UMC Reports Third Quarter 2010 Results
Year-to-date EPS of NT$1.40; double-digit advanced process revenue growth to continue
TAIPEI, Taiwan, Oct. 27 /PRNewswire-Asia/--
Third Quarter 2010 Highlights(1):
-- Revenue increase: 9.8% QoQ to NT$32.65 billion (US$1.05 billion)
-- Gross margin: 32.6%; operating margin: 22.0%
-- Capacity utilization: >99%
-- Net income: NT$8.72 billion (US$279.13 million)
-- Earnings per share: NT$0.70; earnings per ADS: US$0.112
(1) Unless otherwise stated, all financial figures discussed in this
announcement are prepared in accordance with ROC GAAP, which differ in
some material respects from generally accepted accounting principles
in the United States. They are un-audited, unconsolidated, and
represent comparisons among the three-month period ending September 30,
2010, the three-month period ending June 30, 2010, and the equivalent
three-month period that ended September 30, 2009. For all 3Q10 results,
New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars
at the September 30, 2010 exchange rate of NT$31.24 per U.S. Dollar.
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the third quarter of 2010.
Revenue increased 9.8% quarter-over-quarter to NT$32.65 billion, from NT$29.75 billion in 2Q10, and increased 19.1% year-over-year, from NT$27.41 billion in 3Q09. Gross margin was 32.6%, operating margin was 22.0%, net income was NT$8.72 billion, and earnings per ordinary share were NT$0.70.
Dr. Shih-Wei Sun, CEO of UMC, said, "UMC's revenue from the first three quarters of this year has already surpassed 2009's full-year revenue. Total earnings per ordinary share for the three quarters were NT$1.40, with full-year earnings for 2010 expected to grow significantly from last year. Robust growth momentum for Q3 continued from the previous six quarters, with capacity utilization remaining full. Shipment volume reached a record of 1,202K 8-inch equivalent wafers. As a result, third quarter revenue exceeded US$1 billion, with revenue and income from foundry operations both reaching 6-year highs. UMC's accelerated advanced capacity expansion and product mix optimization continue to show positive results. Revenue contribution from 65nm and below products has reached 30%, with 40nm growing to 4.2% of revenue. ROE for the quarter reached 16.6%."
Dr. Sun continued, "Looking ahead to Q4, advanced process capacity will remain fully utilized. Product mix optimization will push blended ASP even higher. We do expect that seasonality, NT dollar fluctuations, and other uncertainties may slightly affect revenue, but remain cautiously optimistic about the Q4 foundry market. UMC will continue to closely monitor industry conditions in order to adapt to any changes. According to UMC's initial budget projection for fiscal year 2011, next year's semiconductor industry outlook and customer demand remain quite healthy. UMC's US$1.8 billion CAPEX this year shall significantly boost advanced capacity expansion and 28nm and 20nm R&D, enabling the company to greatly enhance its competitiveness. We will also continue our efforts on ROE and plan to deliver favorable dividend yield to UMC shareholders."
Summary of Operating Results
Operating Results
QoQ % YoY %
(Amount: NT$ million) 3Q10 2Q10 change 3Q09 change
Revenue 32,652 29,745 9.8 27,406 19.1
Gross Profit 10,648 8,805 20.9 7,655 39.1
Operating Expenses (3,461) (3,368) 2.8 (3,446) 0.4
Operating Income 7,187 5,437 32.2 4,209 70.8
Non-Operating Income
(Expenses) 1,937 199 873.4 2,180 (11.1)
Net Income 8,720 5,273 65.4 6,091 43.2
EPS (NT$ per share) 0.70 0.42 -- 0.48 --
(US$ per ADS) 0.112 0.067 -- 0.077 --
Revenue increased 9.8% QoQ to NT$32.65 billion from NT$29.75 billion in 2Q10, and increased 19.1% YoY from NT$27.41 billion in 3Q09. Gross profit was NT$10.65 billion, or 32.6% of revenue, compared to NT$8.81 billion, or 29.6% of 2Q10 revenue. Operating income for the quarter was NT$7.19 billion, or 22.0% of revenue, compared to NT$5.44 billion, or 18.3% of 2Q10 revenue. The increase in revenue was mainly due to improved product mix and increased wafer shipments. Net income in 3Q10 was NT$8.72 billion, compared to NT$5.27 billion in 2Q10.
Earnings per ordinary share for the quarter were NT$0.70. Earnings per ADS(2) were US$0.112. The basic weighted average number of outstanding shares in 3Q10 was 12,449,924,578, compared with 12,449,924,578 shares in 2Q10 and 12,671,692,578 shares in 3Q09. The diluted weighted average number of outstanding shares was 12,569,431,682 in 3Q10, compared with 12,638,413,042 shares in 2Q10 and 12,793,329,223 shares in 3Q09. The fully diluted share count on September 30, 2010 was approximately 13,723,888,000. On September 30, 2010, UMC held 522 million treasury shares acquired from the 13th and 14th share buy-back programs.
(2) One ADS represents five Taiwan-listed ordinary shares.
Detailed Financials Section
COGS & Expenses
QoQ % YoY %
(Amount: NT$ million) 3Q10 2Q10 change 3Q09 change
Revenue 32,652 29,745 9.8 27,406 19.1
COGS (22,004) (20,940) 5.1 (19,751) 11.4
Depreciation (6,561) (6,832) (3.5) (7,529) (12.5)
Other Mfg. Costs (15,443) (14,108) 9.3 (12,222) 26.1
Gross Profit 10,648 8,805 20.9 7,655 39.1
Gross Margin (%) 32.6% 29.6% -- 27.9% --
Total Operating Exp. (3,461) (3,368) 2.8 (3,446) 0.4
G&A (692) (679) 1.9 (593) 16.7
Sales & Marketing (567) (553) 2.5 (629) (9.9)
R&D (2,202) (2,136) 3.1 (2,224) (1.0)
Operating Income 7,187 5,437 32.2 4,209 70.8
Depreciation within COGS decreased to NT$6.56 billion. Total operating expenses increased 2.8% to NT$3.46 billion, mainly due to R&D expense increasing to NT$2.20 billion. The total R&D expense was 6.7% of revenue in 3Q10.
Non-Operating Income (Expenses)
(Amount: NT$ million) 3Q10 2Q10 3Q09
Net Non-Operating Income (Exp.) 1,937 199 2,180
Net Interest Income 30 26 (4)
Net Investment Income (Loss) 1,778 (203) 1,736
Gain on Disposal of Investment 460 157 307
Exchange Gain (Loss) (111) 50 (227)
Other Gain (220) 169 368
Net non-operating income during 3Q10 increased to NT$1.94 billion mainly due to an increase in dividends and interest from equity method investments.
Cash Flow Summary
For the 3-Month For the 3-Month
Period Ended Period Ended
(Amount: NT$ million) Sep. 30, 2010 Jun. 30, 2010
Cash Flow from Operations 15,954 12,089
Net Income 8,720 5,273
Depreciation & Amortization 7,404 7,725
Changes in Working Capital 666 (1,271)
Other (836) 362
Cash Flow from Investing (18,171) (8,529)
Capital Expenditures (19,368) (8,873)
Other 1,197 344
Cash Flow from Financing (4,331) (6,583)
Short-Term Loans 1,901 721
Cash Dividend (6,233) --
Redemption of bonds -- (7,500)
Other 1 196
Effect of Exchange Rate (27) (7)
Net Cash Flow (6,575) (3,030)
Net cash outflow was NT$6.58 billion in 3Q10. Operating cash inflow was NT$15.95 billion. The rise in investing cash outflow primarily reflects the CAPEX in 3Q10 of NT$19.37 billion. The NT$4.33 billion of financing cash outflow was primarily from the payment of cash dividend. Free cash flow(3) for 3Q10 was negative NT$3.41 billion.
(3) Free cash flow = Operating cash flow - Capital expenditures
Current Assets
(Amount: NT$ billion) 3Q10 2Q10 3Q09
Cash & Cash Equivalents 38.93 45.51 44.64
Notes & Accounts Receivable 18.55 18.53 16.23
Days Sales Outstanding 52 54 50
Inventories 10.67 10.30 8.42
Avg. Inventory Turnover 44 44 40
Total Current Assets 78.41 83.84 73.51
Cash and cash equivalents decreased to NT$38.93 billion due increased investment cash outflow. During 3Q10, inventory turnover remained at 44 days.
Liabilities
(Amount: NT$ billion) 3Q10 2Q10 3Q09
Total Current Liabilities 41.90 38.01 22.97
Accounts Payable 6.16 5.66 4.42
Short-Term Credit / Bonds 8.21 6.30 7.52
Cash Dividends Payable -- 6.23 --
Payable on Equipment 14.26 7.57 3.44
Other 13.27 12.25 7.59
Long-Term Liabilities 0.81 0.92 0.88
Total Liabilities 46.20 42.42 27.37
Debt to Equity 21% 21% 13%
Current liabilities increased to NT$41.9 billion, mainly due to the payable on equipment increasing to NT$14.26 billion. Total liabilities increased to NT$46.2 billion in 3Q10. UMC's debt to equity ratio remained at 21%.
Analysis of Revenue(4)
Revenue Breakdown by Region
Region 3Q10 2Q10 1Q10 4Q09 3Q09
North America 46% 46% 47% 51% 49%
Asia Pacific 40% 42% 42% 40% 41%
Europe 13% 11% 10% 8% 9%
Japan 1% 1% 1% 1% 1%
The percentage of revenue from Europe increased to 13%, while the percentage of revenue from the Asia Pacific region decreased slightly to 40%.
Revenue Breakdown by Geometry
Geometry 3Q10 2Q10 1Q10 4Q09 3Q09
40nm and below 4% 3% 1% -- --
40nm < x <=65nm 26% 21% 17% 17% 14%
65nm < x <=90nm 14% 18% 22% 25% 26%
90nm < x <=0.13um 24% 22% 25% 23% 21%
0.13um < x <=0.18um 15% 18% 18% 19% 21%
0.18um < x <=0.35um 12% 13% 11% 11% 13%
0.5um and above 5% 5% 6% 5% 5%
Revenue from 65nm and below increased to 30% of total revenue, with 40nm accounting for 4% of UMC's Q3 revenue contribution as strong demand for advanced process nodes continues.
Revenue Breakdown by Customer Type
Customer Type 3Q10 2Q10 1Q10 4Q09 3Q09
Fabless 78% 81% 81% 80% 79%
IDM 22% 19% 19% 20% 21%
The percentage of revenue from IDM customers increased to 22% in 3Q10 due to increased IDM outsourcing.
Revenue Breakdown by Application (1)
Application 3Q10 2Q10 1Q10 4Q09 3Q09
Computer 12% 13% 13% 11% 17%
Communication 53% 54% 59% 62% 59%
Consumer 32% 31% 26% 25% 23%
Memory 1% 1% 1% 0% 0%
Others 2% 1% 1% 2% 1%
(1) Computer consists of ICs such as HDD controllers, DVD/CD-RW control
ICs, graphic processors, PC chipset, audio codec, keyboard controller,
monitor scaler, USB, I/O chipset. Communication consists of handset
components, broadband, WLAN, bluetooth, switch, 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.
Revenue from the consumer sector grew to 32% of total revenue in 3Q10, positively reflecting UMC's efforts to diversify product mix.
(4) Revenue in this section represents wafer sales.
Blended Average Selling Price Trend
The blended average selling price (ASP) increased in US dollar terms during 3Q10, mainly due to product mix shifting to more advanced technology.
(To view ASP trend, visit
http://www.umc.com/english/investors/3Q10_ASP_trend.asp )
Shipment and Utilization Rate (5)
Wafer Shipments
3Q10 2Q10 1Q10 4Q09 3Q09
Wafer Shipments
(8" K equivalents) 1,202 1,156 1,033 990 1,017
Quarterly Capacity Utilization Rate
3Q10 2Q10 1Q10 4Q09 3Q09
Utilization Rate >99% 100% 88% 86% 89%
Total Capacity
(8" K equivalents) 1,220 1,183 1,154 1,132 1,152
Wafer shipments increased 4.0% sequentially to 1,202K in 3Q10, compared to 1,156K 8-inch equivalent wafers shipped in 2Q10. The overall utilization rate for the quarter was over 99%.
(5) Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
Capacity (6)
Capacity during the third quarter was 1,220K 8-inch equivalent wafers. The increase of total capacity is mainly due to expansion of 65/55nm at Fab 12i. The estimated installed capacity in 4Q10 will increase to 1,234K 8-inch equivalent wafers mainly due to the continuous expansion plan at Fab12i.
Annual Capacity in
thousands of 8-inch wafer equivalents
FAB Geometry (um) 2010E 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 (1) 8" 0.18 - 0.11 304 300 291 276
Fab12A 12" 0.18 - 0.040 841 866 876 847
Fab12i (2) 12" 0.13 - 0.065 1,021 815 742 601
Total (3) 4,791 4,586 4,507 4,308
YoY Growth Rate 4% 2% 5% 7%
Quarterly Capacity in
thousands of 8-inch wafer equivalents
FAB 4Q10E 3Q10 2Q10 1Q10
Fab6A 83 83 83 82
Fab8A 204 204 204 204
Fab8C 90 90 90 96
Fab8D 84 81 78 71
Fab8E 104 102 102 102
Fab8F 98 98 96 96
Fab8S 77 77 75 75
Fab12A 213 210 209 209
Fab12i 282 275 245 219
Total (3) 1,234 1,220 1,183 1,154
(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 since December 2004
that was merged into UMC in April 2005
(3) 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.
(6) 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 2009 2008 2007 2006 2005 2004
CAPEX $0.55 $0.35 $0.9 $1.0 $0.7(1) $1.5
(1) 2005 CAPEX contained UMC 2005 full-year CAPEX and UMCi CAPEX during
1Q05.
2010 CAPEX Plan
8" 12" Total
UMC 12% 88% US$1.8 billion
The capital expenditure budget for 2010 will remain at US$1.8 billion. By the end of the third quarter, UMC's year-to-date CAPEX totaled US$1.2 billion.
Recent Developments / Announcements
Sep. 16, 2010 Dow Jones Sustainability Index Scores UMC First among All
Semiconductor Companies for Total Points in the
Environmental Sector
Sep. 08, 2010 UMC Receives Outstanding Enterprise Innovation Award from
Ministry of Economic Affairs
Aug. 04, 2010 UMC 2Q 2010 Financial Results
Please visit UMC's website for further details regarding the above announcements.
Fourth Quarter of 2010 Outlook & Guidance
Quarter-over-Quarter Guidance:
-- Wafer shipments: mid single-digit percentage decline due to seasonality
-- Wafer ASP: mid single-digit percentage increase
-- Revenue: decline in accordance with NT$ appreciation
-- Capacity utilization: mid to low 90% range
-- Gross margin: low 30% range
-- Segments: computer will be relatively weaker than consumer and
communication
-- Revenue contribution from 65nm and below: approximately 35%
-- 2010 CAPEX budget: US$1.8 billion
Conference Call / Webcast Announcement
Wednesday, October 27, 2010
Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)
Dial-in numbers and Access Codes:
USA Toll Free: 1 866 519 4004
UK Toll Free: 0808 234 6646
Singapore and Other Areas: +65 6723 9381
Access Code: UMC
A live webcast and replay of the 3Q10 results announcement will be available at http://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
Unaudited Condensed Unconsolidated Balance Sheet
As of September 30, 2010
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
September 30, 2010
US$ NT$ %
ASSETS
Current Assets
Cash and Cash Equivalents 1,246 38,931 14.8%
Financial Assets at Fair Value
through Profit or Loss, current 46 1,443 0.6%
Available-for-Sale Financial
Assets, current 216 6,742 2.6%
Notes & Accounts Receivable, net 594 18,553 7.1%
Inventories, net 342 10,670 4.1%
Other Current Assets 66 2,066 0.7%
Total Current Assets 2,510 78,405 29.9%
Non-Current Assets
Funds and Investments 2,146 67,026 25.6%
Property, Plant and Equipment,
net 3,546 110,783 42.2%
Other Assets 193 6,036 2.3%
Total Non-Current Assets 5,885 183,845 70.1%
TOTAL ASSETS 8,395 262,250 100.0%
LIABILITIES
Current Liabilities
Short-term Loans 84 2,632 1.0%
Financial Liabilities at Fair
Value through Profit or Loss,
current 64 1,988 0.8%
Payables 990 30,936 11.8%
Current Portion of Long-term
Liabilities 179 5,580 2.1%
Other Current Liabilities 24 759 0.3%
Total Current Liabilities 1,341 41,895 16.0%
Non-Current Liabilities
Long-term Loans 26 808 0.3%
Other Liabilities 112 3,497 1.3%
Total Non-Current Liabilities 138 4,305 1.6%
TOTAL LIABILITIES 1,479 46,200 17.6%
STOCKHOLDERS' EQUITY
Capital Stock 4,157 129,879 49.5%
Additional Paid-in Capital 1,436 44,873 17.1%
Retained Earnings, Unrealized Gain
or Loss on Financial
Instruments and Cumulative
Translation Adjustment 1,539 48,032 18.4%
Treasury Stock (216) (6,734) (2.6%)
TOTAL STOCKHOLDERS' EQUITY 6,916 216,050 82.4%
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 8,395 262,250 100.0%
Note New Taiwan Dollars have been translated into U.S. Dollars at the
September 30, 2010 exchange rate of NT $31.24 per U.S. Dollar.
All figures are in ROC GAAP.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison
Three-Month Period Ended
September 30, September 30,
2010 2009 %
US$ NT$ US$ NT$ Chg.
Net Sales 1,045 32,652 877 27,406 19.1%
Cost of Goods Sold (704) (22,004) (632) (19,751) 11.4%
Net Gross Profit 341 10,648 245 7,655 39.1%
32.6% 32.6% 27.9% 27.9% --
Operating Expenses
- Sales & Marketing (18) (567) (20) (629) (9.9%)
- General & Administrative (22) (692) (19) (593) 16.7%
- Research & Development (71) (2,202) (71) (2,224) (1.0%)
(111) (3,461) (110) (3,446) 0.4%
Operating Income 230 7,187 135 4,209 70.8%
22.0% 22.0% 15.4% 15.4% --
Net Non-Operating Income
(Expenses) 62 1,937 70 2,180 (11.1%)
Income from Continuing Operations
before Income Tax 292 9,124 205 6,389 42.8%
27.9% 27.9% 23.3% 23.3% --
Income Tax Expense (13) (404) (10) (298) 35.6%
Income from Continuing Operations 279 8,720 195 6,091 43.2%
Extraordinary Gain -- -- -- -- --
Net Income 279 8,720 195 6,091 43.2%
26.7% 26.7% 22.2% 22.2% --
Earnings per Share 0.022 0.70 0.015 0.48 --
Earnings per ADS (2) 0.112 3.50 0.077 2.40 --
Weighted Average Number of Shares
Outstanding (in millions) -- 12,450 -- 12,672 --
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
September 30, 2010 exchange rate of NT $31.24 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
(Continued)
Quarter over Quarter Comparison
Three-Month Period Ended
September 30, June 30,
2010 2010 %
US$ NT$ US$ NT$ Chg.
Net Sales 1,045 32,652 952 29,745 9.8%
Cost of Goods Sold (704) (22,004) (670) (20,940) 5.1%
Net Gross Profit 341 10,648 282 8,805 20.9%
32.6% 32.6% 29.6% 29.6% --
Operating Expenses
- Sales & Marketing (18) (567) (18) (553) 2.5%
- General & Administrative (22) (692) (22) (679) 1.9%
- Research & Development (71) (2,202) (68) (2,136) 3.1%
(111) (3,461) (108) (3,368) 2.8%
Operating Income 230 7,187 174 5,437 32.2%
22.0% 22.0% 18.3% 18.3% --
Net Non-Operating Income
(Expenses) 62 1,937 4 130 100.0%
Income from Continuing Operations
before Income Tax 292 9,124 178 5,567 63.9%
27.9% 27.9% 18.7% 18.7% --
Income Tax Expense (13) (404) (11) (363) 11.3%
Income from Continuing Operations 279 8,720 167 5,204 67.6%
Extraordinary Gain -- -- 2 69 (100.0%)
Net Income 279 8,720 169 5,273 65.4%
26.7% 26.7% 17.7% 17.7% --
Earnings per Share 0.022 0.70 0.013 0.42 --
Earnings per ADS (2) 0.112 3.50 0.067 2.10 --
Weighted Average Number of Shares
Outstanding (in millions) -- 12,450 -- 12,450 --
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
September 30, 2010 exchange rate of NT $31.24 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month For the Nine-Month Period
Period Ended Ended
September 30, 2010 September 30, 2010
US$ NT$ % US$ NT$ %
Net Sales 1,045 32,652 100.0% 2,852 89,112 100.0%
Cost of Goods Sold (704) (22,004) (67.4%) (2,019) (63,100) (70.8%)
Net Gross Profit 341 10,648 32.6% 833 26,012 29.2%
Operating Expenses
- Sales & Marketing (18) (567) (1.7%) (53) (1,665) (1.9%)
- General &
Administrative (22) (692) (2.1%) (63) (1,973) (2.2%)
- Research &
Development (71) (2,202) (6.7%) (204) (6,346) (7.1%)
(111) (3,461) (10.6%) (320) (9,984) (11.2%)
Operating Income 230 7,187 22.0% 513 16,028 18.0%
Net Non-Operating Income
(Expenses) 62 1,937 5.9% 73 2,264 2.5%
Income from Continuing
Operations before
Income Tax 292 9,124 27.9% 586 18,292 20.5%
Income Tax Expense (13) (404) (1.2%) (29) (886) (1.0%)
Income from Continuing
Operations 279 8,720 26.7% 557 17,406 19.5%
Extraordinary Gain -- -- 0.0% 2 69 0.1%
Net Income 279 8,720 26.7% 559 17,475 19.6%
Earnings per Share 0.022 0.70 -- 0.045 1.40 --
Earnings per ADS (2) 0.112 3.50 -- 0.224 7.00 --
Weighted Average Number
of Shares
Outstanding
(in millions) -- 12,450 -- -- 12,512 --
Notes:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
September 30, 2010 exchange rate of NT $31.24 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Statement of Cash Flows
For The Nine-Month Period Ended September 30, 2010
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
Cash flows from operating activities:
Net Income 559 17,475
Extraordinary gain (3) (82)
Depreciation & Amortization 743 23,210
Gain on recovery in market value
and obsolescence of inventories (9) (268)
Cash dividends received under the
equity method 10 299
Investment gain accounted for
under the equity method (16) (494)
Loss on valuation of financial
assets and liabilities 10 298
Gain on disposal of investments (22) (694)
Gain on disposal of property,
plant and equipment (1) (41)
Exchange gain on financial assets
and liabilities (1) (34)
Exchange gain on long-term
liabilities (4) (126)
Amortization of bond discounts 5 170
Amortization of deferred income (4) (115)
Stock-based payment 15 464
Changes in assets, liabilities
and others (0) (11)
Net cash provided by operating
activities 1,282 40,051
Cash flows from investing activities:
Proceeds from disposal of
available-for-sales financial
assets 52 1,624
Proceed from sale of financial
assets measured at cost 3 84
Acquisition of long-term
investments accounted for under
the equity method (57) (1,782)
Proceeds from disposal of long-
term investments accounted for
the equity method 1 38
Prepayment for long-term
investments (1) (18)
Proceeds from liquidation of
long-term investments 0 10
Acquisition of property, plant
and equipment (1,224) (38,241)
Proceeds from disposal of
property, plant and equipment 2 60
Proceeds from disposal of non-
current assets held for sale 13 401
Increase in deferred charges (10) (322)
Increase in other assets - others (4) (109)
Net cash used in investing activities (1,225) (38,255)
Cash flows from financing activities:
Increase in short-term loans 84 2,622
Proceeds from long-term loans 10 300
Repayments of long-term loans (1) (22)
Redemption of bonds (240) (7,500)
Cash dividends (200) (6,233)
Exercise of employee stock
options 0 3
Purchase of treasury stock (155) (4,844)
Proceeds from disposal of
treasury stock 1 21
Increase in deposits-in 0 7
Net cash used by financing activities (501) (15,646)
Effect of exchange rate changes on
cash and cash equivalents (0) (11)
Net decrease in cash and cash
equivalents (444) (13,861)
Cash and cash equivalents at
beginning of period 1,690 52,792
Cash and cash equivalents at end of
period 1,246 38,931
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
September 30, 2010 exchange rate of NT $31.24 per U.S. Dollar.
All figures are in ROC GAAP.
Contacts:
Richard Yu
UMC, Investor Relations
Tel: +886-2-2700-6999, ext. 6951
Email: [email protected]
SOURCE United Microelectronics Corporation
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