Year-over-year, third quarter revenue decreased 3.3% while net income decreased 0.1% and diluted EPS increased 0.3%. Compared to second quarter of 2009, third quarter results represent a 21.2% increase in revenue, an increase of 25% in net income, and an increase of 24.8% in diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.
Gross margin for the quarter was 47.7%, operating margin was 35.6%, and net margin was 34%.
As demand outlook continued to improve, third quarter saw a solid growth in the demand for semiconductors across all major applications.
Advanced process technologies (0.13-micron and below) accounted for 67% of wafer revenues. 90-nanometer process technology accounted for 18% of wafer revenues, 65-nanometer 31%, and 40-nanometer exceeded 4% of total wafer sales.
"For the fourth quarter, we expect the demand from computer related applications to grow strongly while communication related applications will take a pause after two consecutive quarters' strong momentum, and consumer applications will decline following their seasonal pattern," said Lora Ho, VP and Chief Financial Officer of TSMC. "Based on our current business outlook, management expects overall performance for fourth quarter 2009 to be as follows:
-- Revenue is expected to be between NT$90 billion and NT$92 billion;
-- Gross profit margin is expected to be between 47% and 48.5%;
-- Operating profit margin is expected to be between 35.5% and 37%."
Lora Ho further said: "Due to stronger demand for 40-nanometer and 65-nanometer technologies, TSMC 2009 capital expenditure is further raised and is expected to be around US$2.7 billion."
Conference Call & Webcast Notice:
TSMC's quarterly review conference call will be held at 8 a.m. Eastern Time (8 p.m. Taiwan Time) on Thursday, October 29, 2009. The conference call will also be webcast live on the Internet. Investors wishing to access the live webcast should visit TSMC's web site at http://www.tsmc.com at least 15 minutes prior to the broadcast. Instructions will be provided on the web site to facilitate the download and installation of necessary audio applications. Investors without Internet access may listen to the conference call, in listen-only mode, by dialing 1-617-614-3518 in the U.S., 852-3002-1672 in Hong Kong, and 44-207-365-8426 in the U.K. (Password: TSMC). An archived version of the webcast will be available on TSMC's web site for six months following the Company's quarterly review conference call and webcast.
Profile
TSMC is the world's largest dedicated semiconductor foundry, providing the industry's leading process technology and the foundry's largest portfolio of process-proven libraries, IPs, design tools and reference flows. The Company's total managed capacity in 2008 exceeded nine million (8-inch equivalent) wafers, including capacity from two advanced 12-inch GIGAFABs(TM), four eight-inch fabs, one six-inch fab, as well as TSMC's wholly owned subsidiaries, WaferTech and TSMC China, and its joint venture fab, SSMC. TSMC is the first foundry to provide 40nm production capabilities. Its corporate headquarters are in Hsinchu, Taiwan. For more information about TSMC please visit http://www.tsmc.com .
(Management Report and Tables Follow)
TSMC 3Q09 Quarterly Management Report October 29, 2009
Topics in This Report
-- Revenue Analysis
-- Profit & Expense Analysis
-- Financial Condition Review
-- Cash Flow
-- CapEx & Capacity
-- Recap of Recent Important Events & Announcements
Operating Results Review:
Summary:
(Amounts are on consolidated basis
and are in NT billions except
otherwise noted) 3Q09 2Q09 3Q08 QoQ YoY
EPS (NT$ per common share) 1.18 0.94 1.17 24.8% 0.3%
(US$ per ADR unit) 0.18 0.14 0.19 -- --
Consolidated Net Sales 89.94 74.21 92.98 21.2% (3.3%)
Gross Profit 42.86 34.30 43.09 25.0% (0.5%)
Gross Margin 47.7% 46.2% 46.3% -- --
Operating Expense (10.87) (9.17) (10.18) 18.6% 6.9%
Operating Income 31.99 25.13 32.91 27.3% (2.8%)
Operating Margin 35.6% 33.9% 35.4% -- --
Non-Operating Items 0.97 1.26 1.51 -- --
Net Income 30.55 24.44 30.57 25.0% (0.1%)
Net Profit Margin 34.0% 32.9% 32.9% -- --
Wafer Shipment (kpcs 8 inch-equiv.) 2,445 1,971 2,411 24.0% 1.4%
Note: Total outstanding shares were 25,901mn units on 9/30/09
Financial Highlights:
Third Quarter 2009
-- Consolidated net sales were NT$89.94 billion, representing a 21.2%
growth from NT$74.21 billion in 2Q09 and a 3.3% decline from NT$92.98
billion in 3Q08.
-- Gross margin was 47.7%, 1.5 percentage points higher than 2Q09 and 1.4
percentage points higher than 3Q08.
-- Operating margin was 35.6%, 1.7 percentage points higher than 2Q09 and
0.2 percentage point higher than 3Q08. Operating expenses were NT$10.87
billion, NT$1.7 billion and NT$0.69 billion higher than prior and
year-ago quarter, respectively.
-- The combined result from non-operating income and long-term investments
was a gain of NT$0.97 billion, comparing with a gain of NT$1.26 billion
in 2Q09 and a gain of NT$1.51 billion in 3Q08.
-- Consolidated net income attributable to shareholders of the parent
company was NT$30.55 billion, 25.0% increase from prior quarter. Net
profit margin was 34.0% and diluted EPS was NT$1.18.
I. Revenue Analysis
I. Wafer Sales Analysis
By Application 3Q09 2Q09 3Q08
Computer 30% 28% 33%
Communication 46% 45% 41%
Consumer 18% 21% 20%
Industrial/Others 6% 6% 6%
By Technology 3Q09 2Q09 3Q08
45/40nm 4% 1% 0%
65nm 31% 28% 25%
90nm 18% 23% 26%
0.11/0.13um 14% 13% 15%
0.15/0.18um 21% 23% 22%
0.25/0.35um 9% 9% 9%
0.50um+ 3% 3% 3%
By Customer Type 3Q09 2Q09 3Q08
Fabless/System 80% 82% 70%
IDM 20% 18% 30%
By Geography 3Q09 2Q09 3Q08
North America 70% 65% 74%
Asia Pacific 13% 18% 11%
China 3% 3% 1%
Europe 11% 11% 11%
Japan 3% 3% 3%
