Significant revenue growth will drive 2Q to operating profitability
TAIPEI, Taiwan, April 29 /PRNewswire-Asia-FirstCall/ --
First Quarter 2009 Overview (Note 1):
-- Revenue decreased 41.5% sequentially to NT$10.84 billion (US$319
million)
-- Gross margin of -40%, operating margin of -67.5%
-- Net loss of NT$8.16 billion (US$240 million)
-- Operating Cash inflow of NT$3.75 billion, with cash & cash eq. of
NT$35.91 billion
-- Loss per share of NT$0.64; Loss per ADS of US$0.094
Note 1: Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with ROC GAAP, which differ in some material respects from generally accepted accounting principles in the United States. They are un-audited, unconsolidated, and represent comparisons among the three-month period ending March 31, 2009, the three-month period ending December 31, 2008, and the equivalent three-month period that ended March 31, 2008. For all 1Q09 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the March 31, 2009 exchange rate of NT$33.95 per U.S. Dollar.
United Microelectronics Corporation (NYSE: UMC) (TSE: 2303) ("UMC" or "the Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the first quarter of 2009. Revenue decreased 41.5% quarter-over-quarter to NT$10.84 billion, from NT$18.54 billion in 4Q08, and decreased 54.8% year-over-year from NT$24 billion in 1Q08. Gross margin for the quarter was -40%, operating margin was -67.5%. Net loss in 1Q09 was NT$8.16 billion, with loss-per-share at NT$0.64.
Dr. Shih-Wei Sun, CEO of UMC said, "Q1 2009 was challenging for UMC, due to a sharp drop in customer demand caused by the global economic downturn. As a result, UMC's wafer shipments for the quarter dropped to 384 thousand 8-inch equivalent wafers with utilization rate at 30%. UMC also reported higher operating costs associated with the adoption of ROC SFAS No.10, resulting in gross margin of -40%. Despite these factors, UMC remained financially solid in Q1, maintaining positive free cash flow of NT$2.18 billion and cash equivalents at NT$35.91 billion. However, recent orders indicate strong demand for Q2, confirming our assessment from last quarter's conference that demand had already bottomed out. UMC expects Q2 revenues to grow significantly with loss turning to profit. Moreover, we are optimistic about the longer-term prospect of the foundry industry and demand growth. As global economic uncertainties continue, we will closely watch our customers' inventory consumption, end market demands and the introduction of new applications so that we can quickly respond to any status changes when necessary."
Dr. Sun continued, "With regard to UMC's recent rush orders, we will work diligently to meet urgent order deliveries for these customers. However, our mid- to long-term capacity plans, including capacity conversion to a more favorable technology mix, 45/40nm ramp to 300mm volume production and acquiring the most advanced R&D equipment, are all in progress and fully capable of satisfying our customers' manufacturing requirements."
"UMC's advanced R&D efforts and equipment upgrades will proceed as planned despite economic uncertainties to continuously bolster our long-term competitiveness. For example, we have already delivered customer ICs manufactured on UMC's independently developed high performance 40nm process. The large die-size programmable logic chips are being produced with excellent cycle time and yields. Many other customer 45/40nm designs will enter pilot and verification stages later this year, further contributing to UMC's financial performance when these designs enter volume production. With regard to more advanced 28nm process technology, with several customers involved in the current development stage, we are progressing smoothly at UMC's R&D center in Tainan. For this technology node, UMC will provide low power and high performance Poly/SiON and HK/MG process technologies to meet the performance and power needs of various applications."
Recently, two global semiconductor companies, one from Taiwan and another from the USA, awarded UMC with honors of "2008 Best Fab Award" and "2008 Supplier Excellence Award", respectively. This recognition underscores UMC's strategy of delivering "Customer-Driven Foundry Solutions" to create a win-win situation for UMC and its customers.
Summary of Operating Results
Operating Results
QoQ% YoY%
(Amount: NT$ million) 1Q09 4Q08 change 1Q08 change
Revenue 10,838 18,541 (41.5) 24,003 (54.8)
Gross Profit (Loss) (4,335) (804) 439.2 3,647 --
Operating Expenses (2,982) (3,073) (3.0) (3,386) (11.9)
Operating Income (Loss) (7,317) (3,877) 88.7 261 --
Non-op. Income
(Expenses) (843) (19,081) (95.6) (0) 93,566.7
Net Income (Loss) (8,160) (23,510) (65.3) 206 --
EPS (NT$ per share) (0.64) (1.81) -- 0.02 --
(US$ per ADS) (0.094) (0.267) -- 0.003 --
Revenue decreased 41.5% QoQ to NT$10.84 billion, from NT$18.54 billion in 4Q08, and decreased 54.8% YoY, from NT$24 billion in 1Q08. Weakening global semiconductor demand was the key reason for the decrease in revenue. Gross loss was NT$4.34 billion, or 40% of revenue, compared to NT$0.8 billion, or 4.3% of 4Q08 revenue. Operating loss for the quarter was NT$7.32 billion, or 67.5% of revenue, compared to NT$3.88 billion, or 20.9% of 4Q08 revenue. Except for weakening demand, the weaker gross margin and operating margin in the first quarter also attributed to the adoption of ROC SFAS No.10, which requires fixed production costs allocated to idle capacity to be accounted for in COGS if actual loading is lower than normal capacity and "Loss on decline in market value and obsolescence of inventories" (LCM) to be accounted for in COGS instead of Non-operating expenses. Net loss in 1Q09 was NT$8.16 billion, compared to NT$23.51 billion in 4Q08.
Loss per ordinary share for the quarter was NT$0.64. Loss per ADS was US$0.094. One ADS represents five Taiwan-listed ordinary shares. The basic weighted average number of outstanding shares in 1Q09 was 12,767,114,132, compared with 12,971,740,926 shares in 4Q08 and 13,171,692,578 shares in 1Q08. The diluted weighted average number of outstanding shares was 12,767,114,132 in 1Q09, compared with 12,971,740,926 shares in 4Q08 and 13,418,161,562 shares in 1Q08. The fully diluted share count on March 31, 2009 was 13,576,836 thousand. On March 31, 2009, UMC held 300,000 thousand treasury shares acquired from the 13th share buy-back program. UMC completed the 13th share buy-back program on February 16, 2009.
Detailed Financials Section
COGS & Expenses
QoQ% YoY%
(Amount: NT$ million) 1Q09 4Q08 change 1Q08 change
Revenue 10,838 18,541 (41.5) 24,003 (54.8)
CoGS (15,173) (19,345) (21.6) (20,356) (25.5)
Depreciation (6,973) (7,682) (9.2) (8,098) (13.9)
Other Mfg. Costs (8,200) (11,663) (29.7) (12,258) (33.1)
Gross Profit (4,335) (804) 439.2 3,647 (218.9)
Gross Margin (%) (40.0%) (4.3%) -- 15.2% --
Total Operating Exp. (2,982) (3,073) (2.9) (3,386) (11.9)
G&A (529) (428) 23.7 (636) (16.8)
Sales & Marketing (632) (679) (6.9) (716) (11.7)
R&D (1,821) (1,966) (7.4) (2,034) (10.5)
Operating Income (7,317) (3,877) 88.7 216 (2,903.4)
Operating Margin (%) (67.5%) (20.9%) -- 1.1% --
Depreciation and amortization expenses totaled NT$8.64 billion in 1Q09, compared to NT$9.15 billion in 4Q08. Depreciation within CoGS decreased by 9.2% to NT$6.97 billion. Following the adoption of ROC SFAS No. 10 in 1Q09, CoGS was higher than if the new rule had not been adopted. General and administration expenses increased to NT$529 million, mainly due to the increase in professional fees. Sales & marketing expenses dropped to NT$632 million in connection with the decrease in IP amortization. R&D expenses decreased to NT$1,821 million due to the expense control activities in 1Q09. As a result, total operating expenses decreased 2.9% to NT$2.98 billion. The total R&D expense was 16.8% of revenue in 1Q09.
Non-operating Income (Expenses)
(Amount: NT$ million) 1Q09 4Q08 1Q08
Net Non-operating Income (Exp.) (843) (19,081) 0
Net Interest Income 37 115 116
Net Investment Loss (1,079) (15,465) (224)
Gain on Disposal of Investment 0 52 652
Exchange Gain (Loss) 255 345 (718)
Others (56) (4,128) 174
Net non-operating losses during 1Q09 were NT$843 million. Net investment losses were NT$1.08 billion, including NT$599 million of investment losses accounted for under the equity method and a NT$523 million loss from valuation of ProMos shares. The exchange gain of NT$255 million was partially offset by the valuation loss of forward contract. Therefore, the net exchange gain was NT$78 million.
Cash Flow Summary
For the 3-Month For the 3-Month
(Amount: NT$ million) Period Ended Period Ended
Mar. 31, 2009 Dec. 31, 2008
Cash Flow from Operations 3,746 12,729
Net Income (Loss) (8,160) (23,510)
Depreciation & Amortization 8,640 9,154
Changes in working capital 3,051 4,601
Others 215 22,484
Cash Flow from Investing (1,696) (2,330)
Capital Expenditures (1,568) (1,471)
Others (128) (859)
Cash Flow from Financing (2,393) 508
Long term loan -- 700
Purchase of treasury stock (2,393) (191)
Others -- (1)
Effect of exchange rate 125 23
Net Cash Flow (218) 10,930
Net cash outflow was NT$218 million in 1Q09. Operating cash flow remained positive even when the utilization rate dropped to 30% in the first quarter. The investing cash outflow primarily reflects the CAPEX in 1Q09 of NT$1.57 billion. The NT$2.39 billion of financing cash outflow was from the purchase of treasury stock in the 13th share buy-back program. Free cash flow (Note 2) for 1Q09 was NT$2.18 billion. Over the next 12 months, UMC will not need to repay any term loans.
Note 2: Free cash flow = Operating cash flow - Capital expenditures
Current Assets
(Amount: NT$ billion) 1Q09 4Q08 1Q08
Cash & Cash Equivalents 35.91 36.12 29.63
Notes & Accounts Receivable 6.08 7.80 12.78
Days Sales Outstanding 58 54 50
Inventories 7.05 7.77 11.09
Avg. Inventory Turnover 45 55 51
Total Current Assets 51.50 54.61 60.06
Cash and cash equivalents decreased NT$0.2 billion to NT$35.91 billion.
The decrease in notes & accounts receivable and inventory primarily reflected
the downward trend of the business. Average inventory turnover decreased to
45 days at the end of 1Q09.
Liabilities
(Amount: NT$ billion) 1Q09 4Q08 1Q08
Total Current Liabilities 10.95 11.43 26.98
Accounts Payable 2.58 2.05 4.50
Short-term Credit / Bonds 0.00 0.07 10.96
Others 8.37 9.31 11.52
Long-term Liabilities 8.20 8.13 7.50
Total Liabilities 22.67 23.31 38.08
Debt to Equity 12 % 13 % 17 %
Accounts Payable increased to NT$2.58 billion due to the acquisition of more raw materials during the first quarter. Total liabilities decreased to NT$22.67 billion in 1Q09. UMC's Debt to Equity ratio slightly decreased to 12%.
Analysis of Revenue( Note 3)
Revenue Breakdown by Region
Region 1Q09 4Q08 3Q08 2Q08 1Q08
North America 53% 57% 60% 50% 58%
Asia Pacific 37% 31% 32% 35% 29%
Europe 9% 10% 6% 13% 11%
Japan 1% 2% 2% 2% 2%
The percentage of revenue from the Asia Pacific region increased to 37%, while the percentage of revenue from the North America and the Europe regions decreased to 53% and 9% in 1Q09.
Revenue Breakdown by Geometry
Geometry 1Q09 4Q08 3Q08 2Q08 1Q08
65nm 11% 8% 7% 5% 7%
90nm 27% 27% 31% 31% 30%
90nm < x <=0.13um 16% 22% 20% 21% 21%
0.13um < x <=0.18um 22% 23% 21% 20% 22%
0.18um < x <=0.35um 18% 15% 16% 18% 14%
0.5um and above 6% 5% 5% 5% 6%
The percentage of revenue from 0.13um business decreased to 16%. This was due to decreasing demand for communication chips. The percentage of revenue from 90nm and below was 38% in 1Q09.
Revenue Breakdown by Customer Type
Customer Type 1Q09 4Q08 3Q08 2Q08 1Q08
Fabless 80% 80% 74% 71% 70%
IDM 20% 20% 26% 29% 30%
System 0% 0% 0% 0% 0%
The revenue from Fabless and IDM customers both decreased. The proportion of the revenue from these two types of customers remains unchanged.
Revenue Breakdown by Application (1)
Application 1Q09 4Q08 3Q08 2Q08 1Q08
Computer 15 % 15 % 16 % 17 % 21 %
Communication 57 % 61 % 59 % 58 % 56 %
Consumer 25 % 22 % 23 % 22 % 21 %
Memory 1 % 1 % 1 % 1 % 1 %
Others 2 % 1 % 1 % 2 % 1 %
(1) Computer consists of ICs such as HDD controllers, DVD-ROM/CD-ROM drives ICs, LCD drivers, graphic processors, and PDAs. Communication consists of xDSL, DSP, WLAN, LAN controllers, handset components, caller ID devices, etc. Consumer consists of ICs used for DVD players, game consoles, digital cameras, smart cards, toys, etc. Memory consists of DRAM, SRAM, Flash, EPROM, ROM, and EEPROM.
The percentage of revenue from the communication segment decreased to 57% of total revenue in 1Q09 due to decreasing demand for communication chips, especially in wireline products.
Note 3: Revenue in this section represents wafer sales.
Blended Average Selling Price Trend
The blended average selling price (ASP) decreased by 10% in US dollar terms during 1Q09, due to a larger portion of the process technology mix coming from older process generations as well as short-term volume discounts to customers.
(To view ASP trend, visit
http://www.umc.com/english/investors/1Q09_ASP_trend.asp )
Shipment and Utilization Rate (Note 4)
Wafer Shipments
1Q09 4Q08 3Q08 2Q08 1Q08
Wafer Shipments
('000 8-inch eq.) 384 567 883 875 807
Quarterly Capacity Utilization Rate
1Q09 4Q08 3Q08 2Q08 1Q08
Utilization Rate 30% 48% 79% 85% 73%
Total Capacity
('000 8-inch eq.) 1,151 1,151 1,149 1,107 1,100
Wafer shipments dropped 32.3% sequentially to 384 thousand, a decrease from 567 thousand 8-inch equivalent wafers in the previous quarter. Overall utilization rate for the quarter was 30%.
Note 4: Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
Capacity (5)
Capacity for 1Q09 was 1,151 thousand 8-inch equivalent wafers. The total capacity remained the same as from Q408. The total estimated installed capacity in 2Q09 also remains unchanged, although 65nm capacity is increasing due to internal capacity conversion and 8-inch wafer capacity moving to more advanced nodes.
Annual Capacity in
thousands of 8-inch wafer equivalents
FAB Geometry 2008 2007 2006 2005
(um)
Fab 6A 6" 3.5 - 0.45 328 328 328 344
Fab 8A 8" 0.5 - 0.25 816 816 816 816
Fab 8C 8" 0.35 - 0.15 417 400 400 401
Fab 8D 8" 0.18 - 0.09 257 260 252 274
Fab 8E 8" 0.5 - 0.18 408 408 406 404
Fab 8F 8" 0.25 - 0.15 372 372 372 378
Fab 8S (1) 8" 0.25 - 0.15 291 276 276 278
Fab 12A 12" 0.18 - 0.065 876 847 754 597
Fab 12i (2) 12" 0.13 - 0.065 742 601 413 363
Total (3) 4,507 4,308 4,017 3,855
YoY Growth Rate 5% 7% 4% 22%
Quarterly Capacity in
thousands of 8-inch wafer equivalents
FAB 2Q09E 1Q09 4Q08 3Q08
Fab 6A 82 82 82 82
Fab 8A 204 204 204 204
Fab 8C 102 105 108 108
Fab 8D 66 66 63 63
Fab 8E 102 102 102 102
Fab 8F 96 93 93 93
Fab 8S 75 75 75 75
Fab 12A 222 222 222 220
Fab 12i 202 202 202 202
Total (3) 1,151 1,151 1,151 1,149
(1) Former fab of SiSMC, which was acquired from Silicon Integrated
Systems in July 2004.
(2) Former fab of UMCi, a UMC wholly owned subsidiary in December 2004
that was merged into UMC in April 2005
(3) One 6-inch wafer is converted into 0.5625(6sq/8sq) 8-inch equivalent
wafer; one 12-inch wafer is converted into 2.25(12sq/8sq) 8-inch
equivalent wafers.
Note 5: 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.
CAPEX
UMC Capital Expenditure by Year - in US$ billion
Year 2008 2007 2006 2005 2004 2003
CAPEX $0.35 $0.9 $1.0 $0.7(1) $1.5 $0.4
2009 CAPEX Plan
8" fab 12" fab Total
UMC 4% 96% Not to exceed
US$400 million
The capital expenditure budget for 2009 remains unchanged. By the end of the first quarter, UMC's year-to-date CAPEX totaled US$46 million.
(1) 2005 CAPEX contained UMC 2005 full year CAPEX and UMCi CAPEX during
1Q05.
Recent Developments / Announcements
Apr. 27, 2009 UMC, Springsoft Support Custom Chip Design with 65nm Process
Design Kit
Apr. 27, 2009 UMC Recognized for Excellence by Texas Instruments
Apr. 22, 2009 UMC Announces Board Meeting Approval for New Director
Candidates
- Nine candidates for director nomination, including four
independent directors and one outside director. Board
director re-election will be held during the company's
2009 annual shareholders meeting. Candidates for
independent directors include three current independent
directors: Mr. Chun-Yen Chang, Prof. Chung Laung Liu and
Prof. Paul S.C. Hsu, and one new nominee, Prof. Cheng-Li
Huang.
- The number of independent and outside directors will
account for more than half of the 9 seats of board. This
action will significantly help to increase operating
transparency as well as maintain the interaction and
balance between the board and the management team. By
continuing to enhance the board and corporate governance
structure, UMC hopes to further increase the board's
efficiency and supervision to protect shareholders' value.
- The 2009 Annual General Meeting will be held on Wednesday,
June 10, 2009 at the UMC
Recreation Center in Hsinchu Science Park, Taiwan.
Apr. 8, 2009 UMC Delivers Customer ICs Produced on its High Performance
40nm Logic Technology
Feb. 10, 2009 UMC 4Q 2008 Financial Results
Feb. 9, 2009 UMC 12i Wins MediaTek's 2008 Best Fab Award
Please visit UMC's website http://www.umc.com/english/news/index.asp for further details regarding the above announcements.
Second Quarter of 2009 Outlook & Guidance
Quarter-over-quarter Guidance:
-- Wafer shipments: to increase by more than 110%
-- Wafer ASP in US$: to decrease by less than 5%
-- Capacity Utilization Rates: approximately 75%
-- Profitability: gross profit margin to be approximately 20%
-- The communication segment is expected to be the strongest, followed by
the computer and consumer segments
-- 2009 capex budget: not to exceed US$400 million
Conference Call / Webcast Announcement
Wednesday, April 29, 2009
Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)
Dial-in numbers and Access Codes:
USA Toll Free: 1866 519 4004
UK Toll Free: 0808 234 6646
Singapore and Other Areas: +65 6735 7955
Access Code: UMC
A live webcast and replay of the 1Q09 results announcement will be available at http://www.umc.com under the "Investor Relations \ Investor Events" section.
About UMC
UMC (NYSE: UMC) (TSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing services for applications spanning every major sector of the IC industry. UMC's customer-driven foundry solutions allow chip designers to leverage the strength of the company's leading-edge processes, which include production proven 65nm, 45/40nm, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. The company employs approximately 12,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at http://www.umc.com .
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 on Form F-1, F-3, F-6 and 20-F, 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 unaudited and unconsolidated, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between 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.
- FINANCIAL TABLES TO FOLLOW -
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Balance Sheet
As of Mar 31, 2009
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Mar 31, 2009
US$ NT$ %
ASSETS
Current Assets
Cash and Cash Equivalents 1,058 35,906 17.4%
Financial assets at fair value
through profit or loss, current 33 1,128 0.5%
Notes & Accounts Receivable 179 6,075 2.9%
Inventories 207 7,045 3.4%
Other Current Assets 40 1,347 0.8%
Total Current Assets 1,517 51,501 25.0%
Non-Current Assets
Funds and Long-term Investments 1,586 53,840 26.1%
Property, Plant and Equipment 2,787 94,615 45.9%
Other Assets 182 6,176 3.0%
Total Non-Current Assets 4,555 154,631 75.0%
TOTAL ASSETS 6,072 206,132 100.0%
LIABILITIES
Current Liabilities
Financial liabilities at fair
value through profit or loss,
current 1 33 0.0%
Payables 312 10,582 5.1%
Other Current Liabilities 10 338 0.2%
Total Current Liabilities 323 10,953 5.3%
Non-Current Liabilities
Bonds Payable 221 7,498 3.6%
Long-term Loans 21 700 0.3%
Other Liabilities 103 3,518 1.8%
Total Non-Current Liabilities 345 11,716 5.7%
TOTAL LIABILITIES 668 22,669 11.0%
SHAREHOLDERS' EQUITY
Capital Stock 3,826 129,878 63.0%
Additional Paid-in Capital 1,713 58,163 28.2%
Retained Earnings, Unrealized Gain
on Financial Assets and
Translation Adjustment (61) (2,065) (1.0%)
Treasury Stock (74) (2,513) (1.2%)
TOTAL SHAREHOLDERS' EQUITY 5,404 183,463 89.0%
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 6,072 206,132 100.0%
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
March 31, 2009 exchange rate of NT $33.95 per U.S. Dollar.
All figures are in ROC GAAP.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison
Three-Month Period Ended
Mar 31, 2009 Mar 31, 2008 %
US$ NT$ US$ NT$ Chg.
Net Sales 319 10,838 707 24,003 (54.8%)
Cost of Goods Sold (447) (15,173) (600) (20,356) (25.5%)
Net Gross Profit (Loss) (128) (4,335) 107 3,647 (218.9%)
(40.0%) (40.0%) 15.2% 15.2% --
Operating Expenses
- Sales & Marketing 18 632 21 716 (11.7%)
- General & Administrative 15 529 18 636 (16.8%)
- Research & Development 54 1,821 60 2,034 (10.5%)
87 2,982 99 3,386 (11.9%)
Operating Income (Loss) (215) (7,317) 8 261 (2,903.4%)
(67.5%) (67.5%) 1.1% 1.1% --
Net Non-Operating Income
(Expenses) (25) (843) (0) (0) 93,566.7%
Income (Loss) from continuing
operations before income tax (240) (8,160) 8 261 (3,226.4%)
(75.3%) (75.3%) 1.1% 1.1% --
Income Tax (Expense) Benefit (0) (0) (2) (55) (100.0%)
Net Income (Loss) (240) (8,160) 6 206 (4,061.2%)
(75.3%) (75.3%) 0.9% 0.9% --
Earnings per Share (0.019) (0.64) 0.001 0.02 --
Earnings per ADS (2) (0.094) (3.20) 0.003 0.10 --
Weighted Average Number of
Shares Outstanding
(in millions) -- 12,767 -- 13,172 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March
31, 2009 exchange rate of NT$33.95 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
(Continued)
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Quarter over Quarter Comparison
Three-Month Period Ended
Mar 31, 2009 Dec 31, 2008 %
US$ NT$ US$ NT$ Chg.
Net Sales 319 10,838 546 18,541 (41.5%)
Cost of Goods Sold (447) (15,173) (570) (19,345) (21.6%)
Net Gross Profit (Loss) (128) (4,335) (24) (804) 439.2%
(40.0%) (40.0%) (4.3%) (4.3%)
Operating Expenses
- Sales & Marketing 18 632 20 679 (6.9%)
- General & Administrative 15 529 13 428 23.6%
- Research & Development 54 1,821 58 1,966 (7.4%)
87 2,982 91 3,073 (3.0%)
Operating Income (Loss) (215) (7,317) (115) (3,877) 88.7%
(67.5%) (67.5%) (20.9%) (20.9%) --
Net Non-Operating Income
(Expenses) (25) (843) (561) (19,081) (95.6%)
Income (Loss) from continuing
operations before income tax (240) (8,160) (676) (22,958) (64.5%)
(75.3%) (75.3%) (123.8%) (123.8%) --
Income Tax (Expense) Benefit (0) (0) (16) (552) (100.0%)
Net Income (Loss) (240) (8,160) (692) (23,510) (65.3%)
(75.3%) (75.3%) (126.8%) (126.8%) --
Earnings per Share (0.019) (0.64) (0.053) (1.81) --
Earnings per ADS (2) (0.094) (3.20) (0.267) (9.05) --
Weighted Average Number of
Shares Outstanding
(in millions) -- 12,767 -- 12,972 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March
31, 2009 exchange rate of NT$33.95 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month Period Ended For the Year Ended
Mar 31, 2009 Mar 31, 2009
US$ NT$ % US$ NT$ %
Net Sales 319 10,838 100.0% 319 10,838 100.0%
Cost of Goods Sold (447) (15,173) (140.0%) (447) (15,173) (140.0%)
Net Gross Profit
(Loss) (128) (4,335) (40.0%) (128) (4,335) (40.0%)
Operating Expenses
- Sales & Marketing 18 632 5.8% 18 632 5.8%
- General &
Administrative 15 529 4.9% 15 529 4.9%
- Research &
Development 54 1,821 16.8% 54 1,821 16.8%
87 2,982 27.5% 87 2,982 27.5%
Operating Income
(Loss) (215) (7,317) (67.5%) (215) (7,317) (67.5%)
Net Non-Operating
Income (Expenses) (25) (843) (7.8%) (25) (843) (7.8%)
Income (Loss) from
continuing operations
before income tax (240) (8,160) (75.3%) (240) (8,160) (75.3%)
Income Tax (Expense)
Benefit (0) (0) 0.0% (0) (0) 0.0%
Net Income (Loss) (240) (8,160) (75.3%) (240) (8,160) (75.3%)
Earnings per Share (0.019) (0.64) -- (0.019) (0.64) --
Earnings per ADS (2) (0.094) (3.20) -- (0.094) (3.20) --
Weighted Average
Number of Shares
Outstanding
(in millions) -- 12,767 -- -- 12,767 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March
31, 2009 exchange rate of NT$33.95 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Statement of Cash Flows
For The Three Months Ended Mar. 31, 2009
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
Cash flows from operating activities:
Net Income (240) (8,160)
Depreciation & Amortization 254 8,640
Gain on decline in market value
and obsolescence of inventories (34) (1,156)
Investment loss accounted for
under the equity method 18 599
Loss on valuation of financial
assets and liabilities 19 646
Gain on disposal of property,
plant and equipment (0) (2)
Exchange loss on financial assets
and liabilities 1 22
Amortization of bond discounts 0 1
Amortization of deferred income (2) (52)
Change in assets, liabilities and
others 94 3,208
Net cash provided by operating
activities 110 3,746
Cash flows from investing activities:
Acquisition of long-term
investments accounted for under
the equity method (2) (63)
Proceeds from liquidation of
long-term investments 0 15
Acquisition of property, plant
and equipment (46) (1,568)
Proceeds from disposal of
property, plant and equipment 0 3
Increase in deferred charges (2) (84)
Decrease in other assets - others (0) 1
Net cash used in investing activities (50) (1,696)
Cash flows from financing activities:
Proceeds from long-term Loans 6 200
Repayments of long-term Loans (6) (200)
Purchase of treasury stock (70) (2,393)
Decrease in deposits-in 0 0
Net cash used in financing activities (70) (2,393)
Effect of exchange rate changes on
cash and cash equivalents 4 125
Net decrease in cash and cash
equivalents (6) (218)
Cash and cash equivalents at
beginning of period 1,064 36,124
Cash and cash equivalents at end of
period 1,058 35,906
Note: New Taiwan Dollars have been translated into U.S. Dollars at the Mar
31, 2009 exchange rate of NT$33.95 per U.S. Dollar.
All figures are in ROC GAAP.
Contacts:
Bowen Huang / Tien Yu Tseng
UMC, Investor Relation
Tel: +886-2-2700-6999 ext. 6957
Email: bowen_huang@umc.com / tien_yu_tseng@umc.com
Web site:
http://www.umc.com/
http://www.umc.com/english/investors/4Q08_ASP_trend.asp/