ChipMOS REPORTS FOURTH QUARTER AND FULL YEAR 2016 RESULTS

(PRNewswire) —

Full Year 2016 Highlights (as compared to the Full Year 2015):

  • Net Revenue of US$567.5 Million Compared to US$581.4 Million.
  • Gross Profit of US$112.4 Million Compared to US$128.1 Million.
  • Gross Margin of 19.8% Compared to 22.0%.
  • Net Earnings of US$0.06 Per Basic Common Share and US$0.05 Per Diluted Common Share Compared to US$0.08 Per Basic Common Share and US$0.08 Per Diluted Common Share. 
  • Generated US$109.5 Million Cash from Operations in 2016.
  • Ended 2016 with Cash and Cash Equivalents Balance of US$233.7 Million After Distributing US$101.7 Million to Shareholders as Cash Consideration for the Merger of ChipMOS Taiwan and ChipMOS Bermuda in October; Distributing a Cash Dividend of US$55.3 Million to Shareholders; Repurchasing US$31.1 Million in Shares; and Investing US$96.4 Million in CapEx in 2016. 
  • Reached China Joint-Venture Agreement with Strategic Investors Led By Tsinghua Unigroup.

ChipMOS TECHNOLOGIES INC. ("ChipMOS" or the "Company") (Taiwan Stock Exchange: 8150 and NASDAQ: IMOS), an industry leading provider of outsourced semiconductor assembly and test services ("OSAT"), today reported unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2016. All U.S. dollar figures in this release are based on the exchange rate of NT$32.40 against US$1.00 as of December 30, 2016.

All the figures were prepared in accordance with International Financial Reporting Standards as endorsed by the Financial Supervisory Commission of the Republic of China ("T-IFRS").

On November 30, 2016, the Company held a meeting of its Board of Directors and approved the authorization of its subsidiary, ChipMOS TECHNOLOGIES (BVI) LTD., to sell and transfer 54.98% equity interests of the wholly-owned subsidiary ChipMOS TECHNOLOGIES (Shanghai) LTD. ("ChipMOS Shanghai"). As of December 31, 2016, the Company had not yet transferred the equity interests to the transaction counterparties. As a result, ChipMOS Shanghai was classified under T-IFRS as a discontinued operation of ChipMOS and the loss generated by ChipMOS Shanghai was recognized "loss from discontinued operations" in the following unaudited consolidated statements of comprehensive income as it will be on an ongoing basis. The assets and liabilities related to ChipMOS Shanghai have been reclassified as "held for sale" in the following unaudited consolidated statements of financial position as of December 31, 2016. The Company will, however, recognize 45.02% of the net income generated from ChipMOS Shanghai upon closure of its proposed joint-venture agreement, as announced on November 30, 2016.  The Company believes the transaction will likely close by the end of the first quarter of 2017.  The figures referenced in Table 1 exclude revenue from ChipMOS Shanghai. The figures referenced in Table 2 reflect the inclusion of revenue from ChipMOS Shanghai. The figures referenced in Table 3 present the results of operations for the year ended December 31, 2016 of both the Company and ChipMOS Shanghai.

Net revenue for the fourth quarter of 2016 was NT$4,667.1 million or US$144.0 million, a decrease of 2.1% from NT$4,769.0 million or US$147.2 million in the third quarter of 2016 and an increase of 4.2% from NT$4,477.3 million or US$138.2 million for the same period in 2015.  Net profit attributable to the Company for the fourth quarter of 2016 was NT$613.9 million or US$18.9 million, and NT$0.72 or US$0.02 per basic common share and NT$0.72 or US$0.02 per diluted common share, as compared to net profit attributable to the Company for the third quarter of 2016 of NT$255.1 million or US$7.9 million, and NT$0.30 or US$0.01 per basic common share and NT$0.30 or US$0.01 per diluted common share, and compared to net profit attributable to the Company in the fourth quarter of 2015 of NT$437.3 million or US$13.5 million, and NT$0.50 or US$0.02 per basic common share and NT$0.50 or US$0.02 per diluted common share. 

Net revenue for the fiscal year ended December 31, 2016 was NT$18,387.6 million or US$567.5 million, a decrease of 2.4% from NT$18,837.1 million or US$581.4 million for the fiscal year ended December 31, 2015.  Net profit attributable to the Company for the fiscal year ended December 31, 2016 was NT$1,532.3 million or US$47.3 million, and NT$1.78 or US$0.06 per basic and NT$1.76 or US$0.05 per diluted common share, compared to net profit attributable to the Company for the fiscal year ended December 31, 2015 was NT$2,230.5 million or US$68.9 million, and NT$2.54 or US$0.08 per basic and NT$2.51 or US$0.08 per diluted common share. 

S.J. Cheng, Chairman and President of ChipMOS, said, "The fourth quarter developed as expected with revenue in-line with guidance and gross margin above the high-end of guidance.  Our memory business remained relatively stable due to the industry's favorable supply / demand position.  We expect to benefit from growth in the DRAM and NAND flash markets after the tradition Q1 seasonal trough and fewer working days in the quarter due to Chinese New Year closures.  Demand is coming from diverse applications including handsets and computing.  Revenue from our LCD driver business declined compared to the prior quarter and year ago period reflecting industry-wide headwinds due to a channel inventory adjustment and capacity shift for some applications, like smartphones, to OLED solutions, where we are also expanding our business.  We expect to see demand improve as we move past the first quarter led by further penetration of the 4K2K opportunity, demand from the smartphone market and expected growth out of China.  Finally, we believe our previously announced ChipMOS Shanghai joint-venture, with strategic investors led by Tsinghua Unigroup, will likely close by the end of the first quarter of 2017.  We expect this joint-venture will serve as a cornerstone for our long-term growth by allowing us accelerate the planned expansion of ChipMOS Shanghai, while adding on new lines to service the higher demand we are seeing for our LCD driver ICs, touch driver, AMOLED, OLED and memory back-end services.  Tsinghua Unigroup committed to actively supporting the joint-venture across its comprehensive semiconductor supply chain investment portfolio.  We look forward to working to mutually grow the sustainable revenue and profit of ChipMOS Shanghai, while promoting the interests of all shareholders and employees."

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