ChipMOS REPORTS THIRD QUARTER 2012 RESULTS

(PRNewswire) —

HSINCHU, Taiwan, Nov. 20, 2012 /PRNewswire-FirstCall/ --

Highlights for the Third Quarter of 2012:

  • 3Q12 Net Revenue Increased 15.2% Compared to 3Q11
  • 3Q12 Gross Margin Improved to 18.6% Compared to 12.8% in 2Q12
  • 3Q12 Foreign Exchange Loss of US$3.1 Million Compared to a Gain of US$2.1 Million in 2Q12 and a Gain of US$6.8 million in 3Q11
  • 3Q12 Net Income of US$0.46 per Basic Common Share Compared to US$0.18 in 3Q11
  • Company Generated US$33.1 Million of Free Cash Flow in 3Q12
  • Completed US$10.0 Million Repurchase Program
  • Secondary Offering Closed on November 1, 2012

ChipMOS TECHNOLOGIES (Bermuda) LTD. ("ChipMOS" or the "Company") (Nasdaq: IMOS) today reported unaudited consolidated financial results for the third quarter ended September 30, 2012.  All U.S. dollar figures in this release are based on the exchange rate of NT$29.29 against US$1.00 as of September 28, 2012.

Net revenue on a US GAAP basis for the third quarter of 2012 was NT$5,139.9 million or US$175.5 million, an increase of 6.4% from NT$4,829.3 million or US$164.9 million in the second quarter of 2012 and an increase of 15.2% from NT$4,461.5 million or US$152.3 million for the third quarter of 2011.

Operating expense for the third quarter of 2012 was NT$335.9 million or US$11.5 million compared to NT$290.3 million or US$9.9 million in the second quarter of 2012 and NT$268.6 million or US$9.1 million in the third quarter of 2011.  Non-operating expense for the third quarter of 2012 was NT$131.4 million or US$4.5 million, including a foreign exchange loss of NT$90.7 million or US$3.1 million and net interest expense of NT$43.8 million or US$1.5 million, compared to non-operating income of NT$13.3 million or US$0.5 million, including a foreign exchange gain of NT$61.0 million or US$2.1 million and net interest expense of NT$50.1 million or US$1.7 million in the second quarter of 2012, and compared to non-operating income of NT$88.0 million or US$3.0 million, including a foreign exchange gain of NT$199.6 million or US$6.8 million and net interest expense of NT$55.6 million or US$1.9 million in the third quarter or 2011.

Net income on a US GAAP basis for the third quarter of 2012 was NT$367.0 million or US$12.5 million, and NT$13.43 or US$0.46 per basic common share and NT$13.02 or US$0.44 per diluted common share, which compared to net income of NT$300.4 million or US$10.3 million, and NT$11.00 or US$0.38 per basic common share and NT$10.68 or US$0.36 per diluted common share, for the second quarter of 2012 and to a net income of NT$139.8 million or US$4.8 million and NT$5.19 or US$0.18 per basic and NT$5.11 or US$0.17 per diluted common share, for the third quarter of 2011.  Excluding foreign exchange loss of US$3.1 million, our Q3 net income was US$15.6 million, and US$0.57 per basic common share and US$0.55 per diluted common share.

The unaudited consolidated financial results of ChipMOS for the third quarter ended September 30, 2012 included the financial results of ChipMOS TECHNOLOGIES INC., ChipMOS U.S.A., Inc., MODERN MIND TECHNOLOGY LIMITED and its wholly-owned subsidiary ChipMOS TECHNOLOGIES (Shanghai) LTD., and ThaiLin Semiconductor Corp.

Two of the Company's shareholders ThaiLin Semiconductor Corp. ("ThaiLin"), a subsidiary of ChipMOS, and Siliconware Precision Industries Co., Ltd. ("Siliconware Precision") closed their previously announced underwritten secondary offering on November 1, 2012.  2,500,000 of its common shares were priced at US$10.10 per share.  1,700,000 common shares were offered by Company shareholder ThaiLin, a subsidiary of ChipMOS, and 800,000 common shares were offered by Company shareholder Siliconware Precision.  In addition, the underwriters also exercised an option to purchase an additional 300,000 shares from ThaiLin on November 1, 2012.  Siliconware Precision continues to own approximately 2.2 million of the Company's common shares and ThaiLin continues to own approximately 4.5 million of the Company's common shares. 

S.J. Cheng, Chairman and Chief Executive Officer of ChipMOS, said, "We expect to continue to successfully execute on all fronts to drive near term financial performance gains and structural changes that we believe are essential to our long-term success.  Net revenue in 3Q12 increased 15.2% over 3Q11 and was up 6.4% from 2Q12.  From a product mix standpoint we benefitted from higher revenue from our LCD driver, mixed signal and mask ROM memory businesses. Our overall utilization rate increased to 80% from 78% in 2Q12, and 73% in 1Q12.  In addition, depreciation and amortization expenses were US$5.9 million lower in 3Q12 than in 2Q12.  As a result of the above, we were able to drive a further improvement in gross margin to 18.6% in 3Q12 from 12.8% 2Q12 and 6.2% in 1Q12.  Finally, we took another important step forward in the dual listing process and in our efforts to streamline the Company's corporate capital structure with the successful closure of a secondary offering on November 1, 2012.  We anticipate moving into the fourth quarter with considerable momentum in our business, which gives us added confidence in our business strategy and prospects." 

S.K. Chen, Chief Financial Officer of ChipMOS, said, "Our revenue growth, profitability and operating expenses in 3Q12 were all in-line with expectations.  Capital expenditures in the third quarter were US$19.6 million, bringing our year-to-date CapEx total to US$74.6 million, in-line with the plan we outlined at the start of the year.  Depreciation and amortization expenses in 3Q12 came in at US$37.2 million, a US$5.9 million reduction compared to 2Q12. We expect a further reduction in depreciation and amortization expenses in 4Q12 to approximately US$34.0 million.  Our balance sheet continued to improve as we generated free cash flow of US$33.1 million in 3Q12.  We exited the third quarter with a balance of cash and cash equivalents of US$257.3 million. The US$10 million previously authorized share repurchase plan was completed on October 12, 2012, with approximately 654 thousand common shares repurchased, and subsequently cancelled.  While we have not immediately extended the repurchase program, our Board of Directors continues to monitor the situation as part of our efforts to increase shareholder value."

Selected Operation Data







3Q12

2Q12

Revenue by segment



   Testing

29%

30%

   Assembly

33%

34%

   LCD Driver 

23%

22%

Bumping

15%

14%




Utilization by segment



   Testing

75%

73%

   Assembly

81%

82%

   LCD Driver

83%

75%

Bumping

82%

85%

   Overall

80%

78%




CapEx

US$19.6 million

US$35.0 million

   Testing

22%

16%

   Assembly

18%

14%

LCD Driver

14%

48%

   Bumping

46%

 

22%

 




Depreciation and amortization expenses (US GAAP)

US$37.2 million

US$43.1 million


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