Siliconware Precision Industries Reports a 14.4% Quarter-over-Quarter Decline in Revenues Resulting in Earnings per Share of NT$ -0.09 or Earnings per ADS of US$ -0.02 for First Quarter 2013

Diluted earnings per ordinary share for this quarter was NT$ -0.09, and diluted earnings per ADS was US$ -0.02.

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

Operating results review:

• For the first quarter of 2013, net revenues from IC packaging were NT$ 12,409 million and represented 90% of total net revenues. Net revenues from testing operations were NT$ 1,410 million and represented 10% of total net revenues.
• Cost of goods sold was NT$ 11,802 million, representing a decrease of 9.9% compared to the fourth quarter of 2012 and a decrease of 8.5% compared to the first quarter of 2012.
  • Raw materials costs were NT$ 5,483 million for the first quarter of 2013 and represented 39.7% of total net revenues, whereas raw materials costs were NT$ 6,176 million and represented 38.3% of total net revenues for the fourth quarter of 2012.
• Gross profit was NT$ 2,017 million for the first quarter of 2013, representing a gross margin of 14.6%, which decreased from a gross margin of 18.8% for the fourth quarter of 2012 and was down from 14.7% for the first quarter of 2012.   
• Total operating expenses for the first quarter of 2013 were NT$ 1,380 million, which included selling expenses of NT$ 179 million, administrative expenses of NT$ 506 million and R&D expenses of NT$ 695 million. Total operating expenses represented 10.0% of total net revenues for the first quarter of 2013.
• Operating income was NT$ 637 million for the first quarter of 2013, representing an operating margin of 4.6%, which decreased from 9.9% for the fourth quarter of 2012 and decreased from 6.8% for the first quarter of 2012.
• Non-operating items:
  • Our net currency exchange gain of NT$ 110 million for the first quarter of 2013 was mainly due to depreciation of foreign currency denominated liabilities as a result of a depreciation in the foreign currency exchange rate of Japanese Yen against NT dollar, our reporting currency. 
  • SPIL and its subsidiary Siliconware USA, Inc. have entered into a settlement agreement with Tessera. The settlement amount of US$ 30 million was recognized.  
• Net loss before tax was NT$ 203 million for the first quarter of 2013, which decreased from a net income before tax of NT$ 1,974 million for the fourth quarter of 2012 and decreased from a net income before tax of NT$ 1,080 million for the first quarter of 2012.
• Income tax expense was NT$ 89 million for the first quarter of 2013, compared with income tax expense of NT$ 384 million for the fourth quarter of 2012 and income tax expense of NT$ 189 million for the first quarter of 2012.
• Net loss was NT$ 292 million for the first quarter of 2013, which decreased from a net income of NT$ 1,590 million for the fourth quarter of 2012 and decreased from a net income of NT$ 891 million for the first quarter of 2012.
• Total number of shares outstanding was 3,078 million shares as of Mar 31,2013. Diluted earnings per ordinary share for this quarter was NT$ -0.09, or US$ -0.02 per ADS.  

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 17,413 million as of Mar 31, 2013 from NT$ 15,852 million as of Dec 31, 2012, and NT$ 17,201 million as of Mar 31, 2012. 
• Capital expenditures for the first quarter of 2013 totaled NT$ 3,016 million, which included NT$ 2,251 million for packaging equipment and NT$ 765 million for testing equipment.
• Total depreciation expenses for the first quarter of 2013 totaled NT$ 2,500 million, which included NT$ 1,901 million was from packaging operations and NT$ 599 million from testing operations.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 12,409 million for the first  quarter of 2013, which represented a decrease of NT$ 2,095 million or 14.4% compared to the fourth quarter of 2012.
• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 38%, 26% and 26%, respectively, of total net revenues for the first quarter of 2013.
• Capital expenditures for IC packaging operations totaled NT$ 2,251 million for the first quarter of 2013, which included NT$ 1,373 million for packaging and building construction and NT$ 878 million for wafer bumping operations.
• As of Mar 31, 2013 we had 7,805 wirebonders installed.

IC testing service:                     

• Net revenues from testing operations were NT$ 1,410 million for the first quarter of 2013, which represented a decrease of NT$ 232 million or 14.1% compared to the fourth quarter of 2012.
• Capital expenditures for testing operations totaled NT$ 765 million for the first quarter of 2013.
• As of Mar 31, 2013 we had 403 testers installed, of which 9 were added and 1 was disposed in the first 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 under TIFRS on a consolidated basis. The investment gains or losses of our company for the three months ended Mar 31, 2013 reflect our gains or losses attributable to the first quarter of 2013 unaudited financial results of several of our investees which are evaluated under the equity method. The consolidated financial data for our company for the three months ended Mar 31, 2013 is not necessarily indicative of the results that may be expected for any period thereafter.

Contact:

Siliconware Precision Industries Co., Ltd.  
No.45, Jieh Show Rd.     
Hsinchu Science Park, Hsinchu
Taiwan, 30056
www.spil.com.tw

Janet Chen, IR Director 
janet@spil.com.tw
+886-3-5795678#3675

Byron Chiang, Spokesperson
byronc@spil.com.tw
+886-3-5795678#3671