Company to enhance advanced processes and long-term competitiveness
(PRNewswire) —Fourth Quarter 2012 Overview[Note 1]:
- Revenue: declined 8.5% QoQ to NT$26.09 billion (US$898.66 million)
- Gross margin: 16.8%; operating margin: 3.7%
- Capacity utilization: 80%
- Net income: NT$1.17 billion (US$40.41 million)
- Earnings per share: NT$0.09; earnings per ADS: US$0.016
|
Note 1: |
Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with ROC GAAP, which differ in some material respects from generally accepted accounting principles in the United States. They are un-audited, unconsolidated, and represent comparisons among the three-month period ending Dec 31, 2012, the three-month period ending Sep 30, 2012, and the equivalent three-month period that ended Dec 31, 2011. For all 4Q12 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Dec 31, 2012 exchange rate of NT$29.03 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 fourth quarter of 2012.
Revenue was NT$26.09 billion, an 8.5% quarter-over-quarter decrease from NT$28.53 billion in 3Q12, and a 6.8% year-over-year increase from NT$24.43 billion in 4Q11. Gross margin was 16.8%, operating margin was 3.7%, net income was NT$1.17 billion, and earnings per ordinary share were NT$ 0.09. In 2012, revenue for the full year was NT$106.00 billion, with NT$9.08 billion operating income, NT$7.92 billion net income and NT$0.63 earnings per share.
Mr. Po-Wen Yen, UMC's newly appointed CEO, said, "In 4Q 2012, both UMC's revenue and gross profit were in line with expectations. Quarter-over-quarter revenue decline was primarily attributed to decreased wafer shipments. A total of 1.07 million 8-inch equivalent wafers were shipped, with overall capacity utilization at 80%. Due to the impact from declining wafers shipments and currency appreciation, gross margin for the quarter was 16.8%. Revenue contribution from 40nm continued its sequential increase to 15%, reaching our internal target."
CEO Yen continued, "As industry competition intensifies, the bar has been raised with regard to customer expectations for leading-edge technology products' time to market and foundry service flexibility. As UMC's newly appointed CEO, my first priority is to enhance R&D for advanced processes. In order to realize maximum benefits from our R&D efforts, we will increase internal resources while leverage outside collaboration so that we may effectively integrate R&D with manufacturing to ensure timely delivery of key projects. For example, UMC's FinFET development began in 2010, and was bolstered in 2012 through a cooperative licensing agreement with IBM for their fundamental FinFET technology. Our FinFET development team has since been making good progress. Meanwhile, UMC recently demonstrated the world's first TSV-enabled 3DIC chip stacking technology developed under an open ecosystem collaboration. The 3DIC, developed with an OSAT partner, reached a major milestone by passing package-level reliability assessment. This successful collaboration reaffirms our strong commitment to elevating technology capabilities in order to fulfill the promise of providing high value-added services to customers. UMC's operating results can be further enhanced through management's team effort to increase capacity, control cost, and expand our customer base. Although UMC's 28nm ramp has been slower than anticipated, we remain dedicated to advanced technology development and timely capacity deployment to serve our customers' needs. Equally important is our customers' unwavering commitment to bringing their new and existing 28nm products to fruition at UMC."
CEO Yen added, "In the short-term, we continue to see elevated demand uncertainty from customers, along with supply chain inventory that will need additional time to digest. When demand recovers, we are optimistic about the growth momentum from the strong mobile communications segment. 2013 is a critical year for UMC to demonstrate continuous success. In addition to acquiring Hejian Technology's operation, which will help UMC expand in the China market and broaden the company's operating scale, we will continue to invest appropriate capex to further our advanced process R&D and expand leading-edge capacity. These endeavors will help expedite company growth and strengthen competitiveness to enhance UMC and its customers' overall value while increasing shareholders' equity."
Summary of Operating Results
|
Operating Results | |||||
|
(Amount: NT$ million) |
4Q12 |
3Q12 |
QoQ %
|
4Q11 |
YoY %
|
|
Revenue |
26,088 |
28,525 |
(8.5) |
24,425 |
6.8 |
|
Gross Profit |
4,372 |
6,850 |
(36.2) |
4,550 |
(3.9) |
|
Operating Expenses |
(3,409) |
(3,238) |
5.3 |
(3,710) |
(8.1) |
|
Operating Income |
963 |
3,612 |
(73.3) |
840 |
14.6 |
|
Non-Operating Income |
391 |
83 |
371.1 |
149 |
162.4 |
|
Net Income |
1,173 |
2,417 |
(51.5) |
980 |
19.7 |
|
EPS (NT$ per share) |
0.09 |
0.19 |
|
0.08 |
|
|
(US$ per ADS[Note 2]) |
0.016 |
0.033 |
|
0.014 |
|
|
Note 2: One ADS represents five Taiwan-listed ordinary shares. | |||||
Revenue decreased 8.5% QoQ to NT$26.09 billion from NT$28.53 billion in 3Q12, and increased 6.8% YoY from NT$24.43 billion in 4Q11. Gross profit was NT$4.37 billion, or 16.8% of revenue, compared to NT$6.85 billion, or 24.0% of 3Q12 revenue. Operating income for the quarter was NT$963 million, or 3.7% of revenue, compared to NT$3.61 billion, or 12.7% of 3Q12 revenue. Net income in 4Q12 was NT$1.17 billion, compared to NT$2.42 billion in 3Q12.
Earnings per ordinary share for the quarter were NT$0.09. Earnings per ADS were US$0.016. The basic weighted average number of outstanding shares in 4Q12 was 12,635,635,936, compared with 12,628,658,938 shares in 3Q12 and 12,609,375,064 shares in 4Q11. The diluted weighted average number of outstanding shares was 13,321,721,668 in 4Q12, compared with 13,309,367,195 shares in 3Q12 and 13,319,535,653 shares in 4Q11. The fully diluted share count on December 31, 2012 was approximately 14,062,286,000. On December 31, 2012, UMC held 300 million treasury shares acquired from the 14th share buy-back programs.
Detailed Financials Section
Revenue decreased 8.5% QoQ to NT$26.09 billion from NT$28.53 billion in 3Q12, mainly due to decrease in shipment quantity. Gross profit was NT$4.37 billion, or 16.8% of revenue, compared to NT$6.85 billion, or 24.0% of 3Q12 revenue due to shipment decline and currency appreciation. Sales and Marketing expenses decreased to NT$323 million due to a reversal of bad debt expenses from customers. Research and development expenses increased to NT$2.49 billion in 4Q, mainly due to the increase in R&D wafers and masks for advanced process nodes. The total R&D expense was 9.5% of revenue in 4Q12.
|
COGS & Expenses | |||||
|
(Amount: NT$ million) |
4Q12 |
3Q12 |
QoQ %
|
4Q11 |
YoY %
|
|
Revenue |
26,088 |
28,525 |
(8.5) |
24,425 |
6.8 |
|
COGS |
(21,716) |
(21,675) |
0.2 |
(19,875) |
9.3 |
|
Depreciation |
(6,841) |
(7,122) |
(3.9) |
(6,800) |
0.6 |
|
Other Mfg. Costs |
(14,875) |
(14,553) |
2.2 |
(13,075) |
13.8 |
|
Gross Profit |
4,372 |
6,850 |
(36.2) |
4,550 |
(3.9) |
|
Gross Margin (%) |
16.8% |
24.0% |
|
18.6% |
|
|
Total Operating Exp. |
(3,409) |
(3,238) |
5.3 |
(3,710) |
(8.1) |
|
G&A |
(598) |
(515) |
16.1 |
(601) |
(0.5) |
|
Sales & Marketing |
(323) |
(504) |
(35.9) |
(822) |
(60.7) |
|
R&D |
(2,488) |
(2,219) |
12.1 |
(2,287) |
8.8 |
|
Operating Income |
963 |
3,612 |
(73.3) |
840 |
14.6 |
Net non-operating income during 4Q12 increased QoQ to NT$391 million. Net investment loss was NT$1.04 billion, losses were primarily due to UMC Japan and solar business operations. Gain on disposal of investment mainly came from conversion of Novatek exchangeable bonds. The gain from other items mainly composed of gain on redemption of bonds payable and loss from valuation of financial liabilities.
|
Non-Operating Income (Expenses) | |||
|
(Amount: NT$ million) |
4Q12 |
3Q12 |
4Q11 |
|
Net Non-Operating Income |
391 |
83 |
149 |
|
Net Interest Income (Loss) |
(54) |
(37) |
(7) |
|
Net Investment Loss |
(1,041) |
(1,068) |
(1,485) |
|
Gain (Loss) on Disposal of Investment |
1,493 |
1,544 |
2 |
|
Exchange Gain (Loss) |
(60) |
(0) |
45 |
|
Other Gain (Loss) |
53 |
(356) |
1,594 |
Operating cash inflow was NT$11.60 billion. Free cash flow for 4Q12 was negative NT$544 million, as CAPEX spending for the quarter was NT$12.14 billion. The NT$466 million of financing cash inflow was mainly from the increase of bank loans. Net cash outflow was NT$293 million in 4Q12.
|
Cash Flow Summary | ||
|
(Amount: NT$ million) |
For the 3-Month Period Ended Dec. 31, 2012 |
For the 3-Month Period Ended Sep. 30, 2012 |
|
Cash Flow from Operations |
11,599 |
10,184 |
|
Net Income |
1,173 |
2,417 |
|
Depreciation & Amortization |
8,791 |
8,605 |
|
Changes in Working Capital |
881 |
(1,920) |
|
Other |
754 |
1,082 |
|
Cash Flow from Investing |
(12,170) |
(9,138) |
|
Capital Expenditures |
(12,143) |
(11,692) |
|
Liquid of Investment |
14 |
674 |
|
Other |
(41) |
1,880 |
|
Cash Flow from Financing |
466 |
(5,247) |
|
Bank Loans |
571 |
904 |
|
Bonds Issued |
- |
(4) |
|
Cash Dividends |
- |
(6,316) |
|
Reacquisition of ECB |
(139) |
- |
|
Other |
34 |
169 |
|
Effect of Exchange Rate |
(188) |
(314) |
|
Net Cash Flow |
(293) |
(4,515) |
Current assets decreased to NT$65.22 billion, mainly due to decrease in financial assets resulting from exchangeable bond holders exercising their exchange rights. The three-day increase from inventory turnover days resulted from higher raw material levels from increasing customers' demand at leading-edge nodes.
|
Current Assets | |||
|
(Amount: NT$ billion) |
4Q12 |
3Q12 |
4Q11 |
|
Cash & Cash Equivalents |
31.76 |
32.05 |
30.83 |
|
Notes & Accounts Receivable |
14.11 |
15.90 |
12.50 |
|
Days Sales Outstanding |
52 |
51 |
49 |
|
Inventories |
11.85 |
11.36 |
10.48 |
|
Avg. Inventory Turnover |
50 |
47 |
51 |
|
Total Current Assets |
65.22 |
68.31 |
60.77 |
Total current liabilities decreased to NT$29.27 billion in 4Q12, attributed to the payment on equipment, which consequently resulted in a drop in debt to equity ratio to 31% in 4Q.
|
Liabilities | |||
|
(Amount: NT$ billion) |
4Q12 |
3Q12 |
4Q11 |
|
Total Current Liabilities |
29.27 |
35.07 |
31.75 |
|
Accounts Payable |
4.98 |
5.25 |
4.00 |
|
Short-Term Credit / Bonds |
8.15 |
9.30 |
10.43 |
|
Payable on Equipment |
4.13 |
8.76 |
6.72 |
|
Other |
12.01 |
11.76 |
10.60 |
|
Long-Term Liabilities |
28.89 |
28.37 |
15.20 |
|
Total Liabilities |
61.79 |
67.02 |
50.56 |
|
Debt to Equity |
31% |
33% |
24% |
Analysis of Revenue[Note 3]
|
Note 3: |
Revenue in this section represents wafer sales. |
|
| |
The percentage of revenue from Asia Pacific increased to 45%, reflecting the relative strength of Asia Pacific based consumer and communication customers.
|
Revenue Breakdown by Region | |||||
|
Region |
4Q12 |
3Q12 |
2Q12 |
1Q12 |
4Q11 |
|
North America |
45% |
50% |
45% |
45% |
47% |
|
Asia Pacific |
45% |
40% |
46% |
46% |
43% |
|
Europe |
9% |
9% |
8% |
8% |
9% |
|
Japan |
1% |
1% |
1% |
1% |
1% |
Revenue contribution from 40nm and below grew from 13% in 3Q12 to 15% in 4Q12, reaching the company's year-end internal target.
|
Revenue Breakdown by Geometry | |||||
|
Geometry |
4Q12 |
3Q12 |
2Q12 |
1Q12 |
4Q11 |
|
40nm and below |
15% |
13% |
9% |
9% |
8% |
|
40nm<x<=65nm |
40% |
41% |
40% |
40% |
41% |
|
65nm<x<=90nm |
7% |
7% |
7% |
6% |
6% |
|
90nm<x<=0.13um |
15% |
15% |
18% |
20% |
23% |
|
0.13um<x<=0.18um |
10% |
9% |
10% |
10% |
10% |
|
0.18um<x<=0.35um |
10% |
11% |
11% |
11% |
9% |
|
0.5um and above |
3% |
4% |
5% |
4% |
3% |
The percentage of revenue from Fabless and IDM customers were 90% and 10% respectively for 4Q.
|
Revenue Breakdown by Customer Type | |||||
|
Customer Type |
4Q12 |
3Q12 |
2Q12 |
1Q12 |
4Q11 |
|
Fabless |
90% |
83% |
82% |
80% |
79% |
|
IDM |
10% |
17% |
18% |
20% |
21% |
Computer segment showed weakness in 4Q, including demand in display IC.
|
Revenue Breakdown by Application (1) | |||||
|
Application |
4Q12 |
3Q12 |
2Q12 |
1Q12 |
4Q11 |
|
Computer |
18% |
21% |
17% |
21% |
14% |
|
Communication |
50% |
49% |
54% |
49% |
60% |
|
Consumer |
29% |
27% |
26% |
27% |
23% |
|
Others |
3% |
3% |
3% |
3% |
3% |
|
(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset. Communication consists of handset components, broadband, WLAN, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc. | |||||
Blended Average Selling Price Trend
The blended average selling price (ASP) was flat during 4Q12.
(To view ASP trend, visit http://www.umc.com/english/investors/4Q12_ASP_trend.asp )
Shipment and Utilization Rate[Note 4]
|
Note 4: |
Utilization Rate = Quarterly Wafer Out / Quarterly Capacity |
|
| |
Wafer shipments decreased 5.7% sequentially to 1,069K in 4Q12, compared to 1,133K 8-inch equivalent wafers in 3Q12. Due to the drop in shipment quantity and total capacity being at a larger level, overall utilization rate for the quarter declined slightly to 80%.
|
Wafer Shipments | |||||
|
|
4Q12 |
3Q12 |
2Q12 |
1Q12 |
4Q11 |
|
Wafer Shipments
|
1,069 |
1,133 |
1,142 |
963 |
915 |
|
| |||||
|
Quarterly Capacity Utilization Rate | |||||
|
|
4Q12 |
3Q12 |
2Q12 |
1Q12 |
4Q11 |
|
Utilization Rate |
80% |
84% |
84% |
71% |
68% |
|
Total Capacity
|
1,401 |
1,376 |
1,372 |
1,364 |
1,376 |
Capacity[Note 5]
|
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. |
|
| |
Capacity during the fourth quarter was 1,401K 8-inch equivalent wafers. The estimated capacity for the first quarter will increase to 1,461K 8-inch equivalent wafers as Fab8N's capacity will be included starting from February, 2013.
|
Annual Capacity in thousands of wafers |
|
Quarterly Capacity in thousands of wafers | ||||||||||
|
FAB |
Geometry
|
2012 |
2011 |
2010 |
2009 |
|
FAB |
1Q13E |
4Q12 |
3Q12 |
2Q12 | |
|
Fab6A |
6" |
3.5 - 0.45 |
481 |
538 |
588 |
583 |
|
Fab6A |
113 |
113 |
123 |
123 |
|
Fab8A |
8" |
0.5 - 0.25 |
815 |
813 |
816 |
816 |
|
Fab8A |
201 |
204 |
204 |
204 |
|
Fab8C |
8" |
0.35 - 0.11 |
360 |
359 |
366 |
405 |
|
Fab8C |
86 |
90 |
90 |
90 |
|
Fab8D |
8" |
0.13 - 0.09 |
371 |
364 |
314 |
267 |
|
Fab8D |
94 |
93 |
93 |
93 |
|
Fab8E |
8" |
0.5 - 0.18 |
449 |
469 |
410 |
408 |
|
Fab8E |
103 |
113 |
113 |
113 |
|
Fab8F |
8" |
0.18 - 0.11 |
389 |
388 |
388 |
381 |
|
Fab8F |
96 |
98 |
98 |
98 |
|
Fab8S |
8" |
0.18 - 0.11 |
348 |
307 |
304 |
300 |
|
Fab8S |
83 |
87 |
87 |
87 |
|
Fab12A |
12" |
0.18 - 0.028 |
579 |
501 |
374 |
385 |
|
Fab8N(2) |
83 |
- |
- |
- |
|
Fab12i |
12" |
0.13 - 0.040 |
537 |
530 |
454 |
362 |
|
Fab12A |
158 |
156 |
143 |
141 |
|
Total(1) |
5,514 |
5,322 |
4,791 |
4,586 |
|
Fab12i |
132 |
134 |
134 |
134 | ||
|
YoY Growth Rate |
4% |
11% |
4% |
2% |
|
Total |
1,461 |
1,401 |
1,376 |
1,372 | ||
|
(1)One 6-inch wafer is converted into 0.5625(6 square/8 square) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25(12 square/8 square) 8-inch equivalent wafers. Capacity total figures are expressed in 8-inch equivalent wafers. (2) Fab8N's capacity will be included starting February, 2013. | ||||||||||||
CAPEX
The total capital expenditure for 2012 was US$1.7 billion. The foundry capital expenditure budget for 2013 is expected to be approximately US$1.5 billion. 94% of the amount will be used for 12" advanced capacity expansion.
|
UMC Capital Expenditure by Year - in US$ billion | |||||||
|
Year |
2012 |
2011 |
2010 |
2009 |
2008 | ||
|
CAPEX |
$ 1.7 |
$ 1.6 |
$ 1.8 |
$ 0.55 |
$ 0.35 | ||
|
| |||||||
|
2013 Foundry CAPEX Plan | |||||||
|
8" |
12" |
Total | |||||
|
6% |
94% |
Approximately US$1.5 billion | |||||
Brief Summary of Full Year 2012 Results
- Revenue increased 0.1% YoY to NT$106.00 billion from NT$105.88 billion in 2011.
- Gross profit margin was 21.2%, compared to 22.7% in 2011.
- Operating profit margin was 8.6%, compared to 9.6% in 2011.
- Net income was NT$7.92 billion for 2012.
- EPS was NT$0.63, or EPADS was US$0.109 for 2012, compared to EPS of NT$0.84 or EPADS of US$0.145 for 2011.
- The percentage of revenue from 40nm and below technologies increased from 6% in 2011 to 11% in 2012. Percentage of revenue from 65nm and below technologies accounted for 52% in 2012.
|
Operating Results | |||
|
(Amount: NT$ million) |
2012 |
2011 |
YoY %
|
|
Revenue |
105,998 |
105,880 |
0.1 |
|
Gross Profit |
22,512 |
23,995 |
(6.2) |
|
Operating Expenses |
(13,431) |
(13,857) |
(3.1) |
|
Operating Income |
9,081 |
10,138 |
(10.4) |
|
Non-Operating Income |
904 |
1,228 |
(26.4) |
|
Income Tax Expenses |
(2,070) |
(756) |
173.8 |
|
Net Income |
7,915 |
10,610 |
(25.4) |
|
EPS (NT$ per share) |
0.63 |
0.84 |
|
|
(US$ per ADS) |
0.109 |
0.145 |
|
|
| |||
|
Annual Sales Breakdown in Revenue | ||
|
Region |
2012 |
2011 |
|
North America |
46% |
49% |
|
Asia Pacific |
45% |
39% |
|
Europe |
8% |
11% |
|
Japan |
1% |
1% |
|
|
|
|
|
Technology |
2012 |
2011 |
|
40nm and below |
11% |
6% |
|
40nm<x<=65nm |
41% |
33% |
|
65nm<x<=90nm |
7% |
11% |
|
90nm<x<=0.13um |
17% |
24% |
|
0.13um<x<=0.18um |
10% |
12% |
|
0.18um<x<=0.35um |
10% |
9% |
|
0.5um and above |
4% |
5% |
|
|
|
|
|
Customer Type |
2012 |
2011 |
|
Fabless |
84% |
75% |
|
IDM |
16% |
25% |
|
|
|
|
|
Application |
2012 |
2011 |
|
Computer |
19% |
15% |
|
Communication |
50% |
55% |
|
Consumer |
27% |
27% |
|
Others |
4% |
3% |
First Quarter of 2013 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Foundry Segment Wafer Shipment: To increase by approximately 6%
- Foundry Segment ASP in US$: To decrease by approximately 6%
- Foundry Segment Profitability: Operating margin to be approximately break-even
- Foundry Segment Capacity Utilization: Approximately 75%
- 2013 Foundry CAPEX Budget: US$1.5bn
- Guidance to Non-Operating Income and New Business Segment:
- Non-Operating Income after-tax to be approximately US$100mn +
- New Business Segment revenue to be approximately NT$2bn, and operating margin to be in loss of approximately NT$1bn
Recent Developments / Announcements
|
Jan. 29, 2013 |
STATS ChipPAC and UMC Unveil World's First 3D IC Developed Under An Open Ecosystem Model |
|
Jan. 22, 2013 |
Faraday and UMC Deliver 300 Million Gate 40nm Customer SoC |
|
Jan. 15, 2013 |
UMC Introduces Thick Plated Copper Process For Monolithic PMIC Applications |
|
Dec. 26, 2012 |
UMC Receives ICP Certification From The Bureau of Foreign Trade |
|
Dec. 18, 2012 |
UMC Achieves Foundry's First 55nm SDDI Customer Product Tape-out |
|
Nov. 21, 2012 |
UMC Unveils 80nm SDDI Foundry Process Featuring The Industry's Most Competitive SRAM Bitcell |
|
Nov. 19, 2012 |
UMC Restructures Executive Team |
|
Oct. 31, 2012 |
UMC 3Q 2012 Financial Results |
Please visit UMC's website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, February 06, 2013
|
Time: |
9:00 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 6723 9381 |
|
| |
|
Access Code: |
UMC |
A live webcast and replay of the 4Q12 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 for applications spanning every major sector of the IC industry. UMC's customer-driven foundry solutions allow chip designers to leverage the company's leading-edge processes, which include 28nm poly-SiON and gate-last High-K/Metal Gate technology, 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. Fab 12A consists of Phases 1-4 which are in production for customer products down to 28nm. Construction is underway for Phases 5&6, with future plans for Phases 7&8. The company employs over 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.
Note from UMC Concerning Forward-Looking Statements
Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information concerning these risks is included in UMC's filings with the U.S. SEC, including on Form F-1, F-3, F-6 and 20-F, each as amended.
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, 2012 | |||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012 | ||||
|
|
US$ |
|
NT$ |
|
% |
|
ASSETS |
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
Cash and Cash Equivalents |
1,094 |
|
31,757 |
|
12.0% |
|
Financial Assets at Fair Value through Profit or Loss, current |
23 |
|
656 |
|
0.2% |
|
Available-for-Sale Financial Assets, current |
149 |
|
4,331 |
|
1.6% |
|
Notes & Accounts Receivable, net |
486 |
|
14,110 |
|
5.3% |
|
Inventories, net |
408 |
|
11,851 |
|
4.5% |
|
Other Current Assets |
87 |
|
2,515 |
|
1.1% |
|
Total Current Assets |
2,247 |
|
65,220 |
|
24.7% |
|
|
|
|
|
|
|
|
Non-Current Assets |
|
|
|
|
|
|
Funds and Investments |
1,655 |
|
48,033 |
|
18.2% |
|
Property, Plant and Equipment, net |
4,999 |
|
145,135 |
|
54.9% |
|
Other Assets |
205 |
|
5,946 |
|
2.2% |
|
Total Non-Current Assets |
6,859 |
|
199,114 |
|
75.3% |
|
TOTAL ASSETS |
9,106 |
|
264,334 |
|
100.0% |
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
Short-term Loans |
80 |
|
2,326 |
|
0.9% |
|
Financial Liabilities at Fair Value through Profit or Loss, current |
26 |
|
768 |
|
0.3% |
|
Payables |
688 |
|
19,956 |
|
7.5% |
|
Current Portion of Long-term Liabilities |
201 |
|
5,819 |
|
2.2% |
|
Other Current Liabilities |
14 |
|
406 |
|
0.2% |
|
Total Current Liabilities |
1,009 |
|
29,275 |
|
11.1% |
|
|
|
|
|
|
|
|
Non-Current Liabilities |
|
|
|
|
|
|
Bonds Payable |
755 |
|
21,932 |
|
8.3% |
|
Long-term Loans |
240 |
|
6,962 |
|
2.6% |
|
Other Liabilities |
125 |
|
3,621 |
|
1.4% |
|
Total Non-Current Liabilities |
1,120 |
|
32,515 |
|
12.3% |
|
TOTAL LIABILITIES |
2,129 |
|
61,790 |
|
23.4% |
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Capital Stock |
4,462 |
|
129,521 |
|
49.0% |
|
Additional Paid-in Capital |
1,619 |
|
46,995 |
|
17.8% |
|
Retained Earnings, Unrealized Gain or Loss on Financial
|
1,067 |
|
30,991 |
|
11.7% |
|
Treasury Stock |
(171) |
|
(4,963) |
|
(1.9%) |
|
TOTAL STOCKHOLDERS' EQUITY |
6,977 |
|
202,544 |
|
76.6% |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
9,106 |
|
264,334 |
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note：New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2012 exchange rate of NT $29.03 per U.S. Dollar. All figures are in ROC GAAP. | |||||
|
| |||||
|
UNITED MICROELECTRONICS CORPORATION | |||||||||||||||||||
|
Condensed Unconsolidated Income Statement | |||||||||||||||||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||
|
Except Per Share and Per ADS Data | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year over Year Comparison |
|
Quarter over Quarter Comparison | ||||||||||||||||
|
|
Three-Month Period Ended |
|
|
|
Three-Month Period Ended |
|
| ||||||||||||
|
|
December 31, 2012 |
|
December 31, 2011 |
|
% |
|
December 31, 2012 |
|
September 30, 2012 |
|
% | ||||||||
|
|
US$ |
|
NT$ |
|
US$ |
|
NT$ |
|
Chg. |
|
US$ |
|
NT$ |
|
US$ |
|
NT$ |
|
Chg. |
|
Net Sales |
899 |
|
26,088 |
|
842 |
|
24,425 |
|
6.8% |
|
899 |
|
26,088 |
|
983 |
|
28,525 |
|
(8.5%) |
|
Cost of Goods Sold |
(748) |
|
(21,716) |
|
(685) |
|
(19,875) |
|
9.3% |
|
(748) |
|
(21,716) |
|
(747) |
|
(21,675) |
|
0.2% |
|
Net Gross Profit |
151 |
|
4,372 |
|
157 |
|
4,550 |
|
(3.9%) |
|
151 |
|
4,372 |
|
236 |
|
6,850 |
|
(36.2%) |
|
|
16.8% |
|
16.8% |
|
18.6% |
|
18.6% |
|
|
|
16.8% |
|
16.8% |
|
24.0% |
|
24.0% |
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Sales & Marketing |
(11) |
|
(323) |
|
(28) |
|
(822) |
|
(60.7%) |
|
(11) |
|
(323) |
|
(17) |
|
(504) |
|
(35.9%) |
|
- General & Administrative |
(21) |
|
(598) |
|
(21) |
|
(601) |
|
(0.5%) |
|
(21) |
|
(598) |
|
(18) |
|
(515) |
|
16.1% |
|
- Research & Development |
(86) |
|
(2,488) |
|
(79) |
|
(2,287) |
|
8.8% |
|
(86) |
|
(2,488) |
|
(77) |
|
(2,219) |
|
12.1% |
|
|
(118) |
|
(3,409) |
|
(128) |
|
(3,710) |
|
(8.1%) |
|
(118) |
|
(3,409) |
|
(112) |
|
(3,238) |
|
5.3% |
|
Operating Income |
33 |
|
963 |
|
29 |
|
840 |
|
14.6% |
|
33 |
|
963 |
|
124 |
|
3,612 |
|
(73.3%) |
|
|
3.7% |
|
3.7% |
|
3.4% |
|
3.4% |
|
|
|
3.7% |
|
3.7% |
|
12.7% |
|
12.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Non-Operating Income (Expenses) |
14 |
|
391 |
|
5 |
|
149 |
|
100.0% |
|
14 |
|
391 |
|
3 |
|
83 |
|
100.0% |
|
Income from Continuing Operations before
|
47 |
|
1,354 |
|
34 |
|
989 |
|
36.9% |
|
47 |
|
1,354 |
|
127 |
|
3,695 |
|
(63.4%) |
|
|
5.2% |
|
5.2% |
|
4.1% |
|
4.1% |
|
|
|
5.2% |
|
5.2% |
|
13.0% |
|
13.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense |
(7) |
|
(181) |
|
(0) |
|
(9) |
|
100.0% |
|
(7) |
|
(181) |
|
(44) |
|
(1,278) |
|
(85.8%) |
|
Net Income |
40 |
|
1,173 |
|
34 |
|
980 |
|
19.7% |
|
40 |
|
1,173 |
|
83 |
|
2,417 |
|
(51.5%) |
|
|
4.5% |
|
4.5% |
|
4.0% |
|
4.0% |
|
|
|
4.5% |
|
4.5% |
|
8.5% |
|
8.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share |
0.003 |
|
0.09 |
|
0.003 |
|
0.08 |
|
|
|
0.003 |
|
0.09 |
|
0.007 |
|
0.19 |
|
|
|
Earnings per ADS (2) |
0.016 |
|
0.45 |
|
0.014 |
|
0.40 |
|
|
|
0.016 |
|
0.45 |
|
0.033 |
|
0.95 |
|
|
|
Weighted Average Number of Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding (in millions) |
|
|
12,636 |
|
|
|
12,609 |
|
|
|
|
|
12,636 |
|
|
|
12,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2012 exchange rate of NT $29.03 per U.S. Dollar. All figures are in ROC GAAP. (2) 1 ADS equals 5 common shares. | |||||||||||||||||||
|
| |||||||||||||||||||
|
UNITED MICROELECTRONICS CORPORATION | |||||||||||
|
Condensed Unconsolidated Income Statement | |||||||||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||
|
Except Per Share and Per ADS Data | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three-Month Period Ended |
|
For the Twelve-Month Period Ended | ||||||||
|
|
December 31, 2012 |
|
December 31, 2012 | ||||||||
|
|
US$ |
|
NT$ |
|
% |
|
US$ |
|
NT$ |
|
% |
|
Net Sales |
899 |
|
26,088 |
|
100.0% |
|
3,652 |
|
105,998 |
|
100.0% |
|
Cost of Goods Sold |
(748) |
|
(21,716) |
|
(83.2%) |
|
(2,876) |
|
(83,486) |
|
(78.8%) |
|
Net Gross Profit |
151 |
|
4,372 |
|
16.8% |
|
776 |
|
22,512 |
|
21.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
- Sales & Marketing |
(11) |
|
(323) |
|
(1.3%) |
|
(63) |
|
(1,829) |
|
(1.7%) |
|
- General & Administrative |
(21) |
|
(598) |
|
(2.3%) |
|
(79) |
|
(2,291) |
|
(2.1%) |
|
- Research & Development |
(86) |
|
(2,488) |
|
(9.5%) |
|
(321) |
|
(9,311) |
|
(8.8%) |
|
|
(118) |
|
(3,409) |
|
(13.1%) |
|
(463) |
|
(13,431) |
|
(12.6%) |
|
Operating Income |
33 |
|
963 |
|
3.7% |
|
313 |
|
9,081 |
|
8.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Non-Operating Income (Expenses) |
14 |
|
391 |
|
1.5% |
|
31 |
|
904 |
|
0.8% |
|
Income from Continuing Operations before
|
47 |
|
1,354 |
|
5.2% |
|
344 |
|
9,985 |
|
9.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense |
(7) |
|
(181) |
|
(0.7%) |
|
(71) |
|
(2,070) |
|
(1.9%) |
|
Net Income |
40 |
|
1,173 |
|
4.5% |
|
273 |
|
7,915 |
|
7.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share |
0.003 |
|
0.09 |
|
|
|
0.022 |
|
0.63 |
|
|
|
Earnings per ADS (2) |
0.016 |
|
0.45 |
|
|
|
0.109 |
|
3.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of Shares
|
|
|
12,636 |
|
|
|
|
|
12,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes: |
|
|
|
|
|
|
|
|
|
|
|
|
(1) New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2012 exchange rate of NT $29.03 per U.S. Dollar. All figures are in ROC GAAP. (2) 1 ADS equals 5 common shares. | |||||||||||
|
| |||||||||||
|
UNITED MICROELECTRONICS CORPORATION | ||||
|
Condensed Unconsolidated Statement of Cash Flows | ||||
|
For The Twelve-Month Period Ended December 31, 2012 | ||||
|
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||
|
|
|
|
|
|
|
|
USD |
|
NTD |
|
|
Cash flows from operating activities : |
|
|
|
|
|
Net Income |
273 |
|
7,915 |
|
|
Depreciation & Amortization |
1,149 |
|
33,346 |
|
|
Gain on recovery in bad debt |
(8) |
|
(227) |
|
|
Loss on decline in market value and obsolescence of inventories |
34 |
|
999 |
|
|
Cash dividends received under the equity method |
2 |
|
57 |
|
|
Investment lossaccounted for under the equity method |
123 |
|
3,581 |
|
|
Loss on valuation of financial assets and liabilities |
21 |
|
622 |
|
|
Impairment loss |
3 |
|
90 |
|
|
Gain on disposal of investments |
(120) |
|
(3,482) |
|
|
Gain on disposal of property, plant and equipment |
(1) |
|
(20) |
|
|
Exchange gain on financial assets and liabilities |
(4) |
|
(116) |
|
|
Exchange gain on long-term liabilities |
(4) |
|
(123) |
|
|
Amortization of bond discounts |
12 |
|
338 |
|
|
Gain on reacquisition of bonds |
(4) |
|
(105) |
|
|
Amortization of deferred income |
(3) |
|
(93) |
|
|
Stock-based payment |
7 |
|
196 |
|
|
Exchange gain on capital reduction of long-term investments accounted
|
(8) |
|
(233) |
|
|
Changes in assets, liabilities and others |
(41) |
|
(1,210) |
|
|
Net cash provided by operating activities |
1,431 |
|
41,535 |
|
|
|
|
|
|
|
|
Cash flows from investing activities : |
|
|
|
|
|
Proceeds from disposal of available-for-sales financial assets |
93 |
|
2,711 |
|
|
Proceeds from disposal of financial assets measured at cost |
0 |
|
0 |
|
|
Acquisition of long-term investments accounted for under the equity
|
(1) |
|
(16) |
|
|
Proceeds from capital reduction and liquidation of investments |
106 |
|
3,063 |
|
|
Acquisition of property, plant and equipment |
(1,750) |
|
(50,818) |
|
|
Acquisition of intangible assets |
(26) |
|
(749) |
|
|
Proceeds from disposal of property, plant and equipment |
1,000 |
|
31 |
|
|
Increase in deferred charges |
(22) |
|
(628) |
|
|
Increase in other assets - others |
(3) |
|
(105) |
|
|
Net cash used in investing activities |
(1,602) |
|
(46,511) |
|
|
|
|
|
|
|
|
Cash flows from financing activities : |
|
|
|
|
|
Decrease in short-term loans |
(73) |
|
(2,124) |
|
|
Proceeds from long-term loans |
224 |
|
6,500 |
|
|
Repayments of long-term loans |
(58) |
|
(1,691) |
|
|
Reacquisition of bonds |
(5) |
|
(139) |
|
|
Proceeds from bonds issued |
344 |
|
10,000 |
|
|
Bonds issue cost |
(0) |
|
(13) |
|
|
Cash Dividends |
(218) |
|
(6,316) |
|
|
Exercise of employee stock options |
9 |
|
266 |
|
|
Proceeds from disposal of treasury stock |
0 |
|
4 |
|
|
Increase in deposits-in |
2 |
|
56 |
|
|
Net cash providedby financing activities |
225 |
|
6,543 |
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
(22) |
|
(639) |
|
|
Net increase in cash and cash equivalents |
32 |
|
928 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
1,062 |
|
30,829 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
1,094 |
|
31,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: New Taiwan Dollars have been translated into U.S. Dollars at the December 31, 2012 exchange rate of NT $29.03 per U.S. Dollar. All figures are in ROC GAAP. | ||||
Contacts:
Bowen Huang / Peter Lu
UMC, Investor Relations
+886-2-2658-9168, ext. 16904
Email Contact
Email Contact
SOURCE United Microelectronics Corporation
| Contact: |
| United Microelectronics Corporation
Web: http://www.umc.com |