UMC Reports First Quarter 2013 Results

Double Digit Shipment Growth Expected in 2Q; 40nm Revenue To Reach 20%

(PRNewswire) —

First Quarter 2013 Overview[1]:

  • Revenue: NT$27.78 billion (US$931.31 million)
  • Gross margin: 16.2%; operating margin: 1.1%
  • Capacity utilization: 78%
  • Net income attributable to the stockholders of the parent: NT$6.59 billion (US$221.02 million)
  • Earnings per share: NT$0.52; earnings per ADS: US$0.087

[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 Mar 31, 2013, the three-month period ending Dec 31, 2012, and the equivalent three-month period that ended Mar 31, 2012.  For all 1Q13 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Mar 31, 2013 exchange rate of NT$29.83 per U.S. Dollar.

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its first consolidated operating results under TIFRSs framework for the first quarter of 2013.

Revenue was NT$27.78 billion, with gross margin at 16.2% and operating margin at 1.1%.  The net income attributable to the stockholders of the parent was NT$6.59 billion, and the earnings per ordinary share were NT$0.52.

Mr. Po-Wen Yen, CEO of UMC, said "UMC's overall 1Q13 operating results exceeded expectations.  The foundry segment posted revenues of NT$26.37 billion, profit margin from foundry operations was 4.1% and wafer shipments reached 1,125 thousand 8-inch equivalent wafers, bringing overall capacity utilization to 78%.  Revenue contribution from 40nm and below technologies grew from 15% in 4Q12 to 18% in 1Q13.  The New Business segment recorded NT$1.44 billion in revenue, with operating loss of NT$0.79 billion.  Losses mainly came from the solar subsidiaries as competition intensified across the industry."

CEO Yen added, "As part of our long-term commitment to customers, we have continued to dedicate resources towards R&D and capacity expansion for 28nm and below technologies.  We are also developing specialty technologies that cover a wide range of geometries to provide more comprehensive solutions, demonstrating our flexible approach to accommodate different customer business models.  Recently, we jointly collaborated with a leading NOR flash solution provider, Spansion, to deliver a System-on-Chip (SoC) platform on UMC's high-performance 40nm process.  Leveraging the core expertise of the R&D, we are committed to develop solid partnerships by offering flexible, cost effective and innovative technologies to customers in more diversified market segments." 

CEO Yen continued, "Following several months of inventory correction in the semiconductor market, demand has stabilized.  With increasing demand led by the communication sector, we anticipate 2Q foundry operating results to improve, with wafer shipments projected to exceed 10% growth.  In the meantime, while we race ahead with R&D efforts and capacity expansion, management's priority is also focused on maintaining shareholders' interest.  Considering the overall financial health and long term capital needs of the company, the Board of Directors has proposed for shareholders' approval a cash dividend payout of NT$0.40 per share, which constitutes about a 60% cash dividend payout ratio.  Looking forward, we will sustain our efforts toward improving operating results solidifying UMC's profitability and maintaining business growth to maximize benefits to shareholders and customers."

Summary of Operating Results

Operating Results

(Amount: NT$ million)

1Q13

4Q12

QoQ %
change

1Q12

YoY %
change

Revenue

27,781

28,854

(3.7)

26,269

5.8

Gross Profit

4,492

3,225

39.3

4,022

11.7

Operating Expenses

(4,178)

(3,950)

5.8

(3,791)

10.2

Other Operating Income (Expenses)

(20)

(125)

(84.0)

34

-

Operating Income (Loss)

294

(850)

-

265

10.9

Non-Operating Income

7,249

1,380

425.3

1,008

619.1

Net Income Attributable to the Stockholders of the Parent

6,593

739

792.2

1,294

409.5

EPS   (NT$ per share)

0.52

0.06


0.10


       (US$ per ADS[2])

0.087

0.010


0.017


[2] One ADS represents five Taiwan-listed ordinary shares.


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