UMC Reports Second Quarter 2015 Results
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UMC Reports Second Quarter 2015 Results

2Q results meet guidance; inventory correction to continue through 2H15

(PRNewswire) —

Second Quarter 2015 Overview[1]:

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2015.

Revenue was NT$38.01 billion, with gross margin at 22.9% and operating margin at 10.2%. Net income attributable to the stockholders of the parent was NT$4.60 billion, with earnings per ordinary share of NT$0.37.

Po-Wen Yen, CEO of UMC, said "In the second quarter of 2015, our foundry business performed within expectations, posting NT$36.52 billion in revenues and gross margin of 25.1%. Wafer shipments reached an all-time high of 1.54 million 8-inch equivalent wafers, leading to an overall capacity utilization rate of 94%. Our 28nm shipments continued to increase as 2Q15 contribution reached 11% of sales, primarily from the communication sector. The New Business segment recorded NT$1.83 billion in revenue, with a net loss of NT$170 million. Topcell Solar Inc. officially merged into Motech Industries Inc. on June 1, 2015, resulting in UMC owning approximately 9% of Motech equity shares. As such, we will no longer consolidate its operating performance into UMC's financial statements."

CEO Yen continued, "Looking into 3Q, the limited end-market visibility and inventory correction we mentioned during our 1Q conference call is expected to continue. Current weakness in overall demand, partly due to the uncertainties in economic outlook, will prolong the inventory adjustment through the second half of 2015. However, we continue to enhance our foundry services, such as our recently announced 14nm FinFET IP collaborations with Synopsys and ARM to accelerate process verification on our 14nm platform. UMC also announced the availability of a new 55nm ultra-low-power process from ARM, aimed to maximize battery life for IoT applications. For Through-Silicon-Via (TSV), we recently ramped to volume production our TSV and silicon interposer process used on AMD's flagship Radeon GPU. These engineering efforts will strengthen our advanced and mature node offering and enhance UMC's competitive edge in the foundry industry. In addition, shareholders have approved a dividend payout of NT$0.55 per share for fiscal 2014, balancing UMC's commitment to shareholders while maximizing the opportunities towards business growth. UMC strives to provide enhanced corporate profitability by delivering the highest quality manufacturing services in order to ensure long term shareholder value."


Summary of Operating Results

Operating Results

(Amount: NT$ million)

  2Q15

  1Q15

QoQ %
change

 2Q14

YoY %
change

Net Operating Revenues

38,012

37,650

1.0

35,869

6.0

Gross Profit

8,723

9,155

(4.7)

8,207

6.3

Operating Expenses

(4,864)

(4,914)

(1.0)

(5,280)

(7.9)

Net Other Operating Income and Expenses

17

(142)

-

(10)

-

Operating Income

3,876

4,099

(5.4)

2,917

32.9

Net Non-Operating Income and Expenses

1,304

255

411.4

937

39.2

Net Income Attributable to Stockholders of the Parent

4,600

3,980

15.6

3,482

32.1

EPS   (NT$ per share)

0.37

0.32


0.28


          (US$ per ADS)

0.060

0.052


0.045


During 2Q15, higher wafers shipments led to NT$36.52 billion in revenue from the foundry segment. New Business recorded NT$1.83 billion in sales, resulting in a consolidated revenue of NT$38.01 billion, up 1.0% from 1Q15. Net income from the foundry business reached NT$4.67 billion, while New Business segment posted NT$170 million in net loss. On a consolidated basis, gross profit reached NT$8.72 billion, or 22.9% of revenue, while operating income was NT$3.88 billion or 10.2% of revenue. Net income attributable to the stockholders of the parent was NT$4.60 billion, compared to NT$3.98 billion in 1Q15.

Earnings per ordinary share for the quarter were NT$0.37. Earnings per ADS were US$0.060. The basic weighted average number of outstanding shares in 2Q15 was 12,572,497,200, compared with 12,526,260,458 shares in 1Q15 and 12,489,095,718 shares in 2Q14. The diluted weighted average number of outstanding shares was 13,222,544,584 in 2Q15, compared with 12,660,046,525 shares in 1Q15 and 12,607,860,758 shares in 2Q14. The fully diluted share count on June 30, 2015 was approximately 13,810,979,000. On June 30, 2015, UMC held 134 million treasury shares acquired from the 15th share buy-back program.

Detailed Financials Section

COGS & Expenses

(Amount: NT$ million)

2Q15

1Q15

QoQ %
change

2Q14

YoY %
change

Net Operating Revenues

38,012

37,650

1.0

35,869

6.0

COGS

(29,289)

(28,495)

2.8

(27,662)

5.9

  Depreciation

(9,404)

(9,115)

3.2

(8,662)

8.6

  Other Mfg. Costs

(19,885)

(19,380)

2.6

(19,000)

4.7

Gross Profit

8,723

9,155

(4.7)

8,207

6.3

Gross Margin (%)

22.9%

24.3%


22.9%


Operating Expenses

(4,864)

(4,914)

(1.0)

(5,280)

(7.9)

  G&A

(919)

(953)

(3.6)

(857)

7.2

  Sales & Marketing

(930)

(1,045)

(11.0)

(1,097)

(15.2)

  R&D

(3,015)

(2,916)

3.4

(3,326)

(9.4)

Net Other Operating

Income & Expenses

17

(142)

-

(10)

-

Operating Income

3,876

4,099

(5.4)

2,917

32.9

Foundry revenue grew 1.5% to NT$36.52 billion and New Business segment recorded NT$1.83 billion, leading to a consolidated revenue of NT$38.01 billion. Depreciation increased 3.2% from 1Q15 to NT$9.40 billion, mainly from 28nm capacity deployment. Other manufacturing costs was up 2.6% QoQ to NT$19.89 billion, mostly due to higher wafer shipments in 2Q15. Operating expenses stayed almost flat at NT$4.86 billion. Net operating income was NT$3.88 billion.

Non-Operating Income and Expenses

(Amount: NT$ million)

2Q15

1Q15

2Q14

Non-Operating Income and Expenses

1,304

255

937

Net Interest Income and Expenses

(46)

(27)

(149)

Net Investment Gain and Loss

(247)

126

188

Gain and Loss on Disposal of Investment

1,319

190

792

Exchange Gain and Loss

11

(77)

(4)

Other Gain and Loss

267

43

110

Net non-operating income in 2Q15 was NT$1.30 billion, primarily from the gains recognized in the reclassification of available for sale financial assets into investments accounted for under the equity method and the merger of UMC's solar subsidiary Topcell into Motech.


Cash Flow Summary

(Amount: NT$ million)

For the 3-Month Period Ended

Jun. 30, 2015

For the 3-Month Period Ended

Mar. 31, 2015

Cash Flow from Operating Activities

11,459

16,870

  Net income before tax

5,180

4,354

  Depreciation & Amortization

Bad debt reversal

          11,194

                (173)

     10,748

                  (9)

Gain on disposal of investments

(1,319)

(190)

Impairment loss on financial assets

416

63

  Exchange gain on financial assets and liabilities

(204)

(13)

  Changes in working capital

Income tax paid

             (2,066)

             (1,305)

          2,315

             (366)

  Other

(264)

(32)

Cash Flow from Investing Activities

(14,757)

(16,498)

  Capital expenditures

(12,034)

(14,893)

  Acquisition of available-for-sale financial assets

   Disposal of subsidiaries

         (665)

             (835)

       (1,897)

                 -

     Proceeds from disposal of non-current      assets held for sale

-

642

     Changes in refundable deposits

(1,286)

(1)

  Changes in other assets-others

(54)

(517)

  Other

117

168

Cash Flow from Financing Activities

13,824

8,155

  Bank loans

(5,253)

1,716

Bonds Issued

18,425

-

     Increase in other financial liabilities

-

6,108

  Treasury stock sold to employees

   Other

                  677

                  (25)

                     -

            331

Effect of Exchange Rate

(443)

(776)

Net Cash Flow

10,083

7,751

    Beginning balance

    Changes in non-current assets held for     sale

     53,632

                                        331

             45,701

                                       180

Ending Balance

64,046

53,632

Cash inflow from operations was NT$11.46 billion. In 2Q15, CAPEX spending was NT$12.03 billion, including NT$11.94 billion for the foundry segment, resulting in a free cash outflow of NT$575 million. Cash inflow from financing was NT$13.82 billion, primarily from NT$18.43 billion in the issuance of convertible bonds. Over the next 12 months, the company expects to repay NT$3.94 billion in bank loans.

Current Assets

(Amount: NT$ billion)

2Q15

1Q15

 2Q14

Cash and Cash Equivalents

64.05

53.63

49.63

Notes & Accounts Receivable

21.44

20.62

21.62

  Days Sales Outstanding

50

52

52

Inventories, net

16.05

15.64

13.84

  Days of Inventory

49

49

47

Total Current Assets

109.22

101.03

98.37

Cash and cash equivalents increased to NT$64.05 billion, mainly due to NT$18.43 billion from the issuance of convertible bonds. Days of sales outstanding decreased by 2 days to 50 days. Days of inventory remained unchanged at 49 days.

Liabilities

(Amount: NT$ billion)

2Q15

1Q15

2Q14

Total Current Liabilities

43.49

44.44

49.68

  Notes & Accounts Payable

6.47

6.38

6.85

  Short-Term Credit / Bonds

5.33

10.85

15.75

  Payables on Equipment

9.30

7.41

7.19

Dividends payable

6.94

-

6.25

  Other

15.45

19.80

13.64

Long-Term Credit / Bonds

50.75

34.89

31.92

Long-Term Investment Liabilities

5.98

6.03

-

Total Liabilities

106.87

91.80

88.69

Debt to Equity

48%

40%

41%

Current liabilities decreased to NT$43.49 billion, mainly from a NT$5.52 billion decrease in short term credit and a NT$6.94 billion increase from the accrual for 2014 dividends. Long-term credit and bond increased to NT$50.75 billion mainly due to the issuance of convertible bond, increasing debt to equity ratio to 48%.

Analysis of Revenue[2] for Foundry Segment

Revenue Breakdown by Region

Region

2Q15

1Q15

4Q14

3Q14

2Q14

North America

46%

47%

45%

45%

43%

Asia Pacific

42%

40%

42%

44%

46%

Europe

6%

7%

8%

6%

5%

Japan

6%

6%

5%

5%

6%

Revenue contribution from Asia- Pacific increased to 42% in 2Q15, partly from higher consumer demand from Asian customers.

Revenue Breakdown by Geometry

Geometry

2Q15

1Q15

4Q14

3Q14

2Q14

28nm and below

11%

9%

7%

3%

1%

28nm<x<=40nm

22%

24%

21%

24%

21%

40nm<x<=65nm

21%

23%

24%

26%

31%

65nm<x<=90nm

6%

5%

7%

7%

6%

90nm<x<=0.13um

14%

13%

14%

14%

13%

0.13um<x<=0.18um

12%

12%

12%

12%

13%

0.18um<x<=0.35um

11%

11%

12%

11%

12%

0.5um and above

3%

3%

3%

3%

3%

28nm business grew to 11% of revenue in 2Q15, while 40nm accounted for 22% of sales.

Revenue Breakdown by Customer Type

Customer Type

2Q15

1Q15

4Q14

3Q14

2Q14

Fabless

89%

90%

90%

91%

90%

IDM

11%

10%

10%

9%

10%

Revenue from fabless customers decreased to 89% in 2Q15.

Revenue Breakdown by Application (1)

Application

2Q15

1Q15

4Q14

3Q14

2Q14

Computer

12%

13%

14%

15%

18%

Communication

55%

56%

54%

54%

49%

Consumer

28%

26%

28%

28%

29%

Others

5%

5%

4%

3%

4%

The consumer segment showed the strongest sequential growth, accounting for 28% of sales in 2Q15, while communication revenue contribution decreased by 1% to 55%.

(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset. Communication consists of handset components, broadband, WLAN, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc.

Blended ASP Trend for Foundry Segment

Blended average selling price (ASP) was flat in 2Q15.
(To view ASP trend, visit http://www.umc.com/english/investors/2Q15_ASP_trend.asp )

Shipment and Utilization Rate[3] for Foundry Segment

Wafer Shipments


2Q15

1Q15

4Q14

3Q14

2Q14

Wafer Shipments
(8" K equivalents)

1,536

1,481

1,431

1,462

1,426


Quarterly Capacity Utilization Rate


2Q15

1Q15

4Q14

3Q14

2Q14

Utilization Rate

94%

93%

93%

93%

90%

Total Capacity
(8" K equivalents)

1,659

1,583

1,577

1,586

1,597

Capacity[4]for Foundry Segment

Wafer shipments increased 3.7% quarterly to 1,536K in 2Q15. Quarterly capacity grew to 1,659K, resulting in an overall utilization rate of 94% for the quarter.

Capacity[4] for Foundry Segment

Overall capacity in the second quarter was 1,659K 8-inch equivalent wafers. Deployment of 28nm capacity at Fab12A increased quarterly capacity from 183K in 1Q15 to 198K in 2Q15. Capacity expansion for 40nm at Fab12i continued, bringing the quarterly capacity from 139K in 1Q15 to 144K in 2Q15. Projected capacity during the third quarter will grow by 1.6% to 1,685K 8-inch equivalent wafers due to ongoing 28nm capacity deployment at Fab12A and continuous 8" expansion at Fab8N.

Annual Capacity in

thousands of wafers


Quarterly Capacity in

thousands of wafers

FAB

Geometry
(um)

2014

2013

2012

2011


FAB

3Q15E

2Q15

1Q15

4Q14

Fab6A

6"

3.5 - 0.45

448

448

481

538


WTK*

99

113

-

-

Fab8A

8"

0.5 - 0.25

813

813

815

813


Fab6A

-

-

111

113

Fab8C

8"

0.35 - 0.11

347

347

360

359


Fab8A

204

204

201

204

Fab8D

8"

0.13 - 0.09

358

382

371

364


Fab8C

87

87

86

87

Fab8E

8"

0.5 - 0.18

418

418

449

469


Fab8D

86

86

84

86

Fab8F

8"

0.18 - 0.11

388

388

389

388


Fab8E

105

105

103

105

Fab8S

8"

0.18 - 0.11

335

335

348

307


Fab8F

98

98

96

98

Fab8N

8"

0.5 - 0.13

547

469

-

-


Fab8S

84

84

83

84

Fab12A

12"

0.18 - 0.028

700

651

579

501


Fab8N

178

162

144

140

Fab12i

12"

0.13 - 0.040

573

550

537

530


Fab12A

206

198

183

180

Total(1) 

6,323

6,107

5,514

5,322


Fab12i

144

144

139

135

YoY Growth Rate

4%

11%

4%

11%


Total

1,685

1,659

1,583

1,577


2011~2012 figures account for UMC parent company only.

(1)One 6-inch wafer is converted into 0.5625(62/82) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25(122/82) 8-inch equivalent wafers. Capacity total figures are expressed in 8-inch equivalent wafers.

*UMC sold part of plants and equipment to WTK; WTK figures represent 6-inch CMOS capacity.

 

CAPEX for Foundry Segment

Capital Expenditure by Year - in US$ billion

Year

2014

2013

2012

2011

2010

CAPEX

$ 1.4

$ 1.1

$ 1.7

$ 1.6

$ 1.8

2010~2012 figures account for UMC parent company only.

2015 CAPEX Plan

8"

12"

Total

13%

87%

US$1.8 billion

In 2Q15, CAPEX spending was US$385 million. First half 2015 capital expenditures totaled US$856 million. 2015 CAPEX is expected to be approximately US$1.8 billion, with 87% of the amount used for 12" advanced capacity expansion.

Third Quarter of 2015 Outlook & Guidance

Quarter-over-Quarter Guidance:

Recent Developments / Announcements

Jul. 20, 2015

UMC Enters Volume Production for TSV Process on AMD's High-Performance GPU

Jun. 22, 2015

Synopsys and UMC Expand 14-nm FinFET Collaboration

Jun. 22, 2015

UMC Collaborates with ARM to Validate UMC 14nm FinFET Process

Jun. 9, 2015

UMC Shareholders Elect 13th Term of Directors at Annual Shareholders Meeting

- The consolidated revenue for 2014 was NT$140,012 million and net income attributable to the shareholder of the parent was NT$12,141 million, with earnings per share of NT$0.97
- Shareholders elect Dr. Wenyi Chu as the independent Board of Director
- Shareholder cash dividend of NT$6,939 million, or approximately NT$0.55 per share
- Employee cash bonus of NT$1,459 million

May 26, 2015

UMC Unveils UMC AutoSM Platform to Enable Automotive IC Designs

May 18, 2015

ARM and UMC Target 55nm ULP IP Solution for Energy-Efficient Applications

Apr. 29, 2015

UMC 1Q 2015 Financial Results

 

Please visit UMC's website for further details regarding the above announcements

Conference Call / Webcast Announcement

Wednesday, July 29, 2015

Time:

 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)

Dial-in numbers and Access Codes:

USA Toll Free:

1-800 871-3110, 1-888 700-7397

Taiwan Number:

02-2192-8016

Other Areas:

+886-2-2192-8016

Access Code:

UMC

A live webcast and replay of the 2Q15 results announcement will be available at www.umc.com under the "Investors / Events" section.

About UMC

UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced IC production for applications spanning every major sector of the electronics industry. UMC's robust foundry solutions enable chip designers to leverage the company's sophisticated technology and manufacturing, which include volume production 28nm gate-last High-K/Metal Gate technology, ultra-low power platform processes specifically engineered for Internet of Things (IoT) applications and the automotive industry's highest-rated AEC-Q100 Grade-0 manufacturing capabilities for production of ICs found in cars. UMC's 10 wafer fabs are strategically located throughout Asia and are able to produce over 500,000 wafers per month. The company employs more than 17,000 people worldwide, with offices in Taiwan, mainland China, Europe, Japan, Korea, Singapore, and the United States. UMC can be found on the web at http://www.umc.com

Note from UMC Concerning Forward-Looking Statements

Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Forms F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

Safe Harbor Statements

This release contains forward-looking statements.  These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995.  You can identify these forward-looking statements by use of words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning.  You can also identify them by the fact that they do not relate strictly to historical or current facts.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements.  Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international global business activities; (iv) our dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates.  Further information regarding these and other risks is included in UMC's  filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Form F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

The financial statements included in this release are prepared and published in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from ROC GAAP and US GAAP.

This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.

Contacts:

Bowen Huang / David Wong
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16900
Email Contact
Email Contact

[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 Jun 30, 2015, the three-month period ending Mar 31, 2015, and the equivalent three-month period that ended Jun 30, 2014. For all 2Q15 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Jun 30, 2015 exchange rate of NT$ 30.85 per U.S. Dollar.

[2] Revenue in this section represents wafer sales

[3] Utilization Rate = Quarterly Wafer Out / Quarterly Capacity

[4] Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.

- FINANCIAL TABLES TO FOLLOW -

 


                UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES  



   Consolidated Condensed Balance Sheet



As of June 30, 2015





 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)


























June 30, 2015






US$


NT$


%





Assets










Current assets










 Cash and cash equivalents

2,076


64,046


19.3%





 Financial assets at fair value through profit or loss, current

27


825


0.2%





 Notes & Accounts receivable, net

695


21,435


6.5%





 Inventories, net

520


16,045


4.8%





 Other current assets

223


6,870


2.2%





    Total current assets

3,541


109,221


33.0%















Non-current assets










 Funds and investments

1,247


38,475


11.6%





 Property, plant and equipment

5,444


167,960


50.7%





 Other non-current assets

506


15,600


4.7%





    Total non-current assets

7,197


222,035


67.0%





Total assets

10,738


331,256


100.0%















Liabilities










Current liabilities










 Short-term loans

45


1,397


0.4%





 Financial liabilities at fair value through profit or loss, current

0


7


0.0%





 Payables

986


30,404


9.2%





 Dividends payable

225


6,939


2.1%





 Current portion of long-term liabilities

128


3,937


1.2%





 Other current liabilities

25


801


0.2%





    Total current liabilities

1,409


43,485


13.1%















Non-current liabilities










 Bonds payable

1,344


41,467


12.5%





 Long-term loans

301


9,280


2.8%





 Other non-current liabilities

410


12,641


3.9%





    Total non-current liabilities

2,055


63,388


19.2%





    Total liabilities

3,464


106,873


32.3%















Equity










Equity attributable to the parent company










Capital

4,135


127,581


38.5%





Additional paid-in capital

1,343


41,411


12.5%





Retained earnings, unrealized gain or loss on available-for-sale
    financial assets and exchange differences on translation of
    foreign operations

1,728


53,310


16.1%





Treasury stock

(53)


(1,627)


(0.5%)





     Total equity attributable to the parent company

7,153


220,675


66.6%





Non-controlling interests

121


3,708


1.1%





     Total equity

7,274


224,383


67.7%





Total liabilities and equity

10,738


331,256


100.0%











































































NoteNew Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2015 exchange rate of NT $30.85 per U.S. Dollar.












 

 

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

Except Per Share and Per ADS Data










































Year over Year Comparison


Quarter over Quarter Comparison


Three-Month Period Ended




Three-Month Period Ended




June 30, 2015


June 30, 2014


%


June 30, 2015


March 31, 2015


%


US$


NT$


US$


NT$


Chg.


US$


NT$


US$


NT$


Chg.

Net operating revenues

1,232


38,012


1,163


35,869


6.0%


1,232


38,012


1,220


37,650


1.0%

Operating costs

(949)


(29,289)


(897)


(27,662)


5.9%


(949)


(29,289)


(923)


(28,495)


2.8%

Gross profit

283


8,723


266


8,207


6.3%


283


8,723


297


9,155


(4.7%)


22.9%


22.9%


22.9%


22.9%




22.9%


22.9%


24.3%


24.3%



Operating expenses




















  - Sales and marketing expenses

(30)


(930)


(35)


(1,097)


(15.2%)


(30)


(930)


(34)


(1,045)


(11.0%)

  - General and administrative expenses

(30)


(919)


(28)


(857)


7.2%


(30)


(919)


(31)


(953)


(3.6%)

  - Research and development expenses

(98)


(3,015)


(108)


(3,326)


(9.4%)


(98)


(3,015)


(94)


(2,916)


3.4%

      Subtotal

(158)


(4,864)


(171)


(5,280)


(7.9%)


(158)


(4,864)


(159)


(4,914)


(1.0%)

Net other operating income and expenses

1


17


(0)


(10)


-


1


17


(5)


(142)


-

Operating income

126


3,876


95


2,917


32.9%


126


3,876


133


4,099


(5.4%)


10.2%


10.2%


8.1%


8.1%




10.2%


10.2%


10.9%


10.9%























Net non-operating income and expenses

42


1,304


30


937


39.2%


42


1,304


8


255


100.0%

Income from continuing operations before
   income tax

168


5,180


125


3,854


34.4%


168


5,180


141


4,354


19.0%


13.6%


13.6%


10.7%


10.7%




13.6%


13.6%


11.6%


11.6%























Income tax expense

(21)


(635)


(17)


(528)


20.3%


(21)


(635)


(14)


(442)


43.7%

Net income

147


4,545


108


3,326


36.7%


147


4,545


127


3,912


16.2%


12.0%


12.0%


9.3%


9.3%




12.0%


12.0%


10.4%


10.4%























Other comprehensive income (loss)

(162)


(5,006)


3


103


-


(162)


(5,006)


(4)


(107)


100.0%





















Total comprehensive income (loss)

(15)


(461)


111


3,429


-


(15)


(461)


123


3,805


-





















    Net income attributable to:




















Stockholders of the parent

149


4,600


113


3,482


32.1%


149


4,600


129


3,980


15.6%

Non-controlling interests

(2)


(55)


(5)


(156)


(64.7%)


(2)


(55)


(2)


(68)


(19.1%)





















    Comprehensive income (loss) attributable to:




















Stockholders of the parent

(12)


(369)


118


3,636


-


(12)


(369)


127


3,910


-

Non-controlling interests

(3)


(92)


(7)


(207)


(55.6%)


(3)


(92)


(4)


(105)


(12.4%)





















Earnings per share-basic

0.012


0.37


0.009


0.28




0.012


0.37


0.010


0.32



Earnings per ADS (2)

0.060


1.85


0.045


1.40




0.060


1.85


0.052


1.60



Weighted average number of shares




















outstanding (in millions)



12,572




12,489






12,572




12,526











































Notes:




















(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2015 exchange rate of NT $30.85 per U.S. Dollar.









(2) 1 ADS equals 5 common shares.







 

 

 

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

Except Per Share and Per ADS Data














For the Three-Month Period Ended


For the Six-Month Period Ended


June 30, 2015


June 30, 2015


US$


NT$


%


US$


 NT$ 


%

Net operating revenues

1,232


38,012


100.0%


2,453


75,661


100.0%

Operating costs

(949)


(29,289)


(77.1%)


(1,873)


(57,782)


(76.4%)

Gross profit

283


8,723


22.9%


580


17,879


23.6%

























Operating expenses












  - Sales and marketing expenses

(30)


(930)


(2.5%)


(64)


(1,974)


(2.6%)

  - General and administrative expenses

(30)


(919)


(2.4%)


(61)


(1,872)


(2.5%)

  - Research and development expenses

(98)


(3,015)


(7.9%)


(192)


(5,932)


(7.8%)

      Subtotal

(158)


(4,864)


(12.8%)


(317)


(9,778)


(12.9%)

Net other operating income and expenses

1


17


0.1%


(4)


(126)


(0.2%)

Operating income

126


3,876


10.2%


259


7,975


10.5%













Net non-operating income and expenses

42


1,304


3.4%


50


1,560


2.1%

Income from continuing operations before
   income tax

168


5,180


13.6%


309


9,535


12.6%

























Income tax expense

(21)


(635)


(1.6%)


(35)


(1,077)


(1.4%)

Net income 

147


4,545


12.0%


274


8,458


11.2%













Other comprehensive loss

(162)


(5,006)


(13.2%)


(166)


(5,114)


(6.8%)













Total comprehensive income (loss)

(15)


(461)


(1.2%)


108


3,344


4.4%













    Net income attributable to:












Stockholders of the parent

149


4,600


12.1%


278


8,580


11.3%

Non-controlling interests

(2)


(55)


(0.1%)


(4)


(122)


(0.1%)













    Comprehensive income (loss) attributable to:












Stockholders of the parent

(12)


(369)


(1.0%)


115


3,541


4.7%

Non-controlling interests

(3)


(92)


(0.2%)


(7)


(197)


(0.3%)













Earnings per share-basic

0.012


0.37




0.022


0.68



Earnings per ADS (2)

0.060


1.85




0.110


3.40















Weighted average number of shares
     outstanding (in millions)



12,572






12,550















Notes:












(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2015 exchange rate of NT $30.85 per U.S. Dollar.



(2) 1 ADS equals 5 common shares.












 

 

 

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statement of Cash Flows

For The Six-Month Period Ended June 30, 2015

 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)







USD


NTD


Cash flows from operating activities :





    Net income before tax

309


9,535


    Depreciation & Amortization

711


21,942


    Impairment loss on financial assets

16


479


    Impairment loss on non-financial assets

7


226


    Gain on disposal of investments

(49)


(1,508)


    Changes in assets, liabilities and others

(22)


(674)


    Income tax paid

(54)


(1,671)


Net cash provided by operating activities

918


28,329







Cash flows from investing activities :





    Acquisition of available-for-sale financial assets

(83)


(2,562)


    Proceeds from disposal of available-for-sale financial assets

24


728


    Acquisition of subsidiaries (net of cash acquired)

13


415


    Disposal of subsidiaries

(27)


(835)


    Acquisition of property, plant and equipment

(873)


(26,927)


    Proceeds from disposal of non-current assets held for sale

21


642


    Acquisition of intangible assets

(22)


(693)


    Increase in refundable deposits

(42)


(1,286)


    Others

(24)


(737)


Net cash used in investing activities

(1,013)


(31,255)







Cash flows from financing activities :





    Decrease in short-term loans

(126)


(3,880)


    Proceeds from bonds issued

597


18,425


    Proceeds from long-term loans

124


3,827


    Repayments of long-term loans

(113)


(3,484)


    Exercise of employee stock options

9


289


    Treasury stock sold to employees

22


677


    Increase in other financial liabilities

198


6,108


    Others

1


17


Net cash provided by financing activities

712


21,979







Effect of exchange rate changes on cash and cash equivalents

(39)


(1,219)


Net increase in cash and cash equivalents

578


17,834







Cash and cash equivalents at beginning of period

1,498


46,212







Cash and cash equivalents at end of period

2,076


64,046












Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2015 exchange rate of NT $30.85 per U.S. Dollar.


 

To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/umc-reports-second-quarter-2015-results-300120375.html

SOURCE United Microelectronics Corporation

Contact:
United Microelectronics Corporation