SMIC Reports 2012 Fourth Quarter Results

SHANGHAI, Feb. 6, 2013 /PRNewswire/ -- Semiconductor Manufacturing International Corporation (NYSE: SMI; SEHK: 981) ("SMIC" or the "Company"), one of the leading semiconductor foundries in the world, today announced its consolidated results of operations for the three months ended December 31, 2012.

Fourth Quarter 2012 Highlights:

• Record high quarterly revenue of $485.9 million in 4Q12, an increase of 5.4% quarter over quarter, and up 67.8% year over year.
• $189.8 million net cash generated from operations in 4Q12, $70.8 million more than 3Q12.
• Net income of $39.7 million attributable to Semiconductor Manufacturing International Corporation in 4Q12, compared to $12.0 million in 3Q12.
• Diluted EPS was $0.06 per ADS.

Fourth Quarter 2012 Guidance:

The following statements are forward looking statements which are based on current expectations and which involve risks and uncertainties, some of which are set forth under "Safe Harbor Statements" below.

• Revenue is expected to be flat to up 2%.
• Gross margin is expected to range from 18% to 20%.
• Operating expenses excluding the effect of foreign exchange and government R&D grants are expected to range from $70 million to $74 million.

First Quarter 2013 Guidance:

The following statements are forward looking statements which are based on current expectations and which involve risks and uncertainties, some of which are set forth under "Safe Harbor Statements" below.

• Revenue is expected to be up 1% to down 2%.
• Gross margin is expected to range from 17.5% to 19.5%.
• Operating expenses excluding the effect of foreign exchange, government R&D grants and assets disposal are expected to range from $74 million to $77 million.
• 2013 capital expenditure for foundry operations is expected to be approximately $600 million.

Dr. Tzu-Yin Chiu, SMIC's Chief Executive Officer and Executive Director, commented, "I am pleased to report that SMIC has outperformed the foundry market cycle again in the fourth quarter of  2012. We achieved record high revenue of $485.9 million, representing sequential growth of 5.4%, and year over year growth of 67.8%. Furthermore, we delivered a net profit attributable to SMIC of $39.7 million in the fourth quarter.

"Based on our unaudited financial statements for the full year of 2012, we also achieved record high revenue of $1.7 billion, representing an increase of 29% year over year. Moreover, we delivered a positive net income attributable to SMIC of $15.9 million in 2012, which is our highest in seven years. In 2012, because of our improved operations, customer service, and quality, SMIC gained significant customer confidence, which contributed to high fab utilization. Apart from improved operations, revenue drivers in 2012 also included demand for mobile devices. Notably, our revenue from China customers grew 34.1% in 2012 over 2011, while employing our full spectrum of technology from 0.35-micron to 40nm.

"Our 45/40nm process commenced volume shipment in the fourth quarter, and its contribution more than tripled quarter-over-quarter to 2.6% of revenue. Our 28nm offering is on track and both HKMG and PolySiON processes are targeted to be ready by the fourth quarter of 2013.

"As the leading and most advanced foundry provider in China, we have upgraded our technology portfolio, services and quality to help all of our customers participate in the rapidly growing China semiconductor market. The latest survey published by the Ministry of Industry and Information Technology's China Software and Integrated Circuit Promotion Center (CSIP) in November 2012 specifies that approximately 75% of Chinese fabless companies choose SMIC as their preferred foundry partner in 2012, a noticeable and significant improvement as compared to 59% in 2011.

"I am very pleased with SMIC's achievements in 2012, and we are starting 2013 with both excitement and caution. I believe we have the right strategy, the right focus and the right team. We will continue to focus on sustainable profitability, growth, and shareholder value."

The call will be webcast live with audio at http://www.smics.com/eng/investors/ir_presentations.php, or at http://www.media-server.com/m/p/d532va5f.

An archived version of the webcast, along with an electronic copy of this news release will be available on the SMIC website for a period of 12 months following the webcast.

About SMIC

Semiconductor Manufacturing International Corporation ("SMIC"; NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in mainland China, providing integrated circuit (IC) foundry and technology services at 0.35-micron to 40-nanometer. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) and a 200mm mega-fab in Shanghai, a 300mm mega-fab in Beijing, a 200mm fab in Tianjin, and a 200mm fab project under development in Shenzhen. SMIC also has customer service and marketing offices in the U.S., Europe, Japan, and Taiwan, and a representative office in Hong Kong. In addition, SMIC manages and operates a 300mm wafer fab in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation.

For more information, please visit www.smics.com.

Safe Harbor Statements

(Under the Private Securities Litigation Reform Act of 1995)

This press release contains, in addition to historical information, "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, including statements under "First Quarter 2013 Guidance", and the statement regarding our expectation that both HKMG and PolySiON processes will be ready by the fourth quarter of 2013 are based on SMIC's current assumptions, expectations and projections about future events. SMIC uses words like "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements involve significant risks, both known and unknown, uncertainties and other factors that may cause SMIC's actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements including, among others, risks associated with the global economic slowdown, orders or judgments from pending litigation and financial stability in end markets.

Investors should consider the information contained in SMIC's filings with the U.S. Securities and Exchange Commission (SEC), including its annual report on 20-F filed with the SEC on April 27, 2012, especially the consolidated financial statements, and such other documents that SMIC may file with the SEC or The Hong Kong Stock Exchange Limited ("SEHK") from time to time, including current reports on Form 6-K. Other unknown or unpredictable factors also could have material adverse effects on SMIC's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Except as may be required by law, SMIC undertakes no obligation and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise.

For the full release, including all financial tables, please visit the following link:

http://www.prnasia.com/sa/attachment/2013/02/20130206200949951384.pdf

Contact: 

Investor Relations
+86-21-3861-0000 ext. 12804
[email protected]

SOURCE Semiconductor Manufacturing International Corporation

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