions) -- 12,638 --
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
March 31, 2010 exchange rate of NT $31.74 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement (Continued)
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Year Ended
March 31, 2010
US$ NT$ %
Net Sales 842 26,715 100.0%
Cost of Goods Sold (635) (20,156) (75.4%)
Net Gross Profit 207 6,559 24.6%
Operating Expenses
- Sales & Marketing (17) (545) (2.0%)
- General & Administrative (19) (603) (2.3%)
- Research & Development (64) (2,007) (7.6%)
(100) (3,155) (11.9%)
Operating Income 107 3,404 12.7%
Net Non-Operating Income (Expenses) 7 197 0.8%
Income from continuing operations
before income tax 114 3,601 13.5%
Income Tax Expense (4) (119) (0.5%)
Net Income 110 3,482 13.0%
Earnings per Share 0.009 0.28 --
Earnings per ADS (2) 0.044 1.40 --
Weighted Average Number of Shares
Outstanding (in millions) -- 12,638 --
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
March 31, 2010 exchange rate of NT $31.74 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Statement of Cash Flows
For The Year Ended March 31, 2010
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
Cash flows from operating activities:
Net Income 110 3,482
Depreciation & Amortization 255 8,081
Gain on recovery in market value
and obsolescence of inventories (4) (117)
Cash dividends received under the
equity method 2 49
Investment loss accounted for
under the equity method 4 136
Gain on valuation of financial
assets and liabilities (8) (263)
Gain on disposal of investments (2) (77)
Gain on disposal of property,
plant and equipment (0) (5)
Exchange gain on financial assets
and liabilities 0 8
Exchange gain on long-term
liabilities (1) (40)
Amortization of bond discounts 2 56
Amortization of deferred income (2) (50)
Compensation cost of Share-Based
payment 5 154
Changes in assets, liabilities
and others 17 594
Net cash provided by operating activities 378 12,008
Cash flows from investing activities:
Proceeds from disposal of
available-for-sales financial assets 4 116
Acquisition of long-term
investments accounted for under
the equity method (47) (1,500)
Proceeds from liquidation of
long-term investments 0 10
Acquisition of property, plant
and equipment (315) (10,000)
Proceeds from disposal of
property, plant and equipment 0 10
Increase in deferred charges (6) (187)
Increase in other assets - others (0) (4)
Net cash used in investing activities (364) (11,555)
Cash flows from financing activities:
Proceeds from long-term Loans 3 100
Exercise of employee stock options 0 3
Purchase of treasury stock (153) (4,844)
Disposal of treasury stock 0 7
Increase in deposits-in 0 2
Net cash used in financing activities (150) (4,732)
Effect of exchange rate changes on
cash and cash equivalents 2 23
Net increase in cash and cash equivalents (134) (4,256)
Cash and cash equivalents at
beginning of period 1,663 52,792
Cash and cash equivalents at end of
period 1,529 48,536
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
March 31, 2010 exchange rate of NT $31.74 per U.S. Dollar.
All figures are in ROC GAAP.
Contacts:
Phil Lee / Tien Yu Tseng
UMC, Investor Relations
Tel: +886-2-2700-6999 ext. 6957
Email: phil_lee@umc.com / tien_yu_tseng@umc.com