Company posts EPS of NT$0.10 in 1Q19;
Board of Directors approves 100% cash dividend payout to shareholders
First Quarter 2019 Overview1:
- Revenue: NT$32.58 billion (US$1.06 billion)
- Gross margin: 6.9%
- Foundry revenue from 28nm: 10%; Foundry operating margin: -4.6%
- Foundry capacity utilization rate: 83%
- Net income to stockholders of the parent: NT$1.20 billion (US$39 million)
- Earnings per share: NT$0.10; earnings per ADS: US$0.016
TAIPEI, Taiwan — (BUSINESS WIRE) — April 24, 2019 — United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the first quarter of 2019.
First quarter consolidated revenue was NT$32.58 billion, down 8.3% QoQ from NT$35.52 billion in 4Q18 and declined 13.1% YoY from NT$37.50 billion in 1Q18. Consolidated gross margin for 1Q19 was 6.9%. Net income attributable to stockholders of the parent was NT$1.20 billion, with earnings per ordinary share of NT$0.10.
Jason Wang, co-president of UMC, said, “In the first quarter, foundry revenue declined 8.3% QoQ to NT$32.56 billion, leading to a foundry operating loss of 4.6%. Utilization rate was 83%, bringing wafer shipments to 1.61 million 8-inch equivalent wafers. Although overall wafer demand declined during the first quarter, we observed stable wafer shipments from the wireless communications segment, solidified by smartphone related components such as display, RF, application processor and baseband modem. We continue to build on our promise of building shareholder value, and in Q1 our Board of Directors proposed to distribute a cash dividend of approximately NT$0.58 per share, subject to shareholder approval during the annual shareholder meeting (AGM).”
Co-president Wang further commented, “Entering the second quarter of 2019, UMC will sustain its energy on its continuing transformation, which will allow us to best take advantage of improving wafer demand within wired and wireless communication segments, with smartphones, networking, and display related products currently seeing better than expected conditions. Going forward, our strategy to stay focused on developing existing logic and specialty solutions across numerous technology platforms will help us enhance our market relevance to secure future business and expand our presence in the IC industry. We are confident that by continuing to responsibly execute our technology development, capacity expansion and customer service, we can bring optimal value to the company, its shareholders, and employees.”
Summary of Operating Results
Operating Results | ||||||||||
(Amount: NT$ million) | 1Q19 | 4Q18 |
QoQ %
change |
1Q18 |
YoY %
change |
|||||
Operating Revenues | 32,583 | 35,517 | (8.3) | 37,497 | (13.1) | |||||
Gross Profit | 2,262 | 4,601 | (50.8) | 4,642 | (51.3) | |||||
Operating Expenses | (4,932) | (6,396) | (22.9) | (4,850) | 1.7 | |||||
Net Other Operating Income and Expenses | 1,073 | 1,206 | (11.0) | 977 | 9.8 | |||||
Operating Income (Loss) | (1,597) | (589) | 171.3 | 769 | - | |||||
Net Non-Operating Income and Expenses | 1,247 | (1,998) | - | 1,088 | 14.6 | |||||
Net Income (Loss) Attributable to Stockholders of the
|
1,201 | (1,707) | - | 3,400 | (64.7) | |||||
EPS (NT$ per share) |
0.10 | (0.14) | 0.28 | |||||||
(US$ per ADS) |
0.016 | (0.023) | 0.045 |
Operating revenues in 1Q19 declined 8.3% to NT$32.58 billion, including NT$32.56 billion from the foundry segment. Revenue contribution from 40nm and below technologies was 30%. Gross profit fell 50.8% to NT$2.26 billion, or 6.9% of revenue. Operating expenses declined 22.9% to NT$4.93 billion. Net other operating income was NT$1.07 billion, leading to an operating loss of NT$1.60 billion. Net non-operating income was NT$1.25 billion. Net income attributable to stockholders of the parent was NT$1.20 billion.
Earnings per ordinary share for the quarter was NT$0.10. Earnings per ADS was US$0.016. The basic weighted average number of outstanding shares in 1Q19 was 11,908,706,645, compared with 12,111,826,935 shares in 4Q18 and 12,202,773,078 shares in 1Q18. The diluted weighted average number of outstanding shares was 13,238,181,278 in 1Q19, compared with 12,111,826,935 shares in 4Q18 and 13,457,161,259 shares in 1Q18. The fully diluted share count on March 31, 2019 was approximately 13,453,794,000. On March 31, 2019, UMC held 200 million treasury shares acquired from the 17th share buy-back program.
Detailed Financials Section
COGS & Expenses | ||||||||||
(Amount: NT$ million) | 1Q19 | 4Q18 |
QoQ %
|
1Q18 |
YoY %
change |
|||||
Operating Revenues | 32,583 | 35,517 | (8.3) | 37,497 | (13.1) | |||||
COGS | (30,321) | (30,916) | (1.9) | (32,855) | (7.7) | |||||
Depreciation | (10,497) | (10,228) | 2.6 | (11,815) | (11.2) | |||||
Other Mfg. Costs | (19,824) | (20,688) | (4.2) | (21,040) | (5.8) | |||||
Gross Profit | 2,262 | 4,601 | (50.8) | 4,642 | (51.3) | |||||
Gross Margin (%) | 6.9% | 13.0% | 12.4% | |||||||
Operating Expenses | (4,932) | (6,396) | (22.9) | (4,850) | 1.7 | |||||
G&A | (1,236) | (1,339) | (7.7) | (1,017) | 21.5 | |||||
Sales & Marketing | (889) | (903) | (1.6) | (909) | (2.2) | |||||
R&D | (2,807) | (3,745) | (25.0) | (2,924) | (4.0) | |||||
Expected Credit Losses | - | (409) | (100.0) | - | - | |||||
Net Other Operating
Income & Expenses |
1,073 | 1,206 | (11.0) | 977 | 9.8 | |||||
Operating Income
|
(1,597) | (589) | 171.3 | 769 | - |
Operating revenues decreased 8.3% to NT$32.58 billion. COGS declined 1.9% to NT$30.32 billion, as depreciation increased 2.6% to NT$10.50 billion while other manufacturing costs declined 4.2% to NT$19.82 billion. Gross profit was NT$2.26 billion. Operating expenses declined 22.9% to NT$4.93 billion, which included a 25% decrease in R&D expense to NT$2.81 billion and a 7.7% decline in General and Administrative (G&A) expense. R&D expense represented 8.6% of 1Q19 operating revenues and net other operating income was NT$1.07 billion. Overall, the company realized an operating loss of NT$1.60 billion.
Non-Operating Income and Expenses | ||||||
(Amount: NT$ million) | 1Q19 | 4Q18 | 1Q18 | |||
Non-Operating Income and Expenses | 1,247 | (1,998) | 1,088 | |||
Net Interest Income and Expenses | (473) | (438) | (529) | |||
Net Investment Gain and Loss | 1,228 | (1,859) | 582 | |||
Exchange Gain and Loss | 507 | 304 | 1,021 | |||
Other Gain and Loss | (15) | (5) | 14 |
Net non-operating income in 1Q19 was NT$1.25 billion, primarily resulting from NT$1.23 billion in net investment gain and NT$507 million in exchange gain, partly offset by NT$473 million in net interest expense.
Cash Flow Summary |
||||
(Amount: NT$ million) |
For the 3-Month
|
For the 3-Month
|
||
Cash Flow from Operating Activities | 8,183 | 12,123 | ||
Net loss before tax | (350) | (2,587) | ||
Depreciation & Amortization | 12,380 | 12,414 | ||
Expected credit losses | - | 409 | ||
Net loss (gain) of financial assets
|
(1,032) | 635 | ||
Share of profit or loss of associates and
|
(196) | 1,148 | ||
Exchange gain on financial assets
|
(554) | (68) | ||
Changes in working capital | (1,339) | 1,319 | ||
Interest paid | (215) | (905) | ||
Other | (511) | (242) | ||
Cash Flow from Investing Activities | (5,683) | (4,613) | ||
Acquisition of PP&E | (5,563) | (4,361) | ||
Acquisition of intangible assets | (530) | (292) | ||
Other | 410 | 40 | ||
Cash Flow from Financing Activities | 2,180 | (5,724) | ||
Bank loans | 2,463 | (2,863) | ||
Treasury stock acquired | (331) | (3,019) | ||
Other | 48 | 158 | ||
Effect of Exchange Rate | 396 | 356 | ||
Net Cash Flow | 5,076 | 2,142 |
Cash inflow from operating activities was NT$8.18 billion. CAPEX from foundry segment was NT$5.75 billion leading in free cash flow of NT$2.43 billion. Cash inflow from financing activities totaled NT$2.18 billion, including NT$2.46 billion cash inflow from bank loans and NT$331 million payment of treasury share buyback. Net cash inflow in 1Q19 was NT$5.08 billion. Over the next 12 months, the company expects to repay NT$1.56 billion in bank loans.
Current Assets | ||||||
(Amount: NT$ billion) | 1Q19 | 4Q18 | 1Q18 | |||
Cash and Cash Equivalents | 88.74 | 83.66 | 77.14 | |||
Notes & Accounts Receivable | 22.99 | 23.88 | 25.01 | |||
Days Sales Outstanding | 66 | 64 | 56 | |||
Inventories, net | 18.87 | 18.20 | 17.14 | |||
Days of Inventory | 56 | 53 | 49 | |||
Total Current Assets | 146.80 | 141.19 | 136.42 |
Cash and cash equivalents increased to NT$88.74 billion. Days of inventory increased three days to 56 days.
Liabilities | ||||||
(Amount: NT$ billion) | 1Q19 | 4Q18 | 1Q18 | |||
Total Current Liabilities | 52.64 | 49.90 | 72.57 | |||
Notes & Accounts Payable | 6.78 | 6.80 | 7.00 | |||
Short-Term Credit / Bonds | 23.35 | 18.23 | 40.00 | |||
Payable on Equipment | 2.95 | 4.01 | 2.97 | |||
Other | 19.56 | 20.86 | 22.60 | |||
Long-Term Credit / Bonds | 64.98 | 67.08 | 52.61 | |||
Long-Term Investment Liabilities | 20.99 | 20.41 | 20.90 | |||
Total Liabilities | 164.32 | 158.07 | 169.35 | |||
Debt to Equity | 78% | 77% | 78% |
Current liabilities increased to NT$52.64 billion. Total liabilities increased to NT$164.32 billion, leading to a debt to equity ratio of 78%.
Analysis of Revenue2 for Foundry Segment
Revenue Breakdown by Region | ||||||||||
Region | 1Q19 | 4Q18 | 3Q18 | 2Q18 | 1Q18 | |||||
North America | 32% | 38% | 34% | 37% | 42% | |||||
Asia Pacific | 57% | 51% | 52% | 51% | 47% | |||||
Europe | 7% | 8% | 11% | 9% | 8% | |||||
Japan | 4% | 3% | 3% | 3% | 3% |
Revenue from Asia Pacific increased to 57%, while contribution from North American customers declined to 32%. Revenue from Europe and Japan was 7% and 4%, respectively.
Revenue Breakdown by Geometry | ||||||||||
Geometry | 1Q19 | 4Q18 | 3Q18 | 2Q18 | 1Q18 | |||||
14nm and below | 0% | 1% | 5% | 3% | 2% | |||||
14nm<x<=28nm | 10% | 10% | 13% | 15% | 12% | |||||
28nm<x<=40nm | 20% | 23% | 22% | 26% | 30% | |||||
40nm<x<=65nm | 14% | 13% | 12% | 12% | 13% | |||||
65nm<x<=90nm | 12% | 11% | 10% | 7% | 6% | |||||
90nm<x<=0.13um | 15% | 13% | 11% | 11% | 11% | |||||
0.13um<x<=0.18um | 15% | 15% | 14% | 13% | 13% | |||||
0.18um<x<=0.35um | 11% | 11% | 10% | 10% | 10% | |||||
0.5um and above | 3% | 3% | 3% | 3% | 3% |
Revenue contribution from 28nm remained flat at 10% as 40nm business accounted for 20% of sales.
Revenue Breakdown by Customer Type | ||||||||||
Customer Type | 1Q19 | 4Q18 | 3Q18 | 2Q18 | 1Q18 | |||||
Fabless | 94% | 92% | 93% | 92% | 92% | |||||
IDM | 6% | 8% | 7% | 8% | 8% |
Revenue from fabless customers increased to 94% of revenue.
Revenue Breakdown by Application (1) | ||||||||||
Application | 1Q19 | 4Q18 | 3Q18 | 2Q18 | 1Q18 | |||||
Computer | 15% | 15% | 19% | 16% | 14% | |||||
Communication | 48% | 44% | 43% | 47% | 47% | |||||
Consumer | 29% | 30% | 28% | 28% | 29% | |||||
Others | 8% | 11% | 10% | 9% | 10% |
The communication segment increased to 48% of sales, while revenue from consumer applications was 29%. Computer related applications remained at 15% of revenue.
(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 ASP Trend for Foundry Segment
Blended average selling price (ASP) in 1Q19 decreased slightly.
(To view ASP trend, visit http://www.umc.com/english/investors/1Q19_ASP_trend.asp)
Shipment and Utilization Rate3 for Foundry Segment
Wafer Shipments | ||||||||||
1Q19 | 4Q18 | 3Q18 | 2Q18 | 1Q18 | ||||||
Wafer Shipments
(8” K equivalents) |
1,611 | 1,711 | 1,804 | 1,846 | 1,747 | |||||
Quarterly Capacity Utilization Rate | ||||||||||
1Q19 | 4Q18 | 3Q18 | 2Q18 | 1Q18 | ||||||
Utilization Rate | 83% | 88% | 94% | 97% | 94% | |||||
Total Capacity
(8” K equivalents) |
1,937 | 1,958 | 1,938 | 1,918 | 1,858 |
In 1Q19, wafer shipments decreased 5.8% to 1,611K. Quarterly capacity declined 1.1% QoQ to 1,937K, resulting in an overall utilization rate of 83%.
Capacity4 for Foundry Segment
Total capacity in the first quarter totaled 1,937K 8-inch equivalent wafers. We expect second quarter capacity to increase by approximately 2.7% QoQ to 1,989K 8-inch equivalent wafers, mainly attributed to the ongoing expansion efforts at HJ.
Annual Capacity in
thousands of wafers |
Quarterly Capacity in
thousands of wafers |
||||||||||||||||||||||
FAB |
Geometry
(um) |
2018 | 2017 | 2016 | 2015 | FAB | 2Q19E | 1Q19 | 4Q18 | 3Q18 | |||||||||||||
WTK | 6" | 3.5 – 0.45 | 396 | 422 | 423 | 421 | WTK | 93 | 91 | 93 | 93 | ||||||||||||
Fab 8A | 8" | 0.5 – 0.25 | 825 | 825 | 827 | 813 | Fab 8A | 207 | 204 | 207 | 207 | ||||||||||||
Fab 8C | 8" | 0.35 – 0.11 | 383 | 357 | 348 | 347 | Fab 8C | 109 | 106 | 108 | 92 | ||||||||||||
Fab 8D | 8" | 0.13 – 0.09 | 347 | 341 | 342 | 341 | Fab 8D | 90 | 89 | 90 | 86 | ||||||||||||
Fab 8E | 8" | 0.5 – 0.18 | 418 | 418 | 419 | 418 | Fab 8E | 105 | 103 | 105 | 105 | ||||||||||||
Fab 8F | 8" | 0.18 – 0.11 | 431 | 417 | 401 | 388 | Fab 8F | 108 | 107 | 108 | 108 | ||||||||||||
Fab 8S | 8" | 0.18 – 0.11 | 372 | 347 | 336 | 335 | Fab 8S | 93 | 92 | 93 | 93 | ||||||||||||
HJ | 8" | 0.5 – 0.11 | 771 | 753 | 750 | 667 | HJ | 224 | 201 | 194 | 194 | ||||||||||||
Fab 12A | 12" | 0.13 – 0.014 | 997 | 970 | 885 | 793 | Fab 12A | 250 | 246 | 250 | 250 | ||||||||||||
Fab 12i | 12" | 0.13 – 0.040 | 555 | 537 | 584 | 572 | Fab 12i | 144 | 141 | 144 | 144 | ||||||||||||
USCXM | 12" | 0.040 – 0.028 | 183 | 97 | 9 | - | USCXM | 51 | 50 | 51 | 51 | ||||||||||||
Total(1) | 7,673 | 7,304 | 6,983 | 6,617 | Total | 1,989 | 1,937 | 1,958 | 1,938 | ||||||||||||||
YoY Growth Rate | 5% | 5% | 6% | 5% |
(1)One 6-inch wafer is converted into 0.5625(62/82) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25(122/82) 8-inch equivalent wafers. Capacity total figures are expressed in 8-inch equivalent wafers.
CAPEX for Foundry Segment
Capital Expenditure by Year - in US$ billion | ||||||||||
Year | 2018 | 2017 | 2016 | 2015 | 2014 | |||||
CAPEX | $ 0.7 | $ 1.4 | $ 2.8 | $ 1.9 | $ 1.4 | |||||
|
2019 CAPEX Plan
8" | 12" | Total | ||
25% | 75% | US$1.0 billion |
CAPEX spending in 1Q19 was US$186 million. Full year 2019 CAPEX is budgeted for US$1.0 billion.
Second Quarter of 2019 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To increase by 6-7%
- ASP in USD: To increase by 3%
- Profitability: Gross profit margin will be in the low teens % range
- Foundry Segment Capacity Utilization: mid-80% range
- 2019 CAPEX for Foundry Segment: US$1.0 billion
Recent Developments / Announcements
Mar. 6, 2019
UMC Board of Directors Announces Proposals for its Annual Shareholders Meeting
Jan. 29, 2019
Please visit UMC’s website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, April 24, 2019
Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)
Dial-in numbers and Access Codes:
USA Toll Free: 1-866 836-0101
Taiwan Number: 02-2192-8016
Other Areas: +886-2-2192-8016
Access Code: UMC
A live webcast and replay of the 1Q19 results announcement will be available at
www.umc.com under the “Investors / Events” section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced IC production for applications spanning every major sector of the electronics industry. UMC’s comprehensive foundry solutions enable chip designers to leverage the company’s sophisticated technology and manufacturing, which include world-class 28nm High-K/Metal Gate technology, 14nm FinFET volume production, specialty process platforms specifically developed for AI, 5G and IoT applications and the automotive industry’s highest-rated AEC-Q100 Grade-0 manufacturing capabilities for the production of ICs found in vehicles. UMC’s 11 wafer fabs are strategically located throughout Asia and are able to produce over 600,000 wafers per month. The company employs more than 20,000 people worldwide, with offices in Taiwan, China, Europe, Japan, Korea, Singapore, 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 introduction of new services and technologies, future outsourcing, competition, wafer capacity, 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 regarding these and other risks is included in UMC’s filings with the U.S. Securities and Exchange Commission. 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.
Safe Harbor Statements
This release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States 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) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) 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 natural disasters, 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 United States Securities and Exchange Commission. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and 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 prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States.
This release 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 AND SUBSIDIARIES | |||||||
Consolidated Condensed Balance Sheet | |||||||
As of March 31, 2019 | |||||||
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||
March 31, 2019 | |||||||
US$ | NT$ | % | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | 2,880 | 88,738 | 23.7% | ||||
Financial assets at fair value through profit or loss, current | 18 | 552 | 0.2% | ||||
Notes & Accounts receivable, net | 746 | 22,992 | 6.1% | ||||
Inventories, net | 613 | 18,874 | 5.1% | ||||
Other current assets | 507 | 15,640 | 4.1% | ||||
Total current assets | 4,764 | 146,796 | 39.2% | ||||
Non-current assets | |||||||
Funds and investments | 1,209 | 37,255 | 10.0% | ||||
Property, plant and equipment | 5,447 | 167,823 | 44.9% | ||||
Right-of-use assets | 277 | 8,548 | 2.3% | ||||
Other non-current assets | 446 | 13,716 | 3.6% | ||||
Total non-current assets | 7,379 | 227,342 | 60.8% | ||||
Total assets | 12,143 | 374,138 | 100.0% | ||||
Liabilities | |||||||
Current liabilities | |||||||
Short-term loans | 545 | 16,798 | 4.5% | ||||
Payables | 728 | 22,417 | 6.0% | ||||
Current portion of long-term liabilities | 213 | 6,553 | 1.8% | ||||
Other current liabilities | 222 | 6,877 | 1.8% | ||||
Total current liabilities | 1,708 | 52,645 | 14.1% | ||||
Non-current liabilities | |||||||
Bonds payable | 1,184 | 36,471 | 9.8% | ||||
Long-term loans | 925 | 28,505 | 7.6% | ||||
Lease liabilities, noncurrent | 180 | 5,539 | 1.5% | ||||
Other non-current liabilities | 1,336 | 41,164 | 10.9% | ||||
Total non-current liabilities | 3,625 | 111,679 | 29.8% | ||||
Total liabilities | 5,333 | 164,324 | 43.9% | ||||
Equity | |||||||
Equity attributable to the parent company | |||||||
Capital | 3,935 | 121,243 | 32.4% | ||||
Additional paid-in capital | 1,304 | 40,164 | 10.8% | ||||
Retained earnings, exchange differences on translation of
assets measured at fair value through other comprehensive
|
1,638 | 50,470 | 13.5% | ||||
Treasury stock | (82) | (2,516) | (0.7%) | ||||
Total equity attributable to the parent company | 6,795 | 209,361 | 56.0% | ||||
Non-controlling interests | 15 | 453 | 0.1% | ||||
Total equity | 6,810 | 209,814 | 56.1% | ||||
Total liabilities and equity | 12,143 | 374,138 | 100.0% | ||||
Note:New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2019 exchange rate of NT $30.81 per U.S. Dollar. | |||||||
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
Consolidated Condensed Statements of Comprehensive Income |
||||||||||||||||||||
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||||||||||||||||||
Except Per Share and Per ADS Data | ||||||||||||||||||||
Year over Year Comparison | Quarter over Quarter Comparison | |||||||||||||||||||
Three-Month Period Ended | Three-Month Period Ended | |||||||||||||||||||
March 31, 2019 | March 31, 2018 | Chg. | March 31, 2019 | December 31, 2018 | Chg. | |||||||||||||||
US$ | NT$ | US$ | NT$ | % | US$ | NT$ | US$ | NT$ | % | |||||||||||
Operating revenues | 1,058 | 32,583 | 1,217 | 37,497 | (13.1%) | 1,058 | 32,583 | 1,153 | 35,517 | (8.3%) | ||||||||||
Operating costs | (985) | (30,321) | (1,066) | (32,855) | (7.7%) | (985) | (30,321) | (1,004) | (30,916) | (1.9%) | ||||||||||
Gross profit | 73 | 2,262 | 151 | 4,642 | (51.3%) | 73 | 2,262 | 149 | 4,601 | (50.8%) | ||||||||||
6.9% | 6.9% | 12.4% | 12.4% | 6.9% | 6.9% | 13.0% | 13.0% | |||||||||||||
Operating expenses | ||||||||||||||||||||
- Sales and marketing expenses | (29) | (889) | (30) | (909) | (2.2%) | (29) | (889) | (29) | (903) | (1.6%) | ||||||||||
- General and administrative expenses | (40) | (1,236) | (33) | (1,017) | 21.5% | (40) | (1,236) | (43) | (1,339) | (7.7%) | ||||||||||
- Research and development expenses | (91) | (2,807) | (95) | (2,924) | (4.0%) | (91) | (2,807) | (122) | (3,745) | (25.0%) | ||||||||||
- Expected credit losses | - | - | - | - | - | - | - | (13) | (409) | (100.0%) | ||||||||||
Subtotal | (160) | (4,932) | (158) | (4,850) | 1.7% | (160) | (4,932) | (207) | (6,396) | (22.9%) | ||||||||||
Net other operating income and expenses | 35 | 1,073 | 32 | 977 | 9.8% | 35 | 1,073 | 39 | 1,206 | (11.0%) | ||||||||||
Operating income (loss) | (52) | (1,597) | 25 | 769 | - | (52) | (1,597) | (19) | (589) | 171.3% | ||||||||||
(4.9%) | (4.9%) | 2.1% | 2.1% | (4.9%) | (4.9%) | (1.7%) | (1.7%) | |||||||||||||
Net non-operating income and expenses | 41 | 1,247 | 35 | 1,088 | 14.6% | 41 | 1,247 | (65) | (1,998) | - | ||||||||||
Income (loss) from continuing operations
|
(11) | (350) | 60 | 1,857 | - | (11) | (350) | (84) | (2,587) | (86.5%) | ||||||||||
(1.1%) | (1.1%) | 5.0% | 5.0% | (1.1%) | (1.1%) | (7.3%) | (7.3%) | |||||||||||||
Income tax benefit (expense) | 14 | 443 | 38 | 1,173 | (62.3%) | 14 | 443 | (13) | (413) | - | ||||||||||
Net income (loss) | 3 | 93 | 98 | 3,030 | (96.9%) | 3 | 93 | (97) | (3,000) | - | ||||||||||
0.3% | 0.3% | 8.1% | 8.1% | 0.3% | 0.3% | (8.4%) | (8.4%) | |||||||||||||
Other comprehensive income (loss) | 117 | 3,614 | (7) | (234) | - | 117 | 3,614 | 3 | 110 | 3,185.5% | ||||||||||
Total comprehensive income (loss) | 120 | 3,707 | 91 | 2,796 | 32.6% | 120 | 3,707 | (94) | (2,890) | - | ||||||||||
Net income (loss) attributable to: | ||||||||||||||||||||
Stockholders of the parent | 39 | 1,201 | 110 | 3,400 | (64.7%) | 39 | 1,201 | (55) | (1,707) | - | ||||||||||
Non-controlling interests | (36) | (1,108) | (12) | (370) | 199.0% | (36) | (1,108) | (42) | (1,293) | (14.3%) | ||||||||||
Comprehensive income (loss) attributable to: | ||||||||||||||||||||
Stockholders of the parent | 156 | 4,813 | 102 | 3,158 | 52.4% | 156 | 4,813 | (52) | (1,608) | - | ||||||||||
Non-controlling interests | (36) | (1,106) | (11) | (362) | 205.5% | (36) | (1,106) | (42) | (1,282) | (13.7%) | ||||||||||
Earnings per share-basic | 0.003 | 0.10 | 0.009 | 0.28 | 0.003 | 0.10 | (0.005) | (0.14) | ||||||||||||
Earnings per ADS (2) | 0.016 | 0.50 | 0.045 | 1.40 | 0.016 | 0.50 | (0.023) | (0.70) | ||||||||||||
Weighted average number of shares
|
11,909 | 12,203 | 11,909 | 12,112 |
Notes: | |
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2019 exchange rate of NT $30.81 per U.S. Dollar. | |
(2) 1 ADS equals 5 common shares. | |
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||||||||||
Consolidated Condensed Statements of Comprehensive Income | ||||||||||||
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||||||||||
Except Per Share and Per ADS Data | ||||||||||||
For the Three-Month Period Ended | For the Three-Month Period Ended | |||||||||||
March 31, 2019 | March 31, 2019 | |||||||||||
US$ | NT$ | % | US$ | NT$ | % | |||||||
Operating revenues | 1,058 | 32,583 | 100.0% | 1,058 | 32,583 | 100.0% | ||||||
Operating costs | (985) | (30,321) | (93.1%) | (985) | (30,321) | (93.1%) | ||||||
Gross profit | 73 | 2,262 | 6.9% | 73 | 2,262 | 6.9% | ||||||
Operating expenses | ||||||||||||
- Sales and marketing expenses | (29) | (889) | (2.7%) | (29) | (889) | (2.7%) | ||||||
- General and administrative expenses | (40) | (1,236) | (3.8%) | (40) | (1,236) | (3.8%) | ||||||
- Research and development expenses | (91) | (2,807) | (8.6%) | (91) | (2,807) | (8.6%) | ||||||
Subtotal | (160) | (4,932) | (15.1%) | (160) | (4,932) | (15.1%) | ||||||
Net other operating income and expenses | 35 | 1,073 | 3.3% | 35 | 1,073 | 3.3% | ||||||
Operating loss | (52) | (1,597) | (4.9%) | (52) | (1,597) | (4.9%) | ||||||
Net non-operating income and expenses | 41 | 1,247 | 3.8% | 41 | 1,247 | 3.8% | ||||||
Loss from continuing operations
before income tax |
(11) | (350) | (1.1%) | (11) | (350) | (1.1%) | ||||||
Income tax benefit | 14 | 443 | 1.4% | 14 | 443 | 1.4% | ||||||
Net income | 3 | 93 | 0.3% | 3 | 93 | 0.3% | ||||||
Other comprehensive income (loss) | 117 | 3,614 | 11.1% | 117 | 3,614 | 11.1% | ||||||
Total comprehensive income (loss) | 120 | 3,707 | 11.4% | 120 | 3,707 | 11.4% | ||||||
Net income (loss) attributable to: | ||||||||||||
Stockholders of the parent | 39 | 1,201 | 3.7% | 39 | 1,201 | 3.7% | ||||||
Non-controlling interests | (36) | (1,108) | (3.4%) | (36) | (1,108) | (3.4%) | ||||||
Comprehensive income (loss) attributable to: | ||||||||||||
Stockholders of the parent | 156 | 4,813 | 14.8% | 156 | 4,813 | 14.8% | ||||||
Non-controlling interests | (36) | (1,106) | (3.4%) | (36) | (1,106) | (3.4%) | ||||||
Earnings per share-basic | 0.003 | 0.10 | 0.003 | 0.10 | ||||||||
Earnings per ADS (2) | 0.016 | 0.50 | 0.016 | 0.50 | ||||||||
Weighted average number of shares
outstanding (in millions) |
11,909 | 11,909 | ||||||||||
Notes: | ||||||||||||
(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2019 exchange rate of NT $30.81 per U.S. Dollar. | ||||||||||||
(2) 1 ADS equals 5 common shares. | ||||||||||||
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||
Consolidated Condensed Statement of Cash Flows | |||
For The Three-Month Period Ended March 31, 2019 | |||
Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||
US$ | NT$ | ||
Cash flows from operating activities : | |||
Net loss before tax | (11) | (350) | |
Depreciation & Amortization | 402 | 12,380 | |
Net gain of financial assets and liabilities at fair value through profit or loss | (33) | (1,032) | |
Exchange gain on financial assets and liabilities | (18) | (554) | |
Changes in notes & accounts receivable | 27 | 831 | |
Changes in other payables | (33) | (1,020) | |
Changes in assets, liabilities and others | (68) | (2,072) | |
Net cash provided by operating activities | 266 | 8,183 | |
Cash flows from investing activities : | |||
Acquisition of property, plant and equipment | (181) | (5,563) | |
Acquisition of intangible assets | (17) | (530) | |
Others | 14 | 410 | |
Net cash used in investing activities | (184) | (5,683) | |
Cash flows from financing activities : | |||
Increase in short-term loans | 113 | 3,467 | |
Proceeds from long-term loans | 24 | 748 | |
Repayments of long-term loans | (57) | (1,752) | |
Treasury stock acquired | (11) | (331) | |
Others | 2 | 48 | |
Net cash provided by financing activities | 71 | 2,180 | |
Effect of exchange rate changes on cash and cash equivalents | 12 | 396 | |
Net increase in cash and cash equivalents | 165 | 5,076 | |
Cash and cash equivalents at beginning of period | 2,715 | 83,662 | |
Cash and cash equivalents at end of period | 2,880 | 88,738 | |
Note: New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2019 exchange rate of NT $30.81 per U.S. Dollar. | |||
1 Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending March 31, 2019, the three-month period ending December 31, 2018, and the equivalent three-month period that ended March 31, 2018. For all 1Q19 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the March 31, 2019 exchange rate of NT$ 30.81 per U.S. Dollar.
2 Revenue in this section represents wafer sales
3 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
4 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190424005432/en/
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UMC, Investor Relations
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