Please visit UMC's website http://www.umc.com/english/news/index.asp for further details regarding the above announcements.
Third Quarter of 2007 Outlook & Guidance
Quarter-over-quarter Guidance:
-- Wafer shipments: to increase by approximately 20% points
-- Wafer ASP in US$: flat from the previous quarter
-- Capacity utilization rate: approximately 90%
-- Profitability: gross profit margin to improve by approximately 5%
points
-- Percentage of 90nm & below revenue: approximately 25%
-- The communication segment is expected to be the strongest followed by
the computer and consumer segments
-- 2007 capex budget: US$1.0-1.2 billion
Conference Call / Webcast Announcement
Wednesday, August 1, 2007
Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)
Dial-in numbers and Access Codes:
Asia/Europe: +1-617-213-8058
North America: 866-578-5801
Access Code: UMCCall
A live webcast and replay of the 2Q07 results announcement will be available at 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 process ICs for applications spanning every major sector of the semiconductor industry. UMC delivers cutting-edge foundry technologies that enable sophisticated system-on-chip (SoC) designs, including volume production 90nm, industry-leading 65nm, and mixed signal/RFCMOS. UMC's 10 wafer manufacturing facilities 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 a thttp://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, 2006 filed with the U.S. Securities and Exchange Commission on May 9, 2007.
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 39 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, 2007
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
June 30, 2007
US$ NT$ %
ASSETS
Current Assets
Cash and Cash Equivalents 2,345 77,058 21.7%
Financial assets at fair value
through profit or loss, current 237 7,797 2.2%
Notes & Accounts Receivable 431 14,154 4.0%
Inventories 332 10,911 3.0%
Other Current Assets 116 3,810 1.1%
Total Current Assets 3,461 113,730 32.0%
Non-Current Assets
Funds and Long-term Investments 2,758 90,626 25.5%
Property, Plant and Equipment 4,282 140,715 39.6%
Intangible Assets 114 3,745 1.0%
Other Assets 205 6,738 1.9%
Total Non-Current Assets 7,359 241,824 68.0%
TOTAL ASSETS 10,820 355,554 100.0%
LIABILITIES
Current Liabilities
Financial liabilities at fair
value through profit or loss,
current 13 423 0.1%
Payables 562 18,468 5.2%
Dividends payable 379 12,462 3.5%
Current Portion of Long-term
Liabilities 701 23,023 6.5%
Other Current Liabilities 16 544 0.2%
Total Current Liabilities 1,671 54,920 15.5%
Non-Current Liabilities
Bonds Payable 228 7,495 2.1%
Other Liabilities 110 3,594 1.0%
Total Non-Current Liabilities 338 11,089 3.1%
TOTAL LIABILITIES 2,009 66,009 18.6%
STOCKHOLDERS' EQUITY
Capital Stock 5,826 191,443 53.8%
Additional Paid-in Capital 2,062 67,772 19.1%
Retained Earnings, Unrealized Gain
on Financial Assets and
Translation Adjustment 1,818 59,725 16.8%
Treasury Stock (895) (29,395) -8.3%
TOTAL STOCKHOLDERS' EQUITY 8,811 289,545 81.4%
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 10,820 355,554 100.0%
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2007 exchange rate of NT$32.86 per U.S. Dollar.
All figures are in ROC GAAP.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison
Three-Month Period Ended
June 30, 2007 June 30, 2006 %
US$ NT$ US$ NT$ Chg.
Net Sales 764 25,097 783 25,751 -2.5%
Cost of Goods Sold (613) (20,139) (626) (20,580) -2.1%
Net Gross Profit 151 4,958 157 5,171 -4.1%
19.8% 19.8% 20.1% 20.1% --
Operating Expenses
- Sales & Marketing 23 732 23 761 -3.8%
- General & Administrative 21 691 20 676 2.2%
- Research & Development 70 2,309 64 2,104 9.7%
114 3,732 107 3,541 5.4%
Operating Income (Loss) 37 1,226 50 1,630 -24.8%
4.9% 4.9% 6.3% 6.3% --
Net Non-Operating Income
(Expenses) 127 4,182 154 5,076 -17.6%
Income (Loss) from continuing
operations before income tax 164 5,408 204 6,706 -19.3%
21.6% 21.6% 26.0% 26.0% --
Income Tax (Expense) Benefit (15) (497) (20) (654) -24.0%
Net Income (Loss) 149 4,911 184 6,052 -18.9%
19.6% 19.6% 23.5% 23.5% --
Earnings per Share 0.009 0.28 0.010 0.34 --
Earnings per ADS (2) 0.043 1.40 0.052 1.70 --
Weighted Average Number of Shares
Outstanding (in millions) -- 17,780 -- 17,469 --
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
June 30, 2007 March 31, 2007 %
US$ NT$ US$ NT$ Chg.
Net Sales 764 25,097 701 23,025 9.0%
Cost of Goods Sold (613) (20,139) (589) (19,349) 4.1%
Net Gross Profit 151 4,958 112 3,676 34.9%
19.8% 19.8% 16.0% 16.0% --
Operating Expenses
- Sales & Marketing 23 732 20 650 12.6%
- General & Administrative 21 691 20 678 1.9%
- Research & Development 70 2,309 71 2,330 -0.9%
114 3,732 111 3,658 2.0%
Operating Income (Loss) 37 1,226 1 18 6711.1%
4.9% 4.9% 0.1% 0.1% --
Net Non-Operating Income
(Expenses) 127 4,182 52 1,719 143.3%
Income (Loss) from continuing
operations before income tax 164 5,408 53 1,737 211.3%
21.6% 21.6% 7.5% 7.5% --
Income Tax (Expense) Benefit (15) (497) (9) (278) 78.8%
Net Income (Loss) 149 4,911 44 1,459 236.6%
19.6% 19.6% 6.3% 6.3% --
Earnings per Share 0.009 0.28 0.002 0.08 --
Earnings per ADS (2) 0.043 1.40 0.012 0.40 --
Weighted Average Number of Shares
Outstanding (in millions) -- 17,780 -- 17,776 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2007 exchange rate of NT$32.86 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month
Period Ended For the year Ended
June 30, 2007 June 30, 2007
US$ NT$ % US$ NT$ %
Net Sales 764 25,097 100.0% 1,465 48,122 100.0%
Cost of Goods Sold (613) (20,139) -80.2% (1,202) (39,488) -82.1%
Net Gross Profit 151 4,958 19.8% 263 8,634 17.9%
Operating Expenses
- Sales & Marketing 23 732 2.9% (42) (1,382) -2.9%
- General &
Administrative 21 691 2.8% (42) (1,369) -2.8%
- Research &
Development 70 2,309 9.2% (141) (4,639) -9.6%
114 3,732 14.9% (225) (7,390) -15.3%
Operating Income (Loss) 37 1,226 4.9% 38 1,244 2.6%
Net Non-Operating Income
(Expenses) 127 4,182 16.7% 179 5,901 12.2%
Income (Loss) from
continuing operations
before income tax 164 5,408 21.6% 217 7,145 14.8%
Income Tax (Expense)
Benefit (15) (497) -2.0% (23) (775) -1.6%
Net Income (Loss) 149 4,911 19.6% 194 6,370 13.2%
Earnings per Share 0.009 0.28 -- 0.011 0.36 --
Earnings per ADS (2) 0.043 1.40 -- 0.055 1.80 --
Weighted Average Number
of Shares
Outstanding (in millions) -- 17,780 -- -- 17,778 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June
30, 2007 exchange rate of NT$32.86 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Statement of Cash Flows
For The Six Months Ended June 30, 2007
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
Cash flows from operating activities:
Net Income 194 6,370
Depreciation & Amortization 560 18,404
Bed debts reversal (0) (1)
Gain on recovery in market value
and obsolesence of inventories (2) (58)
Cash dividends received under the
equity method 11 354
Investment gain accounted for
under the equity method (34) (1,131)
Loss on valuation of financial
assets and liabilities 4 115
Impairment loss 7 246
Gain on disposal of investments (130) (4,258)
Gain on disposal of property,
plant and equipment (1) (17)
Exchange loss on financial assets
and liabilities 0 2
Exchange loss on long-term
liabilities 9 284
Amortization of bond discounts 1 35
Amortization of deferred income (2) (72)
Change in assets and liabilities (90) (2,958)
Net cash provided from operating
activities 527 17,315
Cash flows from investing activities:
Acquisition of available-for-
sales financial assets (6) (199)
Proceeds from disposal of
available-for-sales financial
assets 15 498
Proceeds from disposal of held-
to-maturity financial assets 24 776
Acquisition of financial assets
measured at cost (4) (120)
Acquisition of long-term
investments accounted for the
equity method (15) (494)
Proceeds from disposal of long-
term investments accounted for
the equity method 5 170
Prepaid investment (7) (248)
Proceeds from liquid of long-term
investment 0 11
Acquisition of property, plant
and equipment (654) (21,495)
Proceeds from disposal of
property, plant and equipment 7 236
Increase in deferred charges (19) (617)
Decrease in other assets - others 1 23
Net cash used in investing activities (653) (21,459)
Cash flows from financing activities:
Redemption of bonds (69) (2,260)
Exercise of employee stock options 6 187
Decrease in deposits-in (0) (1)
Net cash used in financing activities (63) (2,074)
Effect of exchange rate changes on
cash and cash equivalents (4) (119)
Decrease in cash and cash equivalents (193) (6,337)
Cash and cash equivalents at
beginning of period 2,538 83,395
Cash and cash equivalents at end of
period 2,345 77,058
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2007 exchange rate of NT$ 32.86 per U.S. Dollar.
All figures are in ROC GAAP.
Contacts:
Bowen Huang / Dylan Lee
UMC, Investor Relations
Tel: +886-2-2700-6999 ext. 6957
Email:
Email Contact
Email Contact
Web site: http://www.umc.com/
