ChipMOS REPORTS THIRD QUARTER 2014 RESULTS

(PRNewswire) —

HSINCHU, Nov. 12, 2014 /PRNewswire-FirstCall/ --

3Q14 Highlights (as compared to 2Q14):

  • Net Revenue Increased 7.3% to US$190.7 Million from US$177.8 Million
  • Gross Profit Increased to US$49.2 Million from US$42.0 Million
  • Gross Margin Improved to 25.8% from 23.6%
  • Operating Profit Increased to US$36.2 Million from US$27.6 Million
  • Net Earnings of US$0.64 Per Basic Common Share and US$0.62 Per Diluted Common Share Compared to US$0.19 Per Basic Common Share and US$0.18 Per Diluted Common Share
  • Generated US$18.5 Million of Free Cash Flow after US$20.4 Million of CapEx
  • Retained Balance of Cash and Cash Equivalents at US$470.4 Million from US$445.4 Million

ChipMOS TECHNOLOGIES (Bermuda) LTD. ("ChipMOS" or the "Company") (Nasdaq: IMOS), an industry leading provider of outsourced semiconductor assembly and test services ("OSAT"), today reported unaudited consolidated financial results for the third quarter ended September 30, 2014. All U.S. dollar figures in this release are based on the exchange rate of NT$30.44 against US$1.00 as of September 30, 2014.

Net revenue for the third quarter of 2014 was NT$5,806.3 million or US$190.7 million, an increase of 7.3% from NT$5,413.4 million or US$177.8 million in the second quarter of 2014 and an increase of 13.6% from NT$5,111.9 million or US$167.9 million for the same period in 2013.  This is above the high-end of the Company's guidance, which called for revenue to increase by approximately 3% to 7%, as compared to the second quarter of 2014.

Net income for the third quarter of 2014 was NT$573.2 million or US$18.8 million, and NT$19.37 or US$0.64 per basic common share and NT$18.92 or US$0.62 per diluted common share, as compared to net income for the second quarter of 2014 of NT$169.8 million or US$5.6 million, and NT$5.70 or US$0.19 per basic common share and NT$5.56 or US$0.18 per diluted common share, and compared to net income in the third quarter of 2013 of NT$442.5 million or US$14.5 million, and NT$14.97 or US$0.49 per basic common share and NT$14.60 or US$0.48 per diluted common share.

The unaudited consolidated financial results of ChipMOS for the third quarter ended September 30, 2014 included the financial results of ChipMOS TECHNOLOGIES INC. ("ChipMOS Taiwan"), ChipMOS U.S.A., Inc., ThaiLin Semiconductor Corp. and MODERN MIND TECHNOLOGY LIMITED and its wholly-owned subsidiary ChipMOS TECHNOLOGIES (Shanghai) LTD.

S.J. Cheng, Chairman and Chief Executive Officer of ChipMOS, said, "Results for the third quarter were above plan, with revenue increasing 7.3% in the third quarter to US$190.7 million, as compared to 2Q14, and overall capacity utilization increasing to 81% in Q314, as compared to 77% in Q214.  We continue to benefit from growth in our DRAM and LCD driver businesses, which grew 5.1% and 6.6%, respectively, compared to the second quarter of 2014.   Revenue from our mixed-signal business was up 19%, as compared to the second quarter of 2014, while revenue derived from our flash business increased approximately 11%.  Gross margin on a consolidated basis was 25.8% in the third quarter, which was at the high-end of our prior guidance range of approximately 23% to 26%.  We remain positive in our near term outlook given the healthy dynamics driving demand in the end markets served by our customers, and we remain focused on building value for our shareholders.  To put our current growth trajectory in perspective, before we built out our LCD driver business, 4Q seasonality would typically have resulted in revenue being down about 10% in the fourth quarter, as compared to the third quarter.  For 2014, we expect 4Q to come in stronger than the seasonal norm, with revenue flat to down in the low single digits, as compared to the third quarter of 2014, and margins holding strong at approximately at 23% to 26%.  We expect continued stability in 2015, as we successfully leverage our integrated assembly and test business strategy."

S.K. Chen, Chief Financial Officer of ChipMOS, said, "We generated an additional US$18.5 million of free cash flow from our operations.  This was after we invested US$20.4 million of CapEx in the third quarter of 2014, as we work to meet increased customer demand levels and improve efficiencies, including working to remove a bottleneck at our LCD driver testing and bumping segments.   Our operating expenses were US$13.9 million or 7.3% of our Q3 revenue compared to US$15.7 million or 8.8% of revenue for Q2.  We ended the quarter with a strong balance of cash and cash equivalents at US$470.4 million, and a net cash position of US$215.6 million.  Our net debt to equity ratio remained healthy at negative 46.8%, as of September 30, 2014.  Our total debt increased by US$50.6 million to US$254.8 million at the end of Q314, reflecting the strategic drawdown of US$197.1 million from our new credit facility to replace an older long-term loan, which resulted in overall lower interest expenses in the quarter. The non-controlling interests for the third quarter of 2014 increased to US$14.0 million as compared to US$9.4 million in Q214, primarily due to an increase of US$12.9 million in net income before tax at ChipMOS Taiwan in Q314 compared to Q214.  We remain focused on smart growth, being a reliable partner for quality, critical OSAT services, and executing our longer-term capacity roadmap, in order to deliver consistent financial results, with further improvement to our balance sheet and shareholder value."

Selected Operation Data







3Q14

2Q14

Revenue by segment



   Testing

24%

24%

   Assembly

35%

35%

   LCD Driver 

23%

22%

Bumping

18%

19%




Utilization by segment



   Testing

77%

75%

   Assembly

79%

76%

   LCD Driver

85%

73%

Bumping

85%

85%

   Overall

81%

77%




CapEx

US$20.4 million

US$26.1 million

   Testing

20%

39%

   Assembly

35%

23%

LCD Driver

10%

9%

   Bumping

35%

29%




Depreciation and amortization expenses

US$23.7 million

US$23.9 million


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