UMC Reports Fourth Quarter 2010 Results
2010 full-year EPS of NT$1.91; gross margin hits 30%
TAIPEI, Jan. 26, 2011 /PRNewswire-Asia/ -- United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the fourth quarter of 2010.
Overview of Fourth Quarter 2010(1): |
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Revenue: NT$31.32 billion (US$1.08 billion) with 4.1% QoQ decrease |
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Gross margin: 32.1%; Operating margin: 21.1% |
|
Capacity utilization: 94% |
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Net income: NT$6.42 billion (US$220.77 million) |
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Earnings per share: NT$0.52; earnings per ADS: US$0.089 |
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(1) Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with ROC GAAP, which differ in some material respects from generally accepted accounting principles in the United States. They are un-audited, unconsolidated, and represent comparisons among the three-month period ending December 31, 2010, the three-month period ending September 30, 2010, and the equivalent three-month period that ended December 31, 2009. For all 4Q10 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the December 31, 2010 exchange rate of NT$29.08 per U.S. Dollar. |
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Revenue from 4Q10 was NT$31.32 billion, a 4.1% quarter-over-quarter decrease from NT$32.65 billion in 3Q10, and a 12.9% year-over-year increase from NT$27.75 billion in 4Q09. Gross margin was 32.1%, with 21.1% operating margin, NT$6.42 billion net income, and NT$0.52 earnings per ordinary share. In 2010, revenue for the full year was NT$120.43 billion, with NT$23.90 billion net income, and NT$1.91 earnings per share.
Dr. Shih-Wei Sun, CEO of UMC, said, "UMC is dedicated to the customer-driven development of advanced technologies and foundry manufacturing solutions. This commitment has led to considerable success in our efforts to broaden our customer base, optimize product mix, and boost profit capability. 2010 wafer shipments reached a record high of approximately 4.52 million 8-inch equivalent wafers, with revenue hitting another record high of NT$120.43 billion. Full-year operating profit, EPS, and an ROE of 11% also reached their highest levels in recent years. 2010 capital expenditures were US$1.8 billion. With the expansion of high-end capacities, 65nm and below revenue contribution for 4Q alone reached 35%, with 40nm products increasing to 5% of total revenue. Revenue contribution from 65nm and below products for the full year grew an impressive 170% as well."
Dr. Sun continued, "After experiencing growth momentum for over a year and a half at UMC, we anticipate revenue for the first quarter of 2011 to decline slightly due to appreciation of NT dollar, certain customers undergoing product and technology-node transitions, and other seasonal adjustments. UMC is optimistic about demand for high-end chips this year, with revenue contribution from 40nm growing quarterly in 2011 to become a main revenue driver. We will also begin 28nm customer-product pilot around the middle of this year. To satisfy customers' technology and capacity requirements while ensuring both stable growth and long-term ROE, we plan to invest about the same amount of CAPEX as last year. Looking ahead in 2011, UMC will build upon its solid foundation and continue advancing its technologies and service quality to provide its global customers the most appropriate foundry solutions."
Summary of Operating Results
Operating Results |
||||||
(Amount: NT$ million) |
4Q10 |
3Q10 |
QoQ % |
4Q09 |
YoY % |
|
Revenue |
31,319 |
32,652 |
(4.1) |
27,746 |
12.9 |
|
Gross Profit |
10,052 |
10,648 |
(5.6) |
7,179 |
40.0 |
|
Operating Expenses |
(3,452) |
(3,461) |
(0.3) |
(3,435) |
0.5 |
|
Operating Income |
6,600 |
7,187 |
(8.2) |
3,744 |
76.3 |
|
Non-Operating Income |
426 |
1,937 |
(78.0) |
700 |
(39.1) |
|
Net Income |
6,424 |
8,720 |
(26.3) |
4,396 |
46.1 |
|
EPS (NT$ per share) |
0.52 |
0.70 |
0.35 |
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(US$ per ADS) |
0.089 |
0.120 |
0.060 |
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Revenue decreased 4.1% QoQ to NT$31.32 billion from NT$32.65 billion in 3Q10, and increased 12.9% YoY from NT$27.75 billion in 4Q09. Gross profit was NT$10.05 billion, or 32.1% of revenue, compared to NT$10.65 billion, or 32.6% of 3Q10 revenue. Operating income for the quarter was NT$6.60 billion, or 21.1 % of revenue, compared to NT$7.19 billion, or 22.0% of 3Q10 revenue. The decrease in revenue was mainly due to the appreciation of the NT dollar, as guided. Net income in 4Q10 was NT$6.42 billion, compared to NT$8.72 billion in 3Q10.
Earnings per ordinary share for the quarter were NT$0.52. Earnings per ADS (2) were US$0.089. The basic weighted average number of outstanding shares in 4Q10 was 12,450,619,954, compared with 12,449,924,578 shares in 3Q10 and 12,686,971,252 shares in 4Q09. The diluted weighted average number of outstanding shares was 12,576,463,301 in 4Q10, compared with 12,569,431,682 shares in 3Q10 and 12,802,575,731 shares in 4Q09. The fully diluted share count on December 31, 2010 was approximately 13,706,788,000. On December 31, 2010, UMC held 458 million treasury shares acquired from the 13th and 14th share buy-back programs.
(2) One ADS represents five Taiwan-listed ordinary shares.
Detailed Financials Section
Revenue impact from the NT dollar appreciation in Q4 was 3.9%. The decrease in revenue was partially offset by lower depreciation within COGS of NT$5.88 billion, allowing the company to maintain a relatively flat gross margin. The total R&D expense was 7.1% of revenue in 4Q10.
COGS & Expenses |
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(Amount: NT$ million) |
4Q10 |
3Q10 |
QoQ % |
4Q09 |
YoY % |
|
Revenue |
31,319 |
32,652 |
(4.1) |
27,746 |
12.9 |
|
COGS |
(21,267) |
(22,004) |
(3.3) |
(20,567) |
3.4 |
|
Depreciation |
(5,879) |
(6,561) |
(10.4) |
(7,155) |
(17.8) |
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Other Mfg. Costs |
(15,388) |
(15,443) |
(0.4) |
(13,412) |
14.7 |
|
Gross Profit |
10,052 |
10,648 |
(5.6) |
7,179 |
40.0 |
|
Gross Margin (%) |
32.1% |
32.6% |
25.9% |
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Total Operating Exp. |
(3,452) |
(3,461) |
(0.3) |
(3,435) |
0.5 |
|
G&A |
(732) |
(692) |
5.8 |
(644) |
13.7 |
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Sales & Marketing |
(486) |
(567) |
(14.3) |
(654) |
(25.7) |
|
R&D |
(2,234) |
(2,202) |
1.5 |
(2,137) |
4.5 |
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Operating Income |
6,600 |
7,187 |
(8.2) |
3,744 |
76.3 |
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Net non-operating income during 4Q10 decreased QoQ to NT$426 million, mainly due to the decrease in cash dividends that UMC received in 3Q10. The negative net investment income was due to decreased valuation of ProMos shares.
Non-Operating Income (Expenses) |
||||
(Amount: NT$ million) |
4Q10 |
3Q10 |
4Q09 |
|
Net Non-Operating Income |
426 |
1,937 |
700 |
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Net Interest Income |
28 |
30 |
22 |
|
Net Investment Income (Loss) |
(147) |
1,778 |
923 |
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Gain on Disposal of Investment |
432 |
460 |
162 |
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Exchange Gain (Loss) |
34 |
(111) |
(9) |
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Other Gain (Loss) |
79 |
(220) |
(398) |
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Net cash outflow was NT$6.00 billion in 4Q10. Operating cash inflow was NT$15.31 billion. The rise in investing cash outflow primarily reflects the cash-based CAPEX in 4Q10 of NT$20.03 billion. The NT$907 million of financing cash flow was primarily from the redemption of treasury shares issued to employees from the company's 13th share buyback program. Free cash flow (3) for 4Q10 was negative NT$4.72 billion.
(3) Free cash flow = Operating cash flow – Capital expenditures
Cash Flow Summary |
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(Amount: NT$ million) |
For the 3-Month Period Ended Dec. 31, 2010 |
For the 3-Month Period Ended Sep. 30, 2010 |
|
Cash Flow from Operations |
15,312 |
15,954 |
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Net Income |
6,424 |
8,720 |
|
Depreciation & Amortization |
6,977 |
7,404 |
|
Changes in Working Capital |
1,990 |
666 |
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Other |
(79) |
(836) |
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Cash Flow from Investing |
(22,012) |
(18,171) |
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Capital Expenditures |
(20,034) |
(19,368) |
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Other |
(1,978) |
1,197 |
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Cash Flow from Financing |
907 |
(4,331) |
|
Short-Term Loans |
198 |
1,901 |
|
Cash Dividend |
- |
(6,233) |
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Transfer of treasury stock |
510 |
- |
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Other |
199 |
1 |
|
Effect of Exchange Rate |
(203) |
(27) |
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Net Cash Flow |
(5,996) |
(6,575) |
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Cash and cash equivalents decreased to NT$32.93 billion. During 4Q10, inventory turnover increased to 48 days due to higher WIP level from the advanced processes at 300mm fabs.
Current Assets |
||||
(Amount: NT$ billion) |
4Q10 |
3Q10 |
4Q09 |
|
Cash & Cash Equivalents |
32.93 |
38.93 |
52.79 |
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Notes & Accounts Receivable |
16.50 |
18.55 |
17.06 |
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Days Sales Outstanding |
51 |
52 |
54 |
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Inventories |
11.20 |
10.67 |
8.78 |
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Avg. Inventory Turnover |
48 |
44 |
39 |
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Total Current Assets |
70.54 |
78.41 |
88.29 |
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Current liabilities decreased to NT$39.64 billion. Total liabilities decreased to NT$44.02 billion in 4Q10. UMC's debt to equity ratio remained at 20%.
Liabilities |
||||
(Amount: NT$ billion) |
4Q10 |
3Q10 |
4Q09 |
|
Total Current Liabilities |
39.64 |
41.90 |
34.03 |
|
Accounts Payable |
5.76 |
6.16 |
5.05 |
|
Short-Term Credit / Bonds |
7.98 |
8.21 |
12.80 |
|
Payable on Equipment |
11.26 |
14.26 |
5.49 |
|
Other |
14.64 |
13.27 |
10.69 |
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Long-Term Liabilities |
0.90 |
0.81 |
0.77 |
|
Total Liabilities |
44.02 |
46.20 |
38.29 |
|
Debt to Equity |
20% |
21% |
18% |
|
Analysis of Revenue(4)
(4) Revenue in this section represents wafer sales. |
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The percentage of revenue from North America and Europe increased to 53% and 16%, respectively, mainly due to increased demand for advanced technology nodes from those two regions.
Revenue Breakdown by Region |
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Region |
4Q10 |
3Q10 |
2Q10 |
1Q10 |
4Q09 |
|
North America |
53% |
46% |
46% |
47% |
51% |
|
Asia Pacific |
30% |
40% |
42% |
42% |
40% |
|
Europe |
16% |
13% |
11% |
10% |
8% |
|
Japan |
1% |
1% |
1% |
1% |
1% |
|
Revenue from 65nm and below increased to 35% of total revenue, with 40nm accounting for 5% of UMC's Q4 revenue contribution as strong demand for advanced process nodes continues.
Revenue Breakdown by Geometry |
||||||
Geometry |
4Q10 |
3Q10 |
2Q10 |
1Q10 |
4Q09 |
|
40nm and below |
5% |
4% |
3% |
1% |
0% |
|
40nm<x<=65nm |
30% |
26% |
21% |
17% |
17% |
|
65nm<x<=90nm |
16% |
14% |
18% |
22% |
25% |
|
90nm<x<=0.13um |
20% |
24% |
22% |
25% |
23% |
|
0.13um<x<=0.18um |
14% |
15% |
18% |
18% |
19% |
|
0.18um<x<=0.35um |
10% |
12% |
13% |
11% |
11% |
|
0.5um and above |
5% |
5% |
5% |
6% |
5% |
|
The percentage of revenue from IDM customers increased to 27% in 4Q10 due to increased IDM outsourcing.
Revenue Breakdown by Customer Type |
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Customer Type |
4Q10 |
3Q10 |
2Q10 |
1Q10 |
4Q09 |
|
Fabless |
73% |
78% |
81% |
81% |
80% |
|
IDM |
27% |
22% |
19% |
19% |
20% |
|
The communication sector outpaced the consumer and computer segments in Q4. As such, revenue from the communication sector grew to 56% of total revenue in 4Q10.
Revenue Breakdown by Application(5) |
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Application |
4Q10 |
3Q10 |
2Q10 |
1Q10 |
4Q09 |
|
Computer |
11% |
12% |
13% |
13% |
11% |
|
Communication |
56% |
53% |
54% |
59% |
62% |
|
Consumer |
30% |
32% |
31% |
26% |
25% |
|
Memory |
1% |
1% |
1% |
1% |
0% |
|
Others |
2% |
2% |
1% |
1% |
2% |
|
(5) 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. Memory consists of DRAM, SRAM, Flash, ROM, and EEPROM.
Blended Average Selling Price Trend
The blended average selling price (ASP) increased in US dollar terms during 4Q10, mainly due to product mix shifting to more advanced technology.
(To view ASP trend, visit http://www.umc.com/english/investors/4Q10_ASP_trend.asp )
Shipment and Utilization Rate (6)
(6) Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
Wafer shipments decreased 5.8% sequentially to 1,132K in 4Q10, compared to 1,202K 8-inch equivalent wafers shipped in 3Q10. The overall utilization rate for the quarter was 94%.
Wafer Shipments |
||||||
4Q10 |
3Q10 |
2Q10 |
1Q10 |
4Q09 |
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Wafer Shipments |
1,132 |
1,202 |
1,156 |
1,033 |
990 |
|
Quarterly Capacity Utilization Rate |
||||||
4Q10 |
3Q10 |
2Q10 |
1Q10 |
4Q09 |
||
Utilization Rate |
94% |
>99% |
100% |
88% |
86% |
|
Total Capacity |
1,234 |
1,220 |
1,183 |
1,154 |
1,132 |
|
Capacity (7)
(7) 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.
Capacity during the fourth quarter was 1,234K 8-inch equivalent wafers. The increase in total capacity is mainly due to expansion of 65/55nm at Fab 12i. The estimated installed capacity in 1Q11 will increase to 1,259K 8-inch equivalent wafers mainly due to expansion at both Fab 12A and Fab 12i. Some 8-inch fabs' capacity will be lower due to fewer working days in February. The 4% capacity increase in 2010 mainly reflects the advanced capacity conversion from mature nodes and the company's backend loaded capacity execution last year.
Annual Capacity in thousands of 8-inch wafer equivalents |
|||||||
FAB |
Geometry |
2010 |
2009 |
2008 |
2007 |
||
Fab6A |
6" |
3.5 – 0.45 |
331 |
328 |
328 |
328 |
|
Fab8A |
8" |
0.5 – 0.25 |
816 |
816 |
816 |
816 |
|
Fab8C |
8" |
0.35 – 0.11 |
366 |
405 |
417 |
400 |
|
Fab8D |
8" |
0.13 – 0.09 |
314 |
267 |
257 |
260 |
|
Fab8E |
8" |
0.5 – 0.18 |
410 |
408 |
408 |
408 |
|
Fab8F |
8" |
0.18 – 0.11 |
388 |
381 |
372 |
372 |
|
Fab8S (8) |
8" |
0.18 – 0.11 |
304 |
300 |
291 |
276 |
|
Fab12A |
12" |
0.18 – 0.040 |
841 |
866 |
876 |
847 |
|
Fab12i (9) |
12" |
0.13 – 0.065 |
1,021 |
815 |
742 |
601 |
|
Total (10) |
4,791 |
4,586 |
4,507 |
4,308 |
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YoY Growth Rate |
4% |
2% |
5% |
7% |
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Quarterly Capacity in thousands of 8-inch wafer equivalents |
|||||
FAB |
1Q11E |
4Q10 |
3Q10 |
2Q10 |
|
Fab6A |
75 |
83 |
83 |
83 |
|
Fab8A |
201 |
204 |
204 |
204 |
|
Fab8C |
89 |
90 |
90 |
90 |
|
Fab8D |
85 |
84 |
81 |
78 |
|
Fab8E |
114 |
104 |
102 |
102 |
|
Fab8F |
96 |
98 |
98 |
96 |
|
Fab8S |
75 |
77 |
77 |
75 |
|
Fab12A |
234 |
213 |
210 |
209 |
|
Fab12i |
291 |
282 |
275 |
245 |
|
Total (10) |
1,259 |
1,234 |
1,220 |
1,183 |
|
(8) Former fab of SiSMC, which was acquired from Silicon Integrated Systems in July 2004.
(9) Former fab of UMCi, a UMC wholly-owned subsidiary since December 2004 that was merged into UMC in April 2005
(10) One 6-inch wafer is converted into 0.5625(6 sq /8 sq) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25(12 sq / 8 sq) 8-inch equivalent wafers.
CAPEX
The capital expenditure budget for 2011 will be approximately US$1.8 billion. By the end of the fourth quarter 2010, UMC's year-to-date CAPEX totaled US$1.8 billion.
UMC Capital Expenditure by Year - in US$ billion |
|||||||
Year |
2010 |
2009 |
2008 |
2007 |
2006 |
2005 |
|
CAPEX |
$ 1.8 |
$ 0.55 |
$ 0.35 |
$ 0.9 |
$ 1.0 |
$0.7(11) |
|
2011 CAPEX Plan |
||||
8" |
12" |
Total |
||
UMC |
13% |
87% |
Approximately US$1.8billion |
|
(11) 2005 CAPEX contained UMC 2005 full-year CAPEX and UMCi CAPEX during 1Q05
Brief Summary of Full Year 2010 Results
- Revenue increased 35.9% YoY to NT$120.43 billion, from NT$88.62 billion in 2009
- Gross margin was 29.9%, compared to 17.9% in 2009
- Operating margin was 18.8%, compared to 3.8% in 2009
- Net income was NT$23.90 billion for 2010
- EPS was NT$1.91, or EPADS was US$0.328 for 2010, compared to EPS of NT$0.31 or EPADS of US$0.053 for 2009
- The percentage of revenue from 65nm and below technologies increased from 13% in 2009 to 27% in 2010.
Operating Results |
||||
(Amount: NT$ million) |
2010 |
2009 |
YoY % |
|
Revenue |
120,431 |
88,618 |
35.9 |
|
Gross Profit |
36,064 |
15,880 |
127.1 |
|
Operating Expenses |
(13,436) |
(12,548) |
7.1 |
|
Operating Income |
22,628 |
3,332 |
579.1 |
|
Non-Operating Income |
2,759 |
1,136 |
142.9 |
|
Income Tax Expenses |
(1,488) |
(594) |
150.5 |
|
Net Income |
23,899 |
3,874 |
516.9 |
|
EPS (NT$ per share) |
1.91 |
0.31 |
||
(US$ per ADS) |
0.328 |
0.053 |
||
Annual Sales Breakdown in Revenue |
|||
Region |
2010 |
2009 |
|
North America |
48% |
50% |
|
Asia Pacific |
38% |
40% |
|
Europe |
13% |
9% |
|
Japan |
1% |
1% |
|
Technology |
2010 |
2009 |
|
65nm and below |
27% |
13% |
|
65nm<x<=90nm |
17% |
26% |
|
90nm<x<=0.13um |
23% |
21% |
|
0.13um<x<=0.18um |
16% |
21% |
|
0.18um<x<=0.35um |
12% |
14% |
|
0.5um and above |
5% |
5% |
|
Customer Type |
2010 |
2009 |
|
Fabless |
78% |
79% |
|
IDM |
22% |
21% |
|
Application |
2010 |
2009 |
|
Computer |
12% |
14% |
|
Communication |
55% |
61% |
|
Consumer |
30% |
23% |
|
Memory |
1% |
1% |
|
Others |
2% |
1% |
|
Recent Developments / Announcements
Jan. 19, 2011 |
UMC Produces Customer CMOS-MEMS Sensor Products |
|
Dec. 08, 2010 |
UMC Wins Global Views Magazine's Second Annual Taiwan Environmental Heroes Award |
|
Nov. 18, 2010 |
UMC Board of Directors Announces Termination of He Jian Merger Agreement |
|
Nov. 04, 2010 |
UMC Fab 12A Wins 19th Annual ROC Enterprise Environmental Protection Award |
|
Oct. 27, 2010 |
UMC 3Q 2010 Financial Results |
|
Please visit UMC's website for further details regarding the above announcements.
First Quarter of 2011 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer shipments: low single-digit percentage decline
- Wafer ASP in US dollars: low to mid single-digit percentage decline
- Capacity utilization: approximately 90%
- Gross margin: over 25%
- Segments: consumer will be relatively weaker than the computer and communication segments
- 2011 CAPEX budget: approximately US$ 1.8 Billion
Conference Call / Webcast Announcement
Wednesday, January 26, 2011
Time: 9:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)
Dial-in numbers and Access Codes: |
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USA Toll Free: |
1 866 519 4004 |
|
UK Toll Free: |
0808 234 6646 |
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Singapore and Other Areas: |
+65 6723 9381 |
|
Access Code: |
UMC |
|
A live webcast and replay of the 4Q10 results announcement will be available at www.umc.com under the "Investor Relations \ Investor Events" section.
About UMC
UMC (NYSE: UMC, TWSE: 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; Fab12A in Taiwan and Singapore-based Fab12i are both in volume production for a variety of customer products. The company employs approximately 13,000 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 |
||||
Condensed Unconsolidated Balance Sheet |
||||
As of December 31, 2010 |
||||
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
||||
December 31, 2010 |
||||
|
US$ |
NT$ |
% |
|
ASSETS |
||||
Current Assets |
||||
Cash and Cash Equivalents |
1,133 |
32,935 |
12.5% |
|
Financial Assets at Fair Value through Profit or Loss, current |
39 |
1,140 |
0.4% |
|
Available-for-Sale Financial Assets, current |
242 |
7,045 |
2.7% |
|
Notes & Accounts Receivable, net |
567 |
16,500 |
6.3% |
|
Inventories, net |
385 |
11,198 |
4.3% |
|
Other Current Assets |
59 |
1,717 |
0.6% |
|
Total Current Assets |
2,425 |
70,535 |
26.8% |
|
Non-Current Assets |
||||
Funds and Investments |
2,353 |
68,415 |
26.0% |
|
Property, Plant and Equipment, net |
4,070 |
118,352 |
44.9% |
|
Other Assets |
208 |
6,059 |
2.3% |
|
Total Non-Current Assets |
6,631 |
192,826 |
73.2% |
|
TOTAL ASSETS |
9,056 |
263,361 |
100.0% |
|
LIABILITIES |
||||
Current Liabilities |
||||
Short-term Loans |
90 |
2,622 |
1.0% |
|
Financial Liabilities at Fair Value through Profit or Loss, current |
78 |
2,255 |
0.9% |
|
Payables |
994 |
28,909 |
11.0% |
|
Current Portion of Long-term Liabilities |
184 |
5,361 |
2.0% |
|
Other Current Liabilities |
17 |
493 |
0.2% |
|
Total Current Liabilities |
1,363 |
39,640 |
15.1% |
|
Non-Current Liabilities |
||||
Long-term Loans |
31 |
901 |
0.3% |
|
Other Liabilities |
120 |
3,483 |
1.3% |
|
Total Non-Current Liabilities |
151 |
4,384 |
1.6% |
|
TOTAL LIABILITIES |
1,514 |
44,024 |
16.7% |
|
STOCKHOLDERS' EQUITY |
||||
Capital Stock |
4,466 |
129,879 |
49.3% |
|
Additional Paid-in Capital |
1,549 |
45,049 |
17.1% |
|
Retained Earnings, Unrealized Gain or Loss on Financial |
1,741 |
50,632 |
19.3% |
|
Treasury Stock |
(214) |
(6,223) |
(2.4%) |
|
TOTAL STOCKHOLDERS' EQUITY |
7,542 |
219,337 |
83.3% |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
9,056 |
263,361 |
100.0% |
|
|
|
|
|
|
Note：New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2010 exchange rate of NT $29.08 per U.S. Dollar. |
||||
All figures are in ROC GAAP. |
||||
UNITED MICROELECTRONICS CORPORATION |
|||||||||||
Condensed Unconsolidated Income Statement |
|||||||||||
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
|||||||||||
Except Per Share and Per ADS Data |
|||||||||||
|
Year over Year Comparison |
Quarter over Quarter Comparison |
|||||||||
|
Three-Month Period Ended |
|
Three-Month Period Ended |
|
|||||||
|
December 31, 2010 |
December 31, 2009 |
% |
December 31, 2010 |
September 30, 2010 |
% |
|||||
|
US$ |
NT$ |
US$ |
NT$ |
Chg. |
US$ |
NT$ |
US$ |
NT$ |
Chg. |
|
Net Sales |
1,077 |
31,319 |
954 |
27,746 |
12.9% |
1,077 |
31,319 |
1,123 |
32,652 |
(4.1%) |
|
Cost of Goods Sold |
(731) |
(21,267) |
(707) |
(20,567) |
3.4% |
(731) |
(21,267) |
(757) |
(22,004) |
(3.3%) |
|
Net Gross Profit |
346 |
10,052 |
247 |
7,179 |
40.0% |
346 |
10,052 |
366 |
10,648 |
(5.6%) |
|
|
32.1% |
32.1% |
25.9% |
25.9% |
|
32.1% |
32.1% |
32.6% |
32.6% |
|
|
Operating Expenses |
|||||||||||
- Sales & Marketing |
(17) |
(486) |
(22) |
(654) |
(25.7%) |
(17) |
(486) |
(19) |
(567) |
(14.3%) |
|
- General & Administrative |
(25) |
(732) |
(22) |
(644) |
13.7% |
(25) |
(732) |
(24) |
(692) |
5.8% |
|
- Research & Development |
(77) |
(2,234) |
(74) |
(2,137) |
4.5% |
(77) |
(2,234) |
(76) |
(2,202) |
1.5% |
|
|
(119) |
(3,452) |
(118) |
(3,435) |
0.5% |
(119) |
(3,452) |
(119) |
(3,461) |
(0.3%) |
|
Operating Income |
227 |
6,600 |
129 |
3,744 |
76.3% |
227 |
6,600 |
247 |
7,187 |
(8.2%) |
|
|
21.1% |
21.1% |
13.5% |
13.5% |
|
21.1% |
21.1% |
22.0% |
22.0% |
|
|
Net Non-Operating Income (Expenses) |
15 |
426 |
24 |
700 |
(39.1%) |
15 |
426 |
67 |
1,937 |
(78.0%) |
|
Income from Continuing Operations before |
242 |
7,026 |
153 |
4,444 |
58.1% |
242 |
7,026 |
314 |
9,124 |
(23.0%) |
|
|
22.4% |
22.4% |
16.0% |
16.0% |
|
22.4% |
22.4% |
27.9% |
27.9% |
|
|
Income Tax Expense |
(21) |
(602) |
(2) |
(48) |
100.0% |
(21) |
(602) |
(14) |
(404) |
49.0% |
|
Net Income |
221 |
6,424 |
151 |
4,396 |
46.1% |
221 |
6,424 |
300 |
8,720 |
(26.3%) |
|
|
20.5% |
20.5% |
15.8% |
15.8% |
|
20.5% |
20.5% |
26.7% |
26.7% |
|
|
Earnings per Share |
0.018 |
0.52 |
0.012 |
0.35 |
|
0.018 |
0.52 |
0.024 |
0.70 |
|
|
Earnings per ADS (2) |
0.089 |
2.60 |
0.060 |
1.75 |
|
0.089 |
2.60 |
0.120 |
3.50 |
|
|
Weighted Average Number of Shares |
|||||||||||
Outstanding (in millions) |
12,451 |
12,687 |
|
12,451 |
12,450 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Notes: |
|||||||||||
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2010 exchange rate of NT $29.08 per U.S. Dollar. |
|||||||||||
All figures are in ROC GAAP. |
|||||||||||
(2) 1 ADS equals 5 common shares. |
|||||||||||
UNITED MICROELECTRONICS CORPORATION |
|||||||
Condensed Unconsolidated Income Statement |
|||||||
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
|||||||
Except Per Share and Per ADS Data |
|||||||
For the Three-Month Period Ended |
For the Year Ended |
||||||
December 31, 2010 |
December 31, 2010 |
||||||
|
US$ |
NT$ |
% |
US$ |
NT$ |
% |
|
Net Sales |
1,077 |
31,319 |
100.0% |
4,141 |
120,431 |
100.0% |
|
Cost of Goods Sold |
(731) |
(21,267) |
(67.9%) |
(2,901) |
(84,367) |
(70.1%) |
|
Net Gross Profit |
346 |
10,052 |
32.1% |
1,240 |
36,064 |
29.9% |
|
Operating Expenses |
|||||||
- Sales & Marketing |
(17) |
(486) |
(1.6%) |
(74) |
(2,152) |
(1.8%) |
|
- General & Administrative |
(25) |
(732) |
(2.3%) |
(93) |
(2,705) |
(2.2%) |
|
- Research & Development |
(77) |
(2,234) |
(7.1%) |
(295) |
(8,579) |
(7.1%) |
|
|
(119) |
(3,452) |
(11.0%) |
(462) |
(13,436) |
(11.1%) |
|
Operating Income |
227 |
6,600 |
21.1% |
778 |
22,628 |
18.8% |
|
Net Non-Operating Income (Expenses) |
15 |
426 |
1.3% |
93 |
2,690 |
2.2% |
|
Income from Continuing Operations before |
242 |
7,026 |
22.4% |
871 |
25,318 |
21.0% |
|
Income Tax Expense |
(21) |
(602) |
(1.9%) |
(51) |
(1,488) |
(1.2%) |
|
Income from Continuing Operations |
221 |
6,424 |
20.5% |
820 |
23,830 |
19.8% |
|
Extraordinary Gain |
- |
- |
- |
2 |
69 |
0.0% |
|
Net Income |
221 |
6,424 |
20.5% |
822 |
23,899 |
19.8% |
|
Earnings per Share |
0.018 |
0.52 |
|
0.066 |
1.91 |
|
|
Earnings per ADS (2) |
0.089 |
2.60 |
|
0.328 |
9.55 |
|
|
Weighted Average Number of Shares |
|
12,451 |
|
|
12,496 |
|
|
|
|
|
|
|
|
|
|
Notes: |
|||||||
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2010 exchange rate of NT $29.08 per U.S. Dollar. |
|||||||
All figures are in ROC GAAP. |
|||||||
(2) 1 ADS equals 5 common shares. |
|||||||
UNITED MICROELECTRONICS CORPORATION |
|||
Condensed Unconsolidated Statement of Cash Flows |
|||
For The Year Ended December 31, 2010 |
|||
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$) |
|||
|
USD |
NTD |
|
Cash flows from operating activities : |
|||
Net Income |
822 |
23,899 |
|
Extraordinary gain |
(3) |
(82) |
|
Depreciation & Amortization |
1,038 |
30,187 |
|
Loss on decline in market value and obsolescence of inventories |
1 |
29 |
|
Cash dividends received under the equity method |
10 |
299 |
|
Investment gain accounted for under the equity method |
(20) |
(582) |
|
Loss on valuation of financial assets and liabilities |
31 |
891 |
|
Gain on disposal of investments |
(39) |
(1,126) |
|
Gain on disposal of property, plant and equipment |
(2) |
(44) |
|
Exchange gain on financial assets and liabilities |
(10) |
(314) |
|
Exchange gain on long-term liabilities |
(17) |
(499) |
|
Amortization of bond discounts |
8 |
227 |
|
Amortization of deferred income |
(5) |
(146) |
|
Stock-based payment |
22 |
645 |
|
Changes in assets, liabilities and others |
68 |
1,979 |
|
Net cash provided by operating activities |
1,904 |
55,363 |
|
Cash flows from investing activities : |
|||
Acquisition of Trading financial assets |
(3) |
(92) |
|
Proceeds from disposal of available-for-sales financial assets |
85 |
2,469 |
|
Acquisition of financial assets measured at cost |
(1) |
(18) |
|
Proceed from sale of financial assets measured at cost |
3 |
84 |
|
Acquisition of long-term investments accounted for under the equity method |
(154) |
(4,482) |
|
Proceeds from disposal of long-term investments accounted for the equity method |
1 |
38 |
|
Proceeds from liquidation of long-term investments |
0 |
14 |
|
Acquisition of property, plant and equipment |
(2,004) |
(58,275) |
|
Proceeds from disposal of property, plant and equipment |
2 |
68 |
|
Proceeds from disposal of non-current assets held for sale |
14 |
401 |
|
Increase in deferred charges |
(12) |
(365) |
|
Increase in other assets - others |
(3) |
(109) |
|
Net cash used in investing activities |
(2,072) |
(60,267) |
|
Cash flows from financing activities : |
|||
Increase in short-term loans |
97 |
2,820 |
|
Proceeds from long-term loans |
17 |
500 |
|
Repayments of long-term loans |
(1) |
(33) |
|
Redemption of bonds |
(258) |
(7,500) |
|
Cash dividends |
(214) |
(6,233) |
|
Exercise of employee stock options |
0 |
3 |
|
Purchase of treasury stock |
(167) |
(4,844) |
|
Treasury stock sold to employees |
18 |
510 |
|
Proceeds from disposal of treasury stock |
1 |
27 |
|
Increase in deposits-in |
0 |
11 |
|
Net cash used by financing activities |
(507) |
(14,739) |
|
Effect of exchange rate changes on cash and cash equivalents |
(8) |
(214) |
|
Net decrease in cash and cash equivalents |
(683) |
(19,857) |
|
Cash and cash equivalents at beginning of period |
1,816 |
52,792 |
|
Cash and cash equivalents at end of period |
1,133 |
32,935 |
|
|
|
|
|
Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2010 exchange rate of NT $29.08 per U.S. Dollar. |
|||
All figures are in ROC GAAP. |
|||
Contacts: |
|
Richard Yu |
|
UMC, Investor Relations |
|
Tel. + 886-2-2658-9168, ext. 16951 |
|
Email:[email protected] |
|
SOURCE United Microelectronics Corporation
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