Muted Third Quarter Due to Global Economic Uncertainty
TAIPEI, Taiwan, July 30 /Xinhua-PRNewswire-FirstCall/ --
Second Quarter 2008 Overview (Note 1):
-- Revenue increased 5.1% sequentially to NT$25.24 billion (US$833
million)
-- Gross profit margin of 23%, operating margin of 9.3%
-- Net income increased to NT$2.4 billion (US$79 million)
-- Revenue from 90nm technology and below was 36%
-- EPS was NT$0.19; EPADS was US$0.032
Note 1: Unless otherwise stated, all financial figures discussed in
this announcement are prepared in accordance with ROC GAAP,
which differ in some material respects from generally accepted
accounting principles in the United States. They are un-audited,
unconsolidated, and represent comparisons among the three-month
period ending June 30, 2008, the three-month period ending
March 31, 2007, and the equivalent three-month period that
ended June 30, 2007. For all 2Q08 results, New Taiwan Dollar
(NT$) amounts have been converted into U.S. Dollars at the June
30, 2008 exchange rate of NT$30.33 per U.S. Dollar.
United Microelectronics Corporation (NYSE: UMC) (TSE: 2303) ("UMC" or "the Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the second quarter of 2008.
"As the newly appointed CEO of UMC, I am happy to report that in Q2 2008 UMC saw improvements in revenue, gross margin, and operating margin compared to Q1," said UMC CEO, Dr. Shih-Wei Sun.
"These results were in line with our previously released guidance. Customer demand for advanced 90nm and 65nm technologies remained steady, with combined revenue from these process nodes totaling 36%. Looking forward to Q3, we see that the environment is more challenging than we previously expected. In general, customers have adopted a cautious attitude due to the rising uncertainty in the global economy. We will continue to monitor the situation closely and adjust our operations accordingly."
"Going forward as CEO, my top priority is to ensure that UMC's foundry solutions deliver the greatest benefits to our global customer base. This will enable us to increase our market share among our key foundry customers and maximize profitability. UMC will also continue to focus on operational efficiency and cost control activities through an emphasis on teamwork and execution. At the same time, we will continue to invest in the development of advanced technologies that are critical to our future growth and profitability. UMC is well positioned to weather the headwinds that face the overall economy due to our strengths in R&D and manufacturing, as well as our sound financial structure and our excellent team that has a wealth of experience dealing with the cyclical nature of the semiconductor industry."
Summary of Operating Results
Operating Results
QoQ% YoY%
(Amount: NT$ million) 2Q08 1Q08 change 2Q07 change
Revenue 25,238 24,003 5.1 25,097 0.6
Gross Profit 5,795 3,576 62.1 4,958 16.9
Operating Expenses (3,454) (3,386) 2.0 (3,732) (7.4)
Operating Income 2,341 190 1,132.1 1226 90.9
Non-op. Income
(Expenses) 120 71 69.0 4,182 (97.1)
Net Income 2,397 206 1,063.6 4,911 (51.2)
EPS (NT$ per share) 0.19 0.02 -- 0.28 --
(US$ per ADS) 0.032 0.003 -- 0.046 --
Revenue increased 5.1% quarter-over-quarter to NT$25.24 billion, from NT$24 billion in 1Q08. Gross profit was NT$5.8 billion, or 23% of revenue, compared to NT$3.58 billion, or 14.9% of 1Q08 revenue. Operating income increased 1,132% sequentially to NT$2.34 billion, or 9.3% of 2Q08 revenue. Better capacity utilization and activities on cost control were the key reasons for the increase in revenue, gross profit and operating income during the second quarter. Net income in 2Q08 was NT$2.4 billion, an increase of 1,064% compared to NT$206 million in 1Q08.
Earnings per ordinary share (EPS) for the quarter were NT$0.19. Earnings per ADS (EPADS) were US$0.032. This compares with 1Q08 EPS of NT$0.02 and EPADS of US$0.003. One ADS represents five Taiwan-listed ordinary shares. The basic weighted average number of outstanding shares in 2Q08 was 12,494,809,580, compared with 12,494,809,580 shares in 1Q08 and 17,780,114,848 shares in 2Q07. The diluted weighted average number of outstanding shares was 12,507,200,403 in 2Q08, compared with 12,726,354,496 in 1Q08 and 18,413,194,360 shares in 2Q07. The fully diluted share count on June 30, 2008 was 13,856,573 thousand. On June 30, 2008, UMC held 704,299 thousand treasury shares acquired from the 8th, 9th, and 11th share buy-back programs. UMC will retire 348,583 thousand treasury shares acquired from the 8th share buy-back program in 3Q08.
Detailed Financials Section
Depreciation and amortization totaled NT$9.4 billion in 2Q08, compared with NT$9.61 billion in 1Q08. Depreciation within COGS of NT$7.51 billion went down by 7.3% from 1Q08. Other manufacturing costs within COGS decreased to NT$11.93 billion sequentially, which reflected the results of cost reduction activities. Total operating expenses increased by 2% to NT$3.45 billion. Higher General & Administrative expenses reflected consulting fees for goodwill valuation and additional lawyer fees associated with the LSI lawsuit issue. Sales & Marketing expenses decreased to NT$620 million, mainly due to reduced IP amortization and maintenance fees. The total R&D expenses were 8.28% of revenue in 2Q08.
COGS & Expenses
QoQ% YoY%
(Amount: NT$ million) 2Q08 1Q08 change 2Q07 change
Revenue 25,238 24,003 5.1 25,097 0.6
CoGS (19,443) (20,427) (4.8) (20,139) (3.5)
Depreciation (7,510) (8,098) (7.3) (7,899) (4.9)
Other Mfg. Costs (11,933) (12,329) (3.2) (12,240) (2.5)
Gross Profit 5,795 3,576 62.1 4,958 16.9
Gross Margin (%) 23.0% 14.9% -- 19.8% --
Total Operating Exp. (3,454) (3,386) 2.0 (3,732) (7.4)
G&A (744) (636) 17.0 (691) 7.7
Sales & Marketing (620) (716) (13.4) (732) (15.3)
R&D (2,090) (2,034) 2.8 (2,309) (9.5)
Operating Income 2,341 190 1,132.1 1,226 90.9
Operating Margin (%) 9.3% 0.8% -- 4.9% --
Net non-operating income during 2Q08 was NT$120 million. Gains on the disposal of investments were NT$524 million, including a gain from the sale of MediaTek shares for NT$414 million. Net investment losses were NT$575 million, which included a NT$731 million loss from valuation of ProMos shares. Net foreign exchange gains were NT$103 million, which include NT$36 from foreign exchange gains and NT$67 million from hedging gains.
Non-operating Income (Expenses)
(Amount: NT$ million) 2Q08 1Q08 2Q07
Net Non-operating Income (Exp.) 120 71 4,182
Net Interest Income (Expense) 160 116 349
Net Investment Income (Loss) (575) (278) 760
Gain on Disposal of Investment 524 652 2,634
Exchange Gain (Loss) 36 (718) (46)
Others (25) 299 485
Net cash outflow was NT$4.22 billion in 2Q08. Cash inflow from operations was NT$8.8 billion in 2Q08. The investing cash outflow primarily reflects the NT$2.49 billion of CAPEX in 2Q08. Free cash flow (Note 2) for 2Q08 was NT$6.31 billion. The NT$10.5 billion of financing cash outflow is mainly for the repayment of unsecured corporate bonds. Over the next 12 months, we expect to repay US$15 million in short-term loans.
Note 2: Free cash flow = Operating cash flow - Capital expenditures
Cash Flow Summary
For the 3-Month For the 3-Month
Period Ended Period Ended
(Amount: NT$ million) Jun. 30, 2008 Mar. 31, 2008
Cash Flow from Operations 8,799 9,455
Net Income (Loss) 2,397 206
Depreciation & Amortization 9,404 9,605
Changes in working capital (3,403) 314
Others 401 (670)
Cash Flow from Investing (2,489) (5,362)
Capital Expenditures (2,488) (5,685)
Others (1) 323
Cash Flow from Financing (10,503) (11,763)
Redemption of bonds (10,500) (12,217)
Others (3) 454
Effect of Exchange Rate (24) (148)
Net Cash Flow (4,217) (7,818)
Cash and cash equivalents decreased to NT$25.42 billion during 2Q08, which was mainly due to the cash outflow for capacity expansion and repayment of corporate bonds. The increase in notes and accounts receivable primarily reflected the upward trend of the business in 2Q08. The increase in inventory came from the increase of work-in-process wafers and finished goods.
Current Assets
(Amount: NT$ billion) 2Q08 1Q08 2Q07
Cash & Cash Equivalents 25.42 29.63 77.06
Notes & Accounts Receivable 14.79 12.78 14.15
Days Sales Outstanding 50 50 49
Inventory 12.31 11.09 10.91
Avg. Inventory Turnover 56 51 48
Total Current Assets 58.37 60.06 113.73
Total liabilities decreased to NT$36.48 billion in 2Q08. The decrease was primarily due to the NT$10.5 billion bonds repayment but offset by NT$9.38 billion of dividends payable. UMC's Debt to Equity ratio was 18% at the end of 2Q08.
Liabilities
(Amount: NT$ billion) 2Q08 1Q08 2Q07
Total Current Liabilities 25.22 26.92 54.92
Accounts Payable 4.62 4.50 4.96
Short-term Credit / Bonds 0.46 10.96 23.02
Others 20.14 11.46 26.94
Long-term Liabilities 7.54 7.50 7.49
Total Liabilities 36.48 38.02 66.01
Debt to Equity 18% 17% 23%
Analysis of Revenue (Note 3)
The percentage of revenue from the Asia Pacific and Europe regions increased to 35% and 13%, respectively. This was mainly due to the stronger demand for communication chips.
Note 3: Revenue in this section represents wafer sales
Revenue Breakdown by Region
Region 2Q08 1Q08 4Q07 3Q07 2Q07
North America 50% 58% 51% 49% 47%
Asia Pacific 35% 29% 37% 40% 43%
Europe 13% 11% 10% 9% 8%
Japan 2% 2% 2% 2% 2%
The percentage of revenue from advanced 90nm business increased to 31%, compared to 30% in 1Q08, mainly due to stronger demand for wireless communication chips. The percentage of revenue from 90nm and below was 36% in 2Q08.
Revenue Breakdown by Geometry
Geometry 2Q08 1Q08 4Q07 3Q07 2Q07
65nm 5% 7% 3% 1% --
90nm 31% 30% 23% 24% 17%
90nm< x <=0.13um 21% 21% 22% 23% 25%
0.13um< x <=0.18um 20% 22% 27% 26% 29%
0.18um< x <=0.35um 18% 14% 18% 20% 22%
0.5um and above 5% 6% 7% 6% 7%
The percentage of revenue from fabless customers increased to 71% in 2Q08 from 70% in 1Q08.
Revenue Breakdown by Customer Type
Customer Type 2Q08 1Q08 4Q07 3Q07 2Q07
Fabless 71% 70% 76% 73% 75%
IDM 29% 30% 24% 27% 25%
System 0% 0% 0% 0% 0%
Revenue from the computer segment decreased to 17% of total revenue in 2Q08 due to weaker demand for PC chipsets, graphics and DVD-ROM.
Revenue Breakdown by Application (1)
Application 2Q08 1Q08 4Q07 3Q07 2Q07
Computer 17% 21% 19% 18% 17%
Communication 58% 56% 56% 57% 55%
Consumer 22% 21% 23% 23% 26%
Memory 1% 1% 1% 1% 1%
Others 2% 1% 1% 1% 1%
(1): Computer consists of ICs such as HDD controllers, DVD-ROM/CD-
ROM drives ICs, LCD drivers, graphic processors, and PDAs.
Communication consists of xDSL, DSP, WLAN, LAN controllers,
handset components, caller ID devices, etc. Consumer consists
of ICs used for DVD players, game consoles, digital cameras,
smart cards, toys, etc. Memory consists of DRAM, SRAM, Flash,
EPROM, ROM, and EEPROM.
Blended Average Selling Price Trend
The blended average selling price (ASP) decreased by 2% during 2Q08.
(To view ASP trend, visit
www.umc.com/english/investors/2Q08_ASP_trend.asp )
Shipment and Utilization Rate (Note 4)
875 thousand 8-inch equivalent wafers were shipped in 2Q08, a 8.4% increase from 807 thousand 8-inch equivalents shipped in the previous quarter. Overall utilization rate for the quarter was 85%.
Wafer Shipments
2Q08 1Q08 4Q07 3Q07 2Q07
Wafer Shipments
('000 8-inch eq.) 875 807 921 1,017 804
Note 4: Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
Quarterly Capacity Utilization Rate
2Q08 1Q08 4Q07 3Q07 2Q07
Utilization Rate 85% 73% 86% 93% 76%
Total Capacity
('000 8-inch eq.) 1,107 1,100 1,100 1,095 1,070
Capacity (Note 5)
Total capacity during the second quarter was 1,107 thousand 8-inch equivalent wafers. Compared to 1Q08, the increase of 7 thousand 8-inch equivalent wafers was due to capacity expansion at Fab 12A and some 200mm fabs. Estimated installed capacity in the third quarter is 1,140 thousand 8-inch equivalent wafers. The increase in estimated capacity during the third quarter is due to additional 12-inch capacity expansion for Fab 12i.
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.
Annual Capacity in thousands of 8-inch wafer equivalents
FAB Geometry (um) 2007 2006 2005 2004
Fab 6A 6" 3.5 - 0.45 328 328 344 346
Fab 8AB 8" 0.5 - 0.25 816 816 816 796
Fab 8C 8" 0.35 - 0.15 400 400 401 386
Fab 8D 8" 0.18 - 0.09 260 252 274 256
Fab 8E 8" 0.5 - 0.18 408 406 404 401
Fab 8F 8" 0.25 - 0.15 372 372 378 349
Fab 8S (1) 8" 0.25 - 0.15 276 276 278 131
Fab 12A 12" 0.18 - 0.065 847 754 597 392
Fab 12i (2) 12" 0.13 - 0.065 601 413 363 101
Total (3) 4,308 4,017 3,855 3,158
YoY Growth Rate 7% 4% 22% 19%
Quarterly Capacity in thousands of 8-inch wafer equivalents
FAB 3Q08E 2Q08 1Q08 4Q07
Fab 6A 82 82 82 82
Fab 8AB 204 204 204 204
Fab 8C 101 101 100 100
Fab 8D 66 66 65 65
Fab 8E 102 102 102 102
Fab 8F 93 93 93 93
Fab 8S 72 72 69 69
Fab 12A 218 218 216 216
Fab 12i 202 169 169 169
Total (3) 1,140 1,107 1,100 1,100
(1) Former fab of SiSMC, which was acquired from Silicon Integrated
Systems in July 2004.
(2) Former fab of UMCi, a UMC wholly owned subsidiary in December 2004
that was merged into UMC in April 2005
(3) One 6-inch wafer is converted into 0.5625(6sq/8sq) 8-inch
equivalent wafer; one 12-inch wafer is converted into 2.25(12sq/8sq)
8-inch equivalent wafers.
CAPEX
CAPEX plans for 2008 were maintained at the original guidance range. Capital expenditure for UMC during 2Q08 was US$82 million. Accumulated CAPEX in 1H08 was US$269 million.
UMC Capital Expenditure by Year -- in US$ billion
Year 2007 2006 2005 2004 2003 2002
CAPEX $0.9 $1.0 $0.7(1) $1.5 $0.4 $0.8
2008 CAPEX Plan
8" fab 12" fab 12" R&D Total
UMC 15% 52% 33% US$500-700 million
(1) 2005 CAPEX contained UMC 2005 full year CAPEX and UMCi CAPEX during
1Q05.
Recent Developments / Announcements
Jul. 29, 2008 UMC Joins SEMATECH Research Consortium
Jul. 16, 2008 UMC Announces Restructuring of Executive Team
Jun. 13, 2008 UMC Shareholders Approve NT$1.2 Dividend for Fiscal
Year 2007 at Annual Shareholders Meeting
At the meeting, shareholders approved:
-- The 2007 Business Report and Financial Statements.
The Company's revenue for 2007 was NT$106.77 billion
and net income after tax was NT$16.96 billion, with
earnings per share of NT$1.09.
-- A capitalization of NT$6,775,753,830, which includes
NT$2,146,981,340 from un-appropriated earnings for
and prior to the year 2007 and NT$4,628,772,490 rom
capital reserve.
-- Shareholder cash dividend of NT$9,382,646,949 and
stock dividend of NT$1,000,815,670. The total issued
to shareholders is estimated at NT$1.20 per share,
including cash dividend of estimated NT$0.75 per
share, stock dividend of estimated NT$0.08 per share,
and an estimated NT$0.37 per share from capital
reserve in stock.
-- A total of NT$1,433 million for employee bonus (cash
Bonus of NT$286,541,418 and stock bonus of
NT$1,146,165,670), which is 8.45% of net income after
tax.
Jun. 10, 2008 Magma and UMC Announce UPF-Compliant Low-Power
Reference Flow
Jun. 10, 2008 Extreme DA and UMC Collaborate to Provide Sub 65-nm
Variation-Aware IC Design Flows
Jun. 09, 2008 Synopsys and UMC Release 65-Nanometer Low Power Design
Flow Enabled by the Unified Power Format
Jun. 09, 2008 Cadence Collaborates with UMC to Deliver 65nm CPF-Based
Low-Power Reference Design Flow
May 13, 2008 UMC and Mentor Graphics Introduce Foundry Design Kits
(FDK) for Mixed-Mode and RF Technologies
May 02, 2008 UMC Files Form 20-F for 2007 with US Securities and
Exchange Commission
Apr. 30, 2008 UMC 1Q 2008 Financial Result
Please visit UMC's website http://www.umc.com/english/news/index.asp for further details regarding the above announcements.
Third Quarter of 2008 Outlook & Guidance
Quarter-over-quarter Guidance:
-- Wafer Shipments: to be flat from previous quarter
-- Wafer ASP in US$: to decrease by approximately 0-2% points
-- Impact from Currency Fluctuation: 0% to -2% on revenue
-- Capacity Utilization Rates: approximately 80%
-- Profitability: gross profit margin to be in high teen % points
-- The consumer segment is expected to be the strongest followed by the
communication and computer segments
-- 2008 Capex Budget: US$500-700 million
Conference Call / Webcast Announcement
Wednesday, July 30, 2008
Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)
Dial-in numbers and Access Codes:
USA Toll Free: 1866 549 1292
UK Toll Free: 0808 234 6305
Singapore Toll Free: 800 852 3576
Hong Kong and Other Areas: +852 3005 2050
Access Code: UMC
A live webcast and replay of the 2Q08 results announcement will be available at http://www.umc.com under the "Investor Relations \ Investor Events" section.
About UMC
UMC (NYSE: UMC) (TSE: 2303) is a leading global semiconductor foundry that manufactures advanced system-on-chip (SoC) designs for applications spanning every major sector of the IC industry. UMC's SoC Solution Foundry strategy is based on the strength of the company's advanced technologies, which include production proven 90nm, 65nm, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. The company employs approximately 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
Except for statements in respect of historical matters, the statements in this release contain "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. 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, among other things: our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; the risks associated with international global business activities; our dependence upon key personnel; general economic and political conditions, including those related to the semiconductor, communications, consumer electronics and computer industries; possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; reduced end-user purchases relative to expectations and orders; fluctuations in foreign currency exchange rates; and those risks identified in the section entitled "Risk Factors" in UMC's Annual Report on Form 20-F ("20-F") for the year ended December 31, 2007 filed with the U.S. Securities and Exchange Commission on May 2, 2008.
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, as described in note 35 to the financial statements on 20-F.
The forward-looking statements in this release reflect the current belief of UMC as of the date of this release and UMC undertakes no obligation to update these forward-looking statements for events or circumstances that occur after such date or to reflect the occurrence of unanticipated events.
-- FINANCIAL TABLES TO FOLLOW --
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Balance Sheet
As of June 30, 2008
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
June 30, 2008
US$ NT$ %
ASSETS
Current Assets
Cash and Cash Equivalents 838 25,418 10.4%
Financial assets at fair value
through profit or loss, current 109 3,309 1.4%
Notes & Accounts Receivable 488 14,790 6.1%
Inventories 406 12,309 5.1%
Other Current Assets 84 2,546 1.0%
Total Current Assets 1,925 58,372 24.0%
Non-Current Assets
Funds and Long-term Investments 2,041 61,903 25.5%
Property, Plant and Equipment 3,707 112,430 46.2%
Intangible Assets 123 3,745 1.5%
Other Assets 223 6,768 2.8%
Total Non-Current Assets 6,094 184,846 76.0%
TOTAL ASSETS 8,019 243,218 100.0%
LIABILITIES
Current Liabilities
Short-term Loans 15 456 0.2%
Financial liabilities at fair
value through profit or loss,
current 1 33 0.0%
Payables 500 15,135 6.2%
Dividends payable 309 9,383 3.9%
Other Current Liabilities 7 215 0.1%
Total Current Liabilities 832 25,222 10.4%
Non-Current Liabilities
Financial liabilities at fair
value through profit or loss,
non-current 1 43 0.0%
Bonds Payable 247 7,496 3.1%
Other Liabilities 123 3,719 1.5%
Total Non-Current Liabilities 371 11,258 4.6%
TOTAL LIABILITIES 1,203 36,480 15.0%
STOCKHOLDERS' EQUITY
Capital Stock 4,580 138,921 57.1%
Additional Paid-in Capital 2,028 61,520 25.3%
Retained Earnings, Unrealized Gain
on Financial Assets and
Translation Adjustment 703 21,300 8.8%
Treasury Stock (495) (15,003) -6.2%
TOTAL STOCKHOLDERS' EQUITY 6,816 206,738 85.0%
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 8,019 243,218 100.0%
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2008 exchange rate of NT$30.33 per U.S. Dollar.
All figures are in ROC GAAP.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison
Three-Month Period Ended
Jun 30, 2008 Jun 30, 2007 %
US$ NT$ US$ NT$ Chg.
Net Sales 833 25,238 827 25,097 0.6%
Cost of Goods Sold (642) (19,443) (664) (20,139) -3.5%
Net Gross Profit 191 5,795 163 4,958 16.9%
23.0% 23.0% 19.8% 19.8% --
Operating Expenses
-- Sales & Marketing 20 620 24 732 -15.3%
-- General & Administrative 25 744 23 691 7.7%
-- Research & Development 69 2,090 76 2,309 -9.5%
114 3,454 123 3,732 -7.4%
Operating Income (Loss) 77 2,341 40 1,226 90.9%
9.3% 9.3% 4.9% 4.9% --
Net Non-Operating Income
(Expenses) 4 120 138 4,182 -97.1%
Income (Loss) from continuing
operations before income tax 81 2,461 178 5,408 -54.5%
9.8% 9.8% 21.6% 21.6% --
Income Tax (Expense) Benefit (2) (64) (16) (497) -87.1%
Net Income (Loss) 79 2,397 162 4,911 -51.2%
9.5% 9.5% 19.6% 19.6% --
Earnings per Share 0.006 0.19 0.009 0.28 --
Earnings per ADS (2) 0.032 0.95 0.046 1.40 --
Weighted Average
Number of Shares
Outstanding (in millions) -- 12,495 -- 17,780 --
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
Quarter over Quarter Comparison
Three-Month Period Ended
Jun 30, 2008 Mar 31, 2008 %
US$ NT$ US$ NT$ Chg.
Net Sales 833 25,238 791 24,003 5.1%
Cost of Goods Sold (642) (19,443) (673) (20,427) -4.8%
Net Gross Profit 191 5,795 118 3,576 62.1%
23.0% 23.0% 14.9% 14.9% --
Operating Expenses
-- Sales & Marketing 20 620 24 716 -13.4%
-- General & Administrative 25 744 21 636 17.0%
-- Research & Development 69 2,090 67 2,034 2.8%
114 3,454 112 3,386 2.0%
Operating Income (Loss) 77 2,341 6 190 1,132.1%
9.3% 9.3% 0.8% 0.8% --
Net Non-Operating Income
(Expenses) 4 120 3 71 69.0%
Income (Loss) from continuing
operations before income tax 81 2,461 9 261 842.9%
9.8% 9.8% 1.1% 1.1% --
Income Tax (Expense) Benefit (2) (64) (2) (55) 16.4%
Net Income (Loss) 79 2,397 7 206 1,063.6%
9.5% 9.5% 0.9% 0.9%
Earnings per Share 0.006 0.19 0.001 0.02 --
Earnings per ADS (2) 0.032 0.95 0.003 0.10 --
Weighted Average
Number of Shares
Outstanding (in millions) -- 12,495 -- 12,495 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2008 exchange rate of NT$30.33 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month Period For the year
Ended Ended
Jun 30, 2008 Jun 30, 2008
US$ NT$ % US$ NT$ %
Net Sales 833 25,238 100.0% 1,624 49,241 100.0%
Cost of Goods Sold (642) (19,443) -77.0% (1,315) (39,870) -81.0%
Net Gross Profit 191 5,795 23.0% 309 9,371 19.0%
Operating Expenses
-- Sales & Marketing 20 620 2.5% 44 1,336 2.7%
-- General &
Administrative 25 744 2.9% 46 1,380 2.8%
-- Research &
Development 69 2,090 8.3% 136 4,124 8.4%
114 3,454 13.7% 226 6,840 13.9%
Operating Income (Loss) 77 2,341 9.3% 83 2,531 5.1%
Net Non-Operating Income
(Expenses) 4 120 0.5% 7 191 0.4%
Income (Loss) from
continuing operations
before income tax 81 2,461 9.8% 90 2,722 5.5%
Income Tax (Expense)
Benefit (2) (64) -0.3% (4) (119) -0.2%
Net Income (Loss) 79 2,397 9.5% 86 2,603 5.3%
Earnings per Share 0.006 0.19 -- 0.007 0.21 --
Earnings per ADS (2) 0.032 0.95 -- 0.035 1.05 --
Weighted Average
Number of Shares
Outstanding (in millions) -- 12,495 -- -- 12,495 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2008 exchange rate of NT$30.33 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Statement of Cash Flows
For The Six Months Ended Jun. 30, 2008
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
Cash flows from operating activities:
Net Income 86 2,603
Depreciation & Amortization 627 19,009
Gain on recovery in market value
and obsolescence of inventories 3 106
Cash dividends received under the
equity method 4 135
Investment loss accounted for
under the equity method 3 87
Gain on valuation of financial
assets and liabilities 26 775
Impairment loss 3 86
Gain on disposal of investments (39) (1,176)
Gain on disposal of property,
plant and equipment (1) (17)
Exchange gain on financial assets
and liabilities (0) (14)
Exchange gain on long-term
liabilities (6) (179)
Amortization of bond discounts 0 7
Amortization of deferred income (3) (79)
Change in assets, liabilities and
others (102) (3,089)
Net cash provided from operating
activities 601 18,254
Cash flows from investing activities:
Proceeds from disposal of
available-for-sales financial
assets 28 851
Acquisition of financial assets
measured at cost (1) (37)
Acquisition of long-term
investments accounted for the
equity method (1) (27)
Acquisition of property, plant
and equipment (270) (8,173)
Proceeds from disposal of
property, plant and equipment 1 28
Acquisition of deferred charges (16) (495)
Decrease in other assets -- others 0 2
Net cash used in investing activities (259) (7,851)
Cash flows from financing activities:
Proceeds from short-term Loans 15 456
Redemption of bonds (749) (22,717)
Decrease in deposits-in (0) (5)
Net cash used in financing activities (734) (22,266)
Effect of exchange rate changes on
cash and cash equivalents (5) (172)
Decrease in cash and cash equivalents (397) (12,035)
Cash and cash equivalents at
beginning of period 1,235 37,453
Cash and cash equivalents at end of
period 838 25,418
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2008 exchange rate of NT$30.33 per U.S. Dollar.
All figures are in ROC GAAP.
Contacts:
Bowen Huang or I Cheng Lu
UMC, Investor Relations
Tel: +886-2-2700-6999 ext. 6957
Email: bowen_huang@umc.com or i_cheng_lu@umc.com
Web site: http://www.umc.com/