2Q16 28nm revenue more than doubled QoQ, foresee 3Q16 28nm
contribution to hit 20%
Second Quarter 2016 Overview1:
- Revenue: NT$37.00 billion (US$1.15 billion)
- Gross margin: 22.4%
- Foundry revenue from 28nm: 17%; Foundry operating margin: 7.1%
- Foundry capacity utilization rate: 89%
- Net income attributable to the stockholders of the parent: NT$2.58
billion (US$80.0 million)
- Earnings per share: NT$0.21; earnings per ADS: US$0.033
TAIPEI, Taiwan -- (Business Wire)
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303)
(“UMC” or “The Company”), a leading global semiconductor foundry, today
announced its consolidated operating results for the second quarter of
2016.
Second quarter consolidated revenue was NT$37.00 billion, up 7.5%
quarterly from NT$34.40 billion in 1Q16 and down 2.7% YoY from NT$38.01
billion in 2Q15. 2Q16 consolidated gross margin was 22.4%. Net income
attributable to the stockholders of the parent was NT$2.58 billion, with
earnings per ordinary share of NT$0.21.
Mr. Po-Wen Yen, CEO of UMC, said “In the second quarter of 2016, our
foundry revenue increased 7.5% sequentially to NT$36.87 billion. We
achieved foundry operating margin of 7.1%. Overall capacity utilization
was 89%, bringing wafer shipments to 1.51 million 8-inch equivalent
wafers. As the latest semi inventory cycle came to an end, 2Q16
reflected a return to semiconductor seasonality as chip demand improved.
As a result, UMC experienced a surge in 28nm business, especially from
communication customers. Many of the chips found in the newly released
smartphone models have adopted our 28nm solutions, which helped trigger
our 28nm revenue growth that began in 2Q16. For the consumer segment,
UMC has also delivered other 28nm volume production ICs in areas such as
DTV and set top box to help further boost 28nm utilization. The
widespread adoption of our 28nm process technologies underscores the
technology readiness and value that UMC provides to the IC industry.”
CEO Yen continued, “Looking into next quarter, we anticipate a slight
increase to our overall foundry revenue, with 28nm revenue contribution
expected to reach 20% or more. Our 40nm demand is also expected to
remain stable. As our advanced node performance remains on track, we do
anticipate a decline in 8” demand due to changes in customer mix and
market dynamics. While we continue to expand additional 28nm capacity at
Fab 12A in Tainan, UMC’s 12” Xiamen operations, 12X, is set to begin
pilot production. As such, UMC will accrue higher quarterly depreciation
and operating expenses. However, we expect our high 28nm utilization
rate and the revenue recognition when 12X enters production at year’s
end to somewhat offset a portion of the accrued depreciation and
operating expense. We foresee 12X to aggressively capitalize on the fast
growing Chinese semiconductor market and provide our customers with a
viable solution for local foundry services in China. We believe 12X will
play a key role as a critical manufacturing base as it ramps to economy
of scale”
Summary of Operating Results
Operating Results |
(Amount: NT$ million)
|
| 2Q16 |
| 1Q16 |
| QoQ % change |
| 2Q15 |
| YoY % change |
Net Operating Revenues
|
|
36,997
|
|
34,404
|
|
7.5
|
|
38,012
|
|
(2.7)
|
Gross Profit
| |
8,285
| |
5,034
| |
64.6
| |
8,723
| |
(5.0)
|
Operating Expenses
| |
(5,859)
| |
(5,065)
| |
15.7
| |
(4,864)
| |
20.5
|
Net Other Operating Income and Expenses
| |
23
| |
15
| |
53.3
| |
17
| |
35.3
|
Operating Income (Loss)
| |
2,449
| |
(16)
| |
-
| |
3,876
| |
(36.8)
|
Net Non-Operating Income and Expenses
| |
(650)
| |
46
| |
-
| |
1,304
| |
-
|
Net Income Attributable to Stockholders of the Parent
| |
2,583
| |
210
| |
1,130.0
| |
4,600
| |
(43.8)
|
EPS (NT$ per share)
| |
0.21
| |
0.02
| | | |
0.37
| | |
(US$ per ADS)
|
|
0.033
|
|
0.003
|
|
|
|
0.057
|
|
|
Consolidated revenues in 2Q16 increased 7.5% sequentially to NT$37.00
billion, including NT$36.87 billion from the foundry segment, with 17%
of contribution from 28nm technologies. Gross profit reached NT$8.29
billion, or 22.4% of revenue, up 64.6% compared to 1Q16. Operating
expenses increased 15.7% sequentially to NT$5.86 billion, and net other
operating income was NT$23 million, leading to an operating income of
NT$2.45 billion. Net non-operating expenses was NT$650 million. Net
income attributable to stockholders of the parent in 2Q16 was NT$2.58
billion.
Earnings per ordinary share for the quarter was NT$0.21. Earnings per
ADS was US$0.033. The basic weighted average number of outstanding
shares in 2Q16 was 12,334,888,329, compared with 12,408,239,978 shares
in 1Q16 and 12,572,497,200 shares in 2Q15. The diluted weighted average
number of outstanding shares was 13,460,073,526 in 2Q16, compared with
12,492,270,589 shares in 1Q16 and 13,222,544,584 shares in 2Q15. The
fully diluted share count on June 30, 2016 was approximately
13,749,505,000. On June 30, 2016, UMC held 400 million treasury shares
acquired from the 16th and 17th share buy-back programs.
Detailed Financials Section
Consolidated revenues increased 7.5% sequentially to NT$37.00 billion,
driven by stronger demand for 28nm and 40nm shipments. Depreciation
increased 8.1% in 2Q16 mainly from 28nm capacity deployment. Other
manufacturing costs decreased 7.9% to NT$17.45 billion QoQ, since in
1Q16 there were higher manufacturing costs associated with the February
6 earthquake, leading to a total of NT$28.71 billion in cost of goods
sold. Gross profit increased to NT$8.29 billion, up 64.6% sequentially.
Operating expenses increased 15.7%, mainly from NT$1.54 billion in G&A
expense that includes 12X setup costs. Sales & marketing expenses
increased 8.1% to NT$1.09 billion. R&D expenses represented 8.7% of
operating revenues. Operating income in 2Q16 reached NT$2.45 billion.
COGS & Expenses |
(Amount: NT$ million)
|
| 2Q16 |
| 1Q16 |
| QoQ % change |
| 2Q15 |
| YoY % change |
Net Operating Revenues
|
|
36,997
|
|
34,404
|
|
7.5
|
|
38,012
|
|
(2.7)
|
COGS
| |
(28,712)
| |
(29,370)
| |
(2.2)
| |
(29,289)
| |
(2.0)
|
Depreciation
| |
(11,264)
| |
(10,424)
| |
8.1
| |
(9,404)
| |
19.8
|
Other Mfg. Costs
| |
(17,448)
| |
(18,946)
| |
(7.9)
| |
(19,885)
| |
(12.3)
|
Gross Profit
| |
8,285
| |
5,034
| |
64.6
| |
8,723
| |
(5.0)
|
Gross Margin (%)
| |
22.4%
| |
14.6%
| | | |
22.9%
| | |
Operating Expenses
| |
(5,859)
| |
(5,065)
| |
15.7
| |
(4,864)
| |
20.5
|
G&A
| |
(1,541)
| |
(970)
| |
58.9
| |
(919)
| |
67.7
|
Sales & Marketing
| |
(1,092)
| |
(1,010)
| |
8.1
| |
(930)
| |
17.4
|
R&D
| |
(3,226)
| |
(3,085)
| |
4.6
| |
(3,015)
| |
7.0
|
Net Other Operating
Income & Expenses
| |
23
| |
15
| |
53.3
| |
17
| |
35.3
|
Operating Income (Loss)
|
|
2,449
|
|
(16)
|
|
-
|
|
3,876
|
|
(36.8)
|
Net non-operating expenses in 2Q16 was NT$650 million, including a
NT$548 million gain on disposal of investment, which was mainly offset
by a NT$504 million net investment loss and a NT$501 million exchange
loss.
Non-Operating Income and Expenses |
(Amount: NT$ million)
|
|
2Q16
|
|
1Q16
|
|
2Q15
|
Non-Operating Income and Expenses
|
|
(650)
|
|
46
|
|
1,304
|
Net Interest Income and Expenses
| |
(154)
| |
(57)
| |
(46)
|
Net Investment Gain and Loss
| |
(504)
| |
(14)
| |
(247)
|
Gain and Loss on Disposal of Investment
| |
548
| |
223
| |
1,319
|
Exchange Gain and Loss
| |
(501)
| |
(167)
| |
11
|
Other Gain and Loss
|
|
(39)
|
|
61
|
|
267
|
Cash inflow from operating activities was NT$5.62 billion. Cash outflow
from investing activities totaled NT$27.11 billion, including NT$29.31
billion in CAPEX spending, resulting in a free cash outflow of NT$23.69
billion. Cash inflow from financing activities was NT$11.15 billion,
primarily due to NT$13.55 billion in bank loans and NT$2.40 billion in
treasury stock purchase. Net cash outflow for 2Q16 was NT$10.12 billion.
Over the next 12 months, the company expects to repay NT$4.00 billion in
bank loans.
Cash Flow Summary |
(Amount: NT$ million)
|
|
For the 3-Month Period Ended
Jun. 30, 2016
|
|
|
For the 3-Month Period Ended
Mar. 31, 2016
|
Cash Flow from Operating Activities
|
|
5,618
|
|
|
11,398
|
Net income before tax
| |
1,799
| | |
30
|
Depreciation & Amortization
| |
13,040
| | |
12,665
|
Gain on disposal of investments
| |
(548)
| | |
(223)
|
Impairment loss on financial assets
| |
395
| | |
90
|
Exchange loss (gain) on financial assets and liabilities
| |
315
| | |
(108)
|
Changes in working capital
| |
(9,330)
| | |
(690)
|
Other
| |
(53)
| | |
(366)
|
Cash Flow from Investing Activities
| |
(27,113)
| | |
(19,252)
|
Capital expenditures
| |
(29,307)
| | |
(20,487)
|
Proceeds from disposal of AFS financial assets
| |
808
| | |
642
|
Proceeds from disposal of financial assets measured at cost
| |
-
| | |
519
|
Changes in refundable deposits
| |
(581)
| | |
459
|
Acquisition of intangible assets
| |
(219)
| | |
(452)
|
Other
| |
2,186
| | |
67
|
Cash Flow from Financing Activities
| |
11,152
| | |
14,538
|
Bank loans
| |
13,548
| | |
910
|
Increase in other financial liabilities
| |
-
| | |
13,634
|
Treasury stock acquired
| |
(2,396)
| | |
-
|
Other
| |
(0)
| | |
(6)
|
Effect of Exchange Rate
| |
227
| | |
(433)
|
Net Cash Flow
|
|
(10,116)
|
|
|
6,251
|
Cash and cash equivalents decreased to NT$49.43 billion, mostly due to
free cash outflow of NT$23.69 billion, which was offset by NT$13.55
billion in bank loans. The days of inventory increased one day to 53
days.
Current Assets |
(Amount: NT$ billion)
|
|
2Q16
|
|
1Q16
|
|
2Q15
|
Cash and Cash Equivalents
|
|
49.43
|
|
59.54
|
|
64.05
|
Notes & Accounts Receivable
| |
24.53
| |
19.65
| |
21.44
|
Days Sales Outstanding
| |
54
| |
52
| |
50
|
Inventories, net
| |
17.59
| |
15.84
| |
16.05
|
Days of Inventory
| |
53
| |
52
| |
49
|
Total Current Assets
|
|
103.60
|
|
101.92
|
|
109.22
|
Current liabilities increased to NT$80.05 billion, primarily reflecting
the increase in short-term credit, payable on equipment and dividends
payable. The reclassification of long-term bonds to short-term bonds
reduced long-term credit/bonds to NT$40.47 billion. Total liabilities
increased to NT$148.15 billion, leading to a debt to equity ratio of 67%.
Liabilities |
(Amount: NT$ billion)
|
|
2Q16
|
|
1Q16
|
|
2Q15
|
Total Current Liabilities
|
|
80.05
|
|
41.63
|
|
43.49
|
Notes & Accounts Payable
| |
7.58
| |
6. 32
| |
6.47
|
Short-Term Credit / Bonds
| |
33.48
| |
11.74
| |
5.33
|
Payable on Equipment
| |
14.94
| |
8.25
| |
9.30
|
Dividends payable
| |
6.91
| |
-
| |
6.94
|
Other
| |
17.14
| |
15.32
| |
15.45
|
Long-Term Credit / Bonds
| |
40.47
| |
48.72
| |
50.75
|
Long-Term Investment Liabilities
| |
18.80
| |
19.28
| |
5.98
|
Total Liabilities
| |
148.15
| |
116.49
| |
106.87
|
Debt to Equity
|
|
67%
|
|
51%
|
|
48%
|
Analysis of Revenue2 for Foundry Segment
Revenue from North America and Asia Pacific accounted for 49% and 45% of
2Q16 sales, respectively.
Revenue Breakdown by Region |
Region |
| 2Q16 |
| 1Q16 |
| 4Q15 |
| 3Q15 |
| 2Q15 |
North America
|
|
49%
|
|
48%
|
|
47%
|
|
45%
|
|
46%
|
Asia Pacific
|
|
45%
|
|
45%
|
|
37%
|
|
41%
|
|
42%
|
Europe
|
|
4%
|
|
3%
|
|
6%
|
|
6%
|
|
6%
|
Japan
|
|
2%
|
|
4%
|
|
10%
|
|
8%
|
|
6%
|
Revenue from advanced 12” technologies contributed 43% of 2Q16 revenue,
including 17% from 28nm and 26% from 40nm.
Revenue Breakdown by Geometry |
Geometry |
| 2Q16 |
| 1Q16 |
| 4Q15 |
| 3Q15 |
| 2Q15 |
28nm and below
|
|
17%
|
|
8%
|
|
11%
|
|
10%
|
|
11%
|
28nm<x<=40nm
|
|
26%
|
|
29%
|
|
24%
|
|
25%
|
|
22%
|
40nm<x<=65nm
|
|
18%
|
|
19%
|
|
23%
|
|
21%
|
|
21%
|
65nm<x<=90nm
|
|
4%
|
|
4%
|
|
4%
|
|
4%
|
|
6%
|
90nm<x<=0.13um
|
|
11%
|
|
12%
|
|
12%
|
|
14%
|
|
14%
|
0.13um<x<=0.18um
|
|
12%
|
|
13%
|
|
11%
|
|
11%
|
|
12%
|
0.18um<x<=0.35um
|
|
9%
|
|
12%
|
|
12%
|
|
12%
|
|
11%
|
0.5um and above
|
|
3%
|
|
3%
|
|
3%
|
|
3%
|
|
3%
|
Fabless customers accounted for 93% of revenue in 2Q16.
Revenue Breakdown by Customer Type |
Customer Type |
| 2Q16 |
| 1Q16 |
| 4Q15 |
| 3Q15 |
| 2Q15 |
Fabless
|
|
93%
|
|
91%
|
|
85%
|
|
88%
|
|
89%
|
IDM
|
|
7%
|
|
9%
|
|
15%
|
|
12%
|
|
11%
|
Revenue from the communication segment increased to 55% of sales mainly
driven by strong demand in smartphone related ICs. Consumer applications
constituted 27% of sales.
Revenue Breakdown by Application (1) |
Application |
| 2Q16 |
| 1Q16 |
| 4Q15 |
| 3Q15 |
| 2Q15 |
Computer
|
|
11%
|
|
15%
|
|
11%
|
|
11%
|
|
12%
|
Communication
|
|
55%
|
|
48%
|
|
52%
|
|
55%
|
|
55%
|
Consumer
|
|
27%
|
|
30%
|
|
29%
|
|
27%
|
|
28%
|
Others
|
|
7%
|
|
7%
|
|
8%
|
|
7%
|
|
5%
|
(1)Computer consists of ICs such as CPU, GPU,
HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec,
keyboard controller, monitor scaler, USB, I/O chipset. Communication
consists of handset components, broadband, WLAN, bluetooth,
Ethernet, LAN, DSP, etc. Consumer consists of ICs used for
DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC,
smart cards, toys, etc.
Blended ASP Trend for Foundry Segment
Blended average selling price (ASP) increased in 2Q16.
(To view ASP trend, visit http://www.umc.com/english/investors/2Q16_ASP_trend.asp)
Shipment and Utilization Rate3 for Foundry
Segment
Wafer shipments increased 5.7% to 1,514K in 2Q16. Quarterly capacity
increased 1.8% QoQ to 1,723K, leading to an overall utilization rate of
89% for 2Q16.
Wafer Shipments |
|
| 2Q16 |
| 1Q16 |
| 4Q15 |
| 3Q15 |
| 2Q15 |
Wafer Shipments (8” K equivalents)
|
|
1,514
|
|
1,432
|
|
1,384
|
|
1,467
|
|
1,536
|
|
Quarterly Capacity Utilization Rate |
|
| 2Q16 |
| 1Q16 |
| 4Q15 |
| 3Q15 |
| 2Q15 |
Utilization Rate
|
|
89%
|
|
82%
|
|
83%
|
|
89%
|
|
94%
|
Total Capacity (8” K equivalents)
|
|
1,723
|
|
1,692
|
|
1,690
|
|
1,685
|
|
1,659
|
Capacity4 for Foundry Segment
Overall capacity in the second quarter increased to 1,723K 8-inch
equivalent wafers. Estimated capacity in the third quarter will increase
by approximately 3.0% sequentially to 1,774K 8-inch equivalent wafers,
mainly due to capacity deployment at Fab 12A and Fab 12i.
Annual Capacity in thousands of wafers |
|
| Quarterly Capacity in thousands of wafers |
FAB |
| Geometry (um) |
| 2015 |
| 2014 |
| 2013 |
| 2012 | | | FAB |
| 3Q16E |
| 2Q16 |
| 1Q16 |
| 4Q15 |
WTK |
6"
|
|
3.5 – 0.45
|
|
311
|
|
-
|
|
-
|
|
-
| | | WTK |
|
106
|
|
106
|
|
105
|
|
99
|
Fab 6A |
6"
|
|
3.5 – 0.45
|
|
111
|
|
448
|
|
448
|
|
481
| | | Fab 8A |
|
207
|
|
207
|
|
206
|
|
204
|
Fab 8A |
8"
|
|
0.5 – 0.25
|
|
813
|
|
813
|
|
813
|
|
815
| | | Fab 8C |
|
87
|
|
87
|
|
87
|
|
87
|
Fab 8C |
8"
|
|
0.35 – 0.11
|
|
347
|
|
347
|
|
347
|
|
360
| | | Fab 8D |
|
86
|
|
86
|
|
85
|
|
86
|
Fab 8D |
8"
|
|
0.13 – 0.09
|
|
341
|
|
358
|
|
382
|
|
371
| | | Fab 8E |
|
105
|
|
105
|
|
104
|
|
105
|
Fab 8E |
8"
|
|
0.5 – 0.18
|
|
418
|
|
418
|
|
418
|
|
449
| | | Fab 8F |
|
102
|
|
100
|
|
97
|
|
98
|
Fab 8F |
8"
|
|
0.18 – 0.11
|
|
388
|
|
388
|
|
388
|
|
389
| | | Fab 8S |
|
84
|
|
84
|
|
84
|
|
84
|
Fab 8S |
8"
|
|
0.18 – 0.11
|
|
335
|
|
335
|
|
335
|
|
348
| | | Fab 8N |
|
188
|
|
188
|
|
187
|
|
183
|
Fab 8N |
8"
|
|
0.5 – 0.13
|
|
667
|
|
547
|
|
469
|
|
-
| | | Fab 12A |
|
233
|
|
214
|
|
205
|
|
206
|
Fab 12A |
12"
|
|
0.18 – 0.028
|
|
793
|
|
700
|
|
651
|
|
579
| | | Fab 12i |
|
148
|
|
144
|
|
144
|
|
144
|
Fab 12i |
12”
|
|
0.13 – 0.040
|
|
572
|
|
573
|
|
550
|
|
537
| | | Total |
| 1,774 |
| 1,723 |
| 1,692 |
| 1,690 |
Total(1) |
|
6,617
|
|
6,323
|
|
6,107
|
|
5,514
| | | |
| |
| |
| |
| |
YoY Growth Rate |
|
5%
|
|
4%
|
|
11%
|
|
4%
| | | | | | | | | | | |
2012 figures account for UMC parent company only.
|
(1)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. Capacity total figures are expressed in 8-inch
equivalent wafers.
CAPEX for Foundry Segment
CAPEX spending in 2Q16 totaled US$904 million, bringing first half
spending to US$1.5 billion. Full year 2016 CAPEX plan is budgeted for
US$2.2 billion.
Capital Expenditure by Year - in US$ billion
|
Year
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
CAPEX
|
|
$ 1.9
|
|
$ 1.4
|
|
$ 1.1
|
|
$ 1.7
|
|
$ 1.6
|
2011~2012 figures account for UMC parent company only.
|
2016 CAPEX Plan |
8" |
| 12" |
| Total |
5%
|
|
95%
|
|
US$2.2 billion
|
Third Quarter of 2016 Outlook & Guidance
Quarter-over-Quarter Guidance:
-
Wafer Shipments: To increase by 2-3%
-
ASP in NTD: To remain flat
-
Profitability: Gross profit margin will be approximately 20%
-
Foundry Segment Capacity Utilization: Approximately mid-80% range
-
2016 CAPEX for Foundry Segment: US$2.2bn
Recent Developments / Announcements
Please visit UMC’s website for further details regarding the above
announcements
Conference Call / Webcast Announcement
Wednesday, July 27, 2016
Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)
Dial-in numbers and Access Codes:
USA Toll Free: 1-800 871-3110, 1-888 700-7397
Taiwan Number: 02-2192-8016
Other Areas: +886-2-2192-8016
Access Code: UMC
A live webcast and replay of the 2Q16 results announcement will be
available at www.umc.com
under the “Investors / Events” section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry
that provides advanced IC production for applications spanning every
major sector of the electronics industry. UMC’s robust foundry solutions
enable chip designers to leverage the company’s sophisticated technology
and manufacturing, which include volume production 28nm gate-last
High-K/Metal Gate technology, ultra-low power platform processes
specifically engineered for Internet of Things (IoT) applications and
the automotive industry’s highest-rated AEC-Q100 Grade-0 manufacturing
capabilities for production of ICs found in cars. UMC’s 10 wafer fabs
are strategically located throughout Asia and are able to produce over
500,000 wafers per month. The company employs more than 17,000 people
worldwide, with offices in Taiwan, mainland China, Europe, Japan, Korea,
Singapore, and the United States. UMC can be found on the web at http://www.umc.com
Note from UMC Concerning Forward-Looking Statements
Some of the statements in the foregoing announcement are forward-looking
within the meaning of the U.S. Federal Securities laws, including
statements about introduction of new services and technologies, future
outsourcing, competition, wafer capacity, business relationships and
market conditions. Investors are cautioned that actual events and
results could differ materially from these statements as a result of a
variety of factors, including conditions in the overall semiconductor
market and economy; acceptance and demand for products from UMC; and
technological and development risks. Further information regarding these
and other risks is included in UMC’s filings with the U.S. Securities
and Exchange Commission. 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.
Safe Harbor Statements
This release contains forward-looking statements. These statements
constitute “forward-looking” statements within the meaning of Section
27A of the United States Securities Act of 1933, as amended, and Section
21E of the United States Securities Exchange Act of 1934, as amended,
and as defined in the United States 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) dependence upon the frequent
introduction of new services and technologies based on the latest
developments in the industry in which UMC operates; (ii) the intensely
competitive semiconductor, communications, consumer electronics and
computer industries and markets; (iii) the risks associated with
international business activities; (iv) 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 natural disasters, 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 United States
Securities and Exchange Commission. All information provided in this
release is as of the date of this release and are based on assumptions
that UMC believes to be reasonable as of this date, and 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 prepared and
published in accordance with Taiwan International Financial Reporting
Standards, or TIFRSs, recognized by the Financial Supervisory Commission
in the ROC, which is different from International Financial Reporting
Standards, or IFRSs, issued by the International Accounting Standards
Board. Investors are cautioned that there may be significant differences
between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in
certain significant respects from generally accepted accounting
principles in the ROC and generally accepted accounting principles in
the United States.
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.
1 Unless otherwise stated, all financial figures discussed in
this announcement are prepared in accordance with TIFRSs recognized by
Financial Supervisory Commission in the ROC, which is different from
IFRSs issued by the International Accounting Standards Board. They
represent comparisons among the three-month period ending Jun 30, 2016,
the three-month period ending Mar 31, 2016, and the equivalent
three-month period that ended Jun 30, 2015. For all 2Q16 results, New
Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the
Jun 30, 2016 exchange rate of NT$ 32.27 per U.S. Dollar.
2 Revenue in this section represents wafer sales
3 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
4 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.
- FINANCIAL TABLES TO FOLLOW -
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
Consolidated Condensed Balance Sheet |
As of June 30, 2016
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars
(US$) |
| |
| |
| |
| | | | |
|
|
June 30, 2016
|
|
US$
| |
NT$
| |
%
|
Assets
| | | | | |
Current assets
| | | | | |
Cash and cash equivalents
|
1,532
| |
49,425
| |
13.4%
|
Financial assets at fair value through profit or loss, current
|
21
| |
666
| |
0.2%
|
Notes & Accounts receivable, net
|
760
| |
24,533
| |
6.7%
|
Inventories, net
|
545
| |
17,593
| |
4.8%
|
Other current assets
|
353
| |
11,386
| |
3.1%
|
Total current assets
|
3,211
| |
103,603
| |
28.2%
|
| | | | |
|
Non-current assets
| | | | | |
Funds and investments
|
1,182
| |
38,146
| |
10.4%
|
Property, plant and equipment
|
6,440
| |
207,826
| |
56.5%
|
Other non-current assets
|
561
| |
18,102
| |
4.9%
|
Total non-current assets
|
8,183
| |
264,074
| |
71.8%
|
Total assets
|
11,394
| |
367,677
| |
100.0%
|
| | | | |
|
Liabilities
| | | | | |
Current liabilities
| | | | | |
Short-term loans
|
681
| |
21,991
| |
6.0%
|
Financial liabilities at fair value through profit or loss, current
|
0
| |
3
| |
0.0%
|
Payables
|
1,175
| |
37,932
| |
10.3%
|
Dividends payable
|
214
| |
6,907
| |
1.9%
|
Current portion of long-term liabilities
|
356
| |
11,494
| |
3.1%
|
Other current liabilities
|
55
| |
1,723
| |
0.5%
|
Total current liabilities
|
2,481
| |
80,050
| |
21.8%
|
| | | | |
|
Non-current liabilities
| | | | | |
Bonds payable
|
1,063
| |
34,309
| |
9.3%
|
Long-term loans
|
191
| |
6,166
| |
1.7%
|
Other non-current liabilities
|
856
| |
27,625
| |
7.5%
|
Total non-current liabilities
|
2,110
| |
68,100
| |
18.5%
|
Total liabilities
|
4,591
| |
148,150
| |
40.3%
|
| | | | |
|
Equity
| | | | | |
Equity attributable to the parent company
| | | | | |
Capital
|
3,912
| |
126,243
| |
34.3%
|
Additional paid-in capital
|
1,270
| |
40,988
| |
11.1%
|
Retained earnings, unrealized gain or loss on available-for-sale
financial assets and exchange differences on translation of
foreign operations
|
1,709
| |
55,142
| |
15.1%
|
Treasury stock
|
(146)
| |
(4,719)
| |
(1.3%)
|
Total equity attributable to the parent company
|
6,745
| |
217,654
| |
59.2%
|
Non-controlling interests
|
58
| |
1,873
| |
0.5%
|
Total equity
|
6,803
| |
219,527
| |
59.7%
|
Total liabilities and equity
|
11,394
| |
367,677
| |
100.0%
|
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
|
|
|
|
|
|
|
Note:New Taiwan Dollars have been translated into U.S. Dollars at
the June 30, 2016 exchange rate of NT $32.27 per U.S. Dollar. |
|
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
Consolidated Condensed Statements of Comprehensive Income |
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars
(US$) |
Except Per Share and Per ADS Data |
| | | |
| |
| |
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | | | | | | | |
|
| Year over Year Comparison | | Quarter over Quarter Comparison |
|
Three-Month Period Ended
| |
Three-Month Period Ended
|
|
June 30, 2016
| |
June 30, 2015
| |
Chg.
| |
June 30, 2016
| |
March 31, 2016
| |
Chg.
|
|
US$
| |
NT$
| |
US$
| |
NT$
| |
%
| |
US$
| |
NT$
| |
US$
| |
NT$
| |
%
|
Net operating revenues
|
1,146
| |
36,997
| |
1,178
| |
38,012
| |
(2.7%)
| |
1,146
| |
36,997
| |
1,066
| |
34,404
| |
7.5%
|
Operating costs
|
(889)
| |
(28,712)
| |
(908)
| |
(29,289)
| |
(2.0%)
| |
(889)
| |
(28,712)
| |
(910)
| |
(29,370)
| |
(2.2%)
|
Gross profit
|
257
| |
8,285
| |
270
| |
8,723
| |
(5.0%)
| |
257
| |
8,285
| |
156
| |
5,034
| |
64.6%
|
|
22.4%
| |
22.4%
| |
22.9%
| |
22.9%
| | | |
22.4%
| |
22.4%
| |
14.6%
| |
14.6%
| | |
Operating expenses
| | | | | | | | | | | | | | | | | | | |
- Sales and marketing expenses
|
(34)
| |
(1,092)
| |
(29)
| |
(930)
| |
17.4%
| |
(34)
| |
(1,092)
| |
(31)
| |
(1,010)
| |
8.1%
|
- General and administrative expenses
|
(48)
| |
(1,541)
| |
(29)
| |
(919)
| |
67.7%
| |
(48)
| |
(1,541)
| |
(30)
| |
(970)
| |
58.9%
|
- Research and development expenses
|
(100)
| |
(3,226)
| |
(93)
| |
(3,015)
| |
7.0%
| |
(100)
| |
(3,226)
| |
(96)
| |
(3,085)
| |
4.6%
|
Subtotal
|
(182)
| |
(5,859)
| |
(151)
| |
(4,864)
| |
20.5%
| |
(182)
| |
(5,859)
| |
(157)
| |
(5,065)
| |
15.7%
|
Net other operating income and expenses
|
1
| |
23
| |
1
| |
17
| |
35.3%
| |
1
| |
23
| |
1
| |
15
| |
53.3%
|
Operating income (loss)
|
76
| |
2,449
| |
120
| |
3,876
| |
(36.8%)
| |
76
| |
2,449
| |
(0)
| |
(16)
| |
-
|
|
6.6%
| |
6.6%
| |
10.2%
| |
10.2%
| | | |
6.6%
| |
6.6%
| |
(0.1%)
| |
(0.1%)
| | |
| | | | | | | | | | | | | | | | | | |
|
Net non-operating income and expenses
|
(20)
| |
(650)
| |
41
| |
1,304
| |
-
| |
(20)
| |
(650)
| |
1
| |
46
| |
-
|
Income from continuing operations before
income tax
|
56
| |
1,799
| |
161
| |
5,180
| |
(65.3%)
| |
56
| |
1,799
| |
1
| |
30
| |
5,896.7%
|
|
4.9%
| |
4.9%
| |
13.6%
| |
13.6%
| | | |
4.9%
| |
4.9%
| |
0.1%
| |
0.1%
| | |
| | | | | | | | | | | | | | | | | | |
|
Income tax benefit (expense)
|
(7)
| |
(220)
| |
(20)
| |
(635)
| |
(65.4%)
| |
(7)
| |
(220)
| |
1
| |
49
| |
-
|
Net income
|
49
| |
1,579
| |
141
| |
4,545
| |
(65.3%)
| |
49
| |
1,579
| |
2
| |
79
| |
1,898.7%
|
|
4.3%
| |
4.3%
| |
12.0%
| |
12.0%
| | | |
4.3%
| |
4.3%
| |
0.2%
| |
0.2%
| | |
| | | | | | | | | | | | | | | | | | |
|
Other comprehensive income (loss)
|
(30)
| |
(977)
| |
(155)
| |
(5,006)
| |
(80.5%)
| |
(30)
| |
(977)
| |
(18)
| |
(583)
| |
67.6%
|
| | | | | | | | | | | | | | | | | | |
|
Total comprehensive income (loss)
|
19
| |
602
| |
(14)
| |
(461)
| |
-
| |
19
| |
602
| |
(16)
| |
(504)
| |
-
|
| | | | | | | | | | | | | | | | | | |
|
Net income attributable to:
| | | | | | | | | | | | | | | | | | | |
Stockholders of the parent
|
80
| |
2,583
| |
143
| |
4,600
| |
(43.8%)
| |
80
| |
2,583
| |
7
| |
210
| |
1,130.0%
|
Non-controlling interests
|
(31)
| |
(1,004)
| |
(2)
| |
(55)
| |
1,725.5%
| |
(31)
| |
(1,004)
| |
(5)
| |
(131)
| |
666.4%
|
| | | | | | | | | | | | | | | | | | |
|
Comprehensive income (loss) attributable to:
| | | | | | | | | | | | | | | | | |
Stockholders of the parent
|
51
| |
1,635
| |
(11)
| |
(369)
| |
-
| |
51
| |
1,635
| |
(11)
| |
(356)
| |
-
|
Non-controlling interests
|
(32)
| |
(1,033)
| |
(3)
| |
(92)
| |
1,022.8%
| |
(32)
| |
(1,033)
| |
(5)
| |
(148)
| |
598.0%
|
| | | | | | | | | | | | | | | | | | |
|
Earnings per share-basic
|
0.007
| |
0.21
| |
0.011
| |
0.37
| | | |
0.007
| |
0.21
| |
0.001
| |
0.02
| | |
Earnings per ADS (2) |
0.033
| |
1.05
| |
0.057
| |
1.85
| | | |
0.033
| |
1.05
| |
0.003
| |
0.10
| | |
Weighted average number of shares
| | | | | | | | | | | | | | | | | | | |
outstanding (in millions)
| | |
12,335
| | | |
12,572
| | | | | |
12,335
| | | |
12,408
| | |
| | | | | | | | | | | | | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes: | | | | | | | | | | | | | | | | | | | |
(1) New Taiwan Dollars have been translated into U.S. Dollars at
the June 30, 2016 exchange rate of NT $32.27 per U.S. Dollar. |
(2) 1 ADS equals 5 common shares. |
|
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
Consolidated Condensed Statements of Comprehensive Income |
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars
(US$) |
Except Per Share and Per ADS Data |
| | | |
| |
| |
| |
| |
|
For the Three-Month Period Ended
| |
For the Six-Month Period Ended
|
|
June 30, 2016
| |
June 30, 2016
|
|
US$
| |
NT$
| |
%
| |
US$
| |
NT$
| |
%
|
Net operating revenues
|
1,146
| |
36,997
| |
100.0%
| |
2,213
| |
71,401
| |
100.0%
|
Operating costs
|
(889)
| |
(28,712)
| |
(77.6%)
| |
(1,800)
| |
(58,082)
| |
(81.3%)
|
Gross profit
|
257
| |
8,285
| |
22.4%
| |
413
| |
13,319
| |
18.7%
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
Operating expenses
| | | | | | | | | | | |
- Sales and marketing expenses
|
(34)
| |
(1,092)
| |
(2.9%)
| |
(65)
| |
(2,101)
| |
(3.0%)
|
- General and administrative expenses
|
(48)
| |
(1,541)
| |
(4.2%)
| |
(78)
| |
(2,511)
| |
(3.5%)
|
- Research and development expenses
|
(100)
| |
(3,226)
| |
(8.7%)
| |
(196)
| |
(6,311)
| |
(8.8%)
|
Subtotal
|
(182)
| |
(5,859)
| |
(15.8%)
| |
(339)
| |
(10,923)
| |
(15.3%)
|
Net other operating income and expenses
|
1
| |
23
| |
0.0%
| |
1
| |
36
| |
0.0%
|
Operating income
|
76
| |
2,449
| |
6.6%
| |
75
| |
2,432
| |
3.4%
|
| | | | | | | | | | |
|
Net non-operating income and expenses
|
(20)
| |
(650)
| |
(1.7%)
| |
(18)
| |
(602)
| |
(0.8%)
|
Income from continuing operations before
income tax
|
56
| |
1,799
| |
4.9%
| |
57
| |
1,830
| |
2.6%
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
Income tax expense
|
(7)
| |
(220)
| |
(0.6%)
| |
(6)
| |
(172)
| |
(0.3%)
|
Net income
|
49
| |
1,579
| |
4.3%
| |
51
| |
1,658
| |
2.3%
|
| | | | | | | | | | |
|
Other comprehensive income (loss)
|
(30)
| |
(977)
| |
(2.7%)
| |
(48)
| |
(1,560)
| |
(2.2%)
|
| | | | | | | | | | |
|
Total comprehensive income (loss)
|
19
| |
602
| |
1.6%
| |
3
| |
98
| |
0.1%
|
| | | | | | | | | | |
|
Net income attributable to:
| | | | | | | | | | | |
Stockholders of the parent
|
80
| |
2,583
| |
7.0%
| |
87
| |
2,793
| |
3.9%
|
Non-controlling interests
|
(31)
| |
(1,004)
| |
(2.7%)
| |
(36)
| |
(1,135)
| |
(1.6%)
|
| | | | | | | | | | |
|
Comprehensive income (loss) attributable to:
| | | | | | | | | | |
Stockholders of the parent
|
51
| |
1,635
| |
4.4%
| |
40
| |
1,279
| |
1.8%
|
Non-controlling interests
|
(32)
| |
(1,033)
| |
(2.8%)
| |
(37)
| |
(1,181)
| |
(1.7%)
|
| | | | | | | | | | |
|
Earnings per share-basic
|
0.007
| |
0.21
| | | |
0.007
| |
0.23
| | |
Earnings per ADS (2) |
0.033
| |
1.05
| | | |
0.036
| |
1.15
| | |
| | | | | | | | | | |
|
Weighted average number of shares
outstanding (in millions)
|
12,335
| | | | | |
12,372
| | |
|
|
|
|
|
|
|
|
|
|
|
|
Notes: | | | | | | | | | | | |
(1) New Taiwan Dollars have been translated into U.S. Dollars at
the June 30, 2016 exchange rate of NT $32.27 per U.S. Dollar. |
(2) 1 ADS equals 5 common shares. |
|
|
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES |
Consolidated Condensed Statement of Cash Flows |
For The Six-Month Period Ended June 30, 2016
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars
(US$) |
| |
| |
|
US$
| |
NT$
|
Cash flows from operating activities : | | | |
Net income before tax
|
57
| |
1,830
|
Depreciation & Amortization
|
797
| |
25,706
|
Gain on disposal of investments
|
(24)
| |
(770)
|
Share of loss of associates and joint ventures
|
10
| |
326
|
Impairment loss on financial assets
|
15
| |
485
|
Changes in notes & accounts receivable
|
(164)
| |
(5,290)
|
Changes in prepayments
|
(219)
| |
(7,082)
|
Changes in payables
|
78
| |
2,529
|
Changes in assets, liabilities and others
|
(23)
| |
(718)
|
Net cash provided by operating activities
|
527
| |
17,016
|
| | |
|
Cash flows from investing activities : | | | |
Proceeds from disposal of available-for-sale financial assets
|
45
| |
1,450
|
Proceeds from disposal of financial assets measured at cost
|
16
| |
519
|
Acquisition of property, plant and equipment
|
(1,543)
| |
(49,794)
|
Acquisition of intangible assets
|
(21)
| |
(672)
|
Others
|
66
| |
2,133
|
Net cash used in investing activities
|
(1,437)
| |
(46,364)
|
| | |
|
Cash flows from financing activities : | | | |
Increase in short-term loans
|
520
| |
16,787
|
Proceeds from long-term loans
|
62
| |
2,000
|
Repayments of long-term loans
|
(134)
| |
(4,329)
|
Increase in other financial liabilities
|
422
| |
13,634
|
Treasury stock acquired
|
(74)
| |
(2,396)
|
Others
|
(0)
| |
(6)
|
Net cash provided by financing activities
|
796
| |
25,690
|
| | |
|
Effect of exchange rate changes on cash and cash equivalents
|
(5)
| |
(207)
|
Net decrease in cash and cash equivalents
|
(119)
| |
(3,865)
|
| | |
|
Cash and cash equivalents at beginning of period
|
1,651
| |
53,290
|
| | |
|
Cash and cash equivalents at end of period
|
1,532
| |
49,425
|
| | |
|
|
|
|
|
Note: New Taiwan Dollars have been translated into U.S. Dollars
at the June 30, 2016 exchange rate of NT $32.27 per U.S. Dollar. |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160727005608/en/
Contacts:
UMC, Investor Relations
Bowen Huang / David Wong, +
886-2-2658-9168, ext. 16900
bowen_huang@umc.com
david_wong@umc.com
Source: United Microelectronics Corporation
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