HSINCHU, Aug. 12, 2014 /PRNewswire-FirstCall/ --
2Q14 Highlights (as compared to 1Q14):
- Net Revenue Increased 8.5% to US$181.2 Million from US$167.0 Million
- Gross Profit Increased to US$42.7 Million from US$33.0 Million
- Gross Margin Improved to 23.6% from 19.8%
- Operating Profit Increased to US$28.2 Million from US$20.6 Million
- Net Earnings of US$0.19 Per Basic Common Share and US$0.19 Per Diluted Common Share Compared to US$0.37 Per Basic Common Share and US$0.36 Per Diluted Common Share
- 2Q14 Net income was Negatively Impacted by a Foreign Exchange Loss of US$4.0 Million or US$0.13 Per Basic Share
- Generated US$7.4 Million of Free Cash Flow after US$26.6 Million of CapEx
- Retained Balance of Cash and Cash Equivalents at US$453.9 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 second quarter ended June 30, 2014. All U.S. dollar figures in this release are based on the exchange rate of NT$29.87 against US$1.00 as of June 30, 2014.
Net revenue for the second quarter of 2014 was NT$5,413.4 million or US$181.2 million, an increase of 8.5% from NT$4,989.0 million or US$167.0 million in the first quarter of 2014 and an increase of 9.6% from NT$4,939.2 million or US$165.4 million for the same period in 2013. This is in-line with the Company's guidance for second quarter of 2014 revenue to increase by approximately 8% to 12%, as compared to the first quarter of 2014.
Net income for the second quarter of 2014 was NT$169.8 million or US$5.7 million, and NT$5.70 or US$0.19 per basic common share and NT$5.56 or US$0.19 per diluted common share, as compared to net income for the first quarter of 2014 of NT$331.1 million or US$11.1 million, and NT$11.14 or US$0.37 per basic common share and NT$10.87 or US$0.36 per diluted common share, and compared to net income in the second quarter of 2013 of NT$358.5 million or US$12.0 million, and NT$12.28 or US$0.41 per basic common share and NT$12.00 or US$0.40 per diluted common share. Net income for the second quarter of 2014 was negatively impacted by the accrual of foreign exchange loss of US$4.0 million or US$0.13 per basic share. In addition, net income for the second quarter of 2014 reflects the impact of a US$1.2 million increase in administrative and general expenses and a US$1.9 million increase in other operating expenses, as compared to the first quarter of 2014.
The unaudited consolidated financial results of ChipMOS for the second quarter ended June 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, "Our results for the first half of 2014 have been above seasonal norms and at the high-end of our outlook. We expect our momentum to continue entering the third quarter and our near-term outlook remains positive. Our strong performance was driven by our differentiated end market exposure, customer alignment within our target markets and rationalized capacity. We are not seeing the inventory digestion or overhang that has slowed others in the OSAT sector, which focus on other end markets and customers. We continue to leverage our successful integrated assembly and test business strategy. This helped us further improve gross margin to 23.6% in the quarter. As an indication of our sustained business momentum, our overall utilization rate held steady at 77% -- even after we expanded our assembly capacity by approximately 17% and expanded our bumping capacity by approximately 11%."
"In terms of our market exposure, our memory business in the second quarter benefitted from stronger customer demand. We expect this business momentum will continue in second half of 2014. Demand in our LCD driver business softened slightly entering June, which resulted in the lower utilization of our LCDD capacity and also impacted our revenue in the second quarter. We expect demand in the LCDD business will improve led by the growth in UHD TVs (4K/2K TVs). We remain one of Top 2 largest OSAT providers in the LCDD business and continue to supplement our capacity and capabilities where possible to support our existing customers and new opportunities. Overall, we maintain a very positive near term outlook based on increased demand levels from both existing and new customers. As we have been running near full capacity, our Board of Directors has authorized an upward revision of our full year 2014 CapEx budget to approximately US$110 million from approximately US$80 million prior. We believe our existing facilities can accommodate the additional equipment over the near term needed to meet the higher demand levels for DRAM assembly and LCD driver, including bumping. We are also exploring options to accommodate higher capacity levels over the longer-term, including the potential addition of a new facility, given customers' growth expectations. Any such measure would be incremental to the approximately US$110 million CapEx budget for 2014. We are concurrently executing on our previously stated corporate initiatives, including the successful listing of our subsidiary, ChipMOS Taiwan, onto the Taiwan Stock Exchange on April 11, 2014. While we are not able to provide a timetable for next steps given the sensitivity and fluidity of the situation, we will update the market as material events occur. Overall, our goals remain unchanged, to deliver consistent growth, while focusing on further improving our profitability and building shareholder value."