Year-over-year, first quarter revenue decreased 54.8% while net income and diluted EPS decreased 94.5% and 94.4%, respectively. Compared to fourth quarter of 2008, first quarter results represent a 38.8% decrease in revenue, and a decrease of 87.5% in net income and in diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.
As a result of deepening economic recession worldwide and customers' inventory adjustment, first quarter saw a sharp decline in the demand for semiconductors across all applications. Gross margin for the quarter was 18.9%, operating margin was 3.1%, and net margin was 3.9%.
Advanced process technologies (0.13-micron and below) accounted for 65% of wafer revenues with 90-nanometer process technology accounting for 25%, 65- nanometer 23%, and 45/40 nanometer reaching 1% of total wafer sales.
"Although global economic conditions continue to decline, a few signs of economic stabilization began to emerge. Consumption of electronics in the last two quarters exceeded production and surpassed semiconductor companies' low expectations. Meanwhile, companies began to launch new products, while China started implementing various stimulus programs. The dynamic has resulted in a substantial increase in order levels. After sharp declines in two consecutive quarters, TSMC is seeing a strong rebound in its second quarter business and believes overall business in the second half of 2009 will be considerably better than that of the first half," said Lora Ho, VP and Chief Financial Officer of TSMC. "Based on our current business outlook, management expects overall performance for second quarter 2009 to be as follows":
-- Revenue is expected to be between NT$71 billion and NT$74 billion;
-- Gross profit margin is expected to be between 43.5% and 45.5%;
-- Operating profit margin is expected to be between 30.5% and 32.5%.
The management further expects that 2009 capital expenditure will be around US$1.5 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, April 30, 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 1-617-213-8837 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 1Q09 Quarterly Management Report April 30, 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) 1Q09 4Q08 1Q08 QoQ YoY
EPS (NT$ per common share) 0.06 0.48 1.08 (87.5%) (94.4%)
(US$ per ADR unit) 0.01 0.07 0.17 -- --
Consolidated Net Sales 39.50 64.56 87.48 (38.8%) (54.8%)
Gross Profit 7.48 20.19 38.24 (63.0%) (80.4%)
Gross Margin 18.9% 31.3% 43.7% -- --
Operating Expense (6.27) (8.17) (9.12) (23.3%) (31.2%)
Operating Income 1.21 12.02 29.12 (89.9%) (95.8%)
Operating Margin 3.1% 18.6% 33.3% -- --
Non-Operating Items (0.46) 1.07 2.45 -- --
Net Income 1.56 12.45 28.14 (87.5%) (94.5%)
Net Profit Margin 3.9% 19.3% 32.2% -- --
Wafer Shipment (kpcs 8 inch-equiv.) 892 1,532 2,196 (41.8%) (59.4%)
Note: Total outstanding shares were 25,626mn units on 3/31/09
Financial Highlights:
First Quarter 2009
-- Consolidated net sales were NT$39.50 billion, representing a 38.8%
sequential decline from 4Q08 and a 54.8% decline compared to 1Q08;
-- Gross margin was 18.9%, 12.4 percentage points lower than 4Q08 and 24.8
percentage points lower than 1Q08.
-- Operating margin was 3.1%, 15.5 percentage points lower than 4Q08 and
30.2 percentage points lower than 1Q08. Operating expenses were NT$6.27
billion, NT$1.90 billion lower than the previous quarter.
-- The combined result from non-operating income and long-term investment
losses was a loss of NT$0.46 billion, compared to a gain of NT$1.07
billion in 4Q08 and a gain of NT$2.45 billion in 1Q08;
-- Consolidated net income attributable to shareholders of the parent
company was NT$1.56 billion, with net profit margin of 3.9% and diluted
EPS of NT$0.06.
I. Revenue Analysis
I. Wafer Sales Analysis
By Application 1Q09 4Q08 1Q08
Computer 26% 32% 34%
Communication 46% 43% 42%
Consumer 21% 19% 17%
Industrial/Others 7% 6% 8%
By Technology 1Q09 4Q08 1Q08
45/40nm 1% 0% 0%
65nm 23% 27% 15%
90nm 25% 21% 28%
0.11/0.13um 16% 17% 20%
0.15/0.18um 21% 22% 23%
0.25/0.35um 11% 10% 10%
0.50um+ 3% 3% 4%
By Customer Type 1Q09 4Q08 1Q08
Fabless/System 77% 72% 71%
IDM 23% 28% 29%
By Geography 1Q09 4Q08 1Q08
North America 68% 72% 76%
Asia Pacific 14% 11% 11%
China 3% 2% 1%
Europe 12% 11% 9%
Japan 3% 4% 3%
Revenue Analysis:
Application-First quarter revenue was NT$39.50 billion, better than the revised guidance, primarily due to continued rush orders from customers especially from the mainland Chinese market. In 1Q09, demand continued to be weaker across all applications compared to 4Q08. On a sequential basis, revenues from computer, communication, and consumer applications decreased 53%, 36%, and 32%, respectively.
Technology-Revenue from 45/40nm reached 1% of total wafer sales in 1Q09. Meanwhile, revenue from 65nm and 90nm were 23% and 25% of total wafer sales, respectively. Overall, revenues from advanced technologies (0.13-micron and below) accounted for 65% of total wafer sales.
Customer-Revenues from IDM customers accounted for 23% of total wafer sales in 1Q09, lower than 28% in 4Q08, primarily due to increasing in-sourcing of those customers in the weak demand environment.
Geography-In 1Q09, revenues from customers based in North America accounted for 68% of total wafer sales, lower than 72% in 4Q08. Meanwhile, sales from customers in Asia Pacific, China, Europe, and Japan accounted for 14%, 3%, 12% and 3% of wafer sales, respectively.
II. Profit & Expense Analysis
II - 1. Gross Profit Analysis
(In NT billions) 1Q09 4Q08 1Q08
COGS 32.02 44.37 49.24
Depreciation 18.97 19.29 18.12
Other MFG Cost 13.05 25.08 31.12
Gross Profit 7.48 20.19 38.24
Gross Margin 18.9% 31.3% 43.7%
Gross Profit Analysis:
Gross margin in 1Q09 was 18.9%, down 12.4 percentage points from 4Q08, mainly driven by a sharp decline of production activities, partially balanced by cost improvement, a more favorable exchange rate, and less employee profit sharing expenses.
II - 2. Operating Expenses
(In NT billions) 1Q09 4Q08 1Q08
Total Operating Exp. 6.27 8.17 9.12
SG&A 2.54 3.34 3.85
Research & Development 3.73 4.83 5.27
Total Operating Exp. as a % of Sales 15.9% 12.7% 10.4%
Operating Expenses:
Total operating expenses for 1Q09 decreased to NT$6.27 billion, representing 15.9% of net sales, higher than 12.7% of net sales in 4Q08.
Research and development expenditures decreased by NT$1.10 billion sequentially, mainly due to lower level of employee profit sharing and less development expenses related to 40nm technologies.
SG&A expenses decreased by NT$0.80 billion from 4Q08 level. The decrease was mainly due to lower level of employee profit sharing and more stringent expense control.
II - 3. Non-Operating Items
(In NT billions) 1Q09 4Q08 1Q08
Non-Operating Inc./(Exp.) 0.35 1.41 1.87
Net Interest Income/(Exp.) 0.88 1.18 1.19
Other Non-Operating (0.53) 0.23 0.68
L-T Investments (0.81) (0.34) 0.58
SSMC (0.32) (0.07) 0.38
Others (0.49) (0.27) 0.20
Total Non-Operating Items (0.46) 1.07 2.45
Non-Operating Items:
For 1Q09, combined result from non-operating income and long-term investment losses was a net loss of NT$0.46 billion.
Non-operating income was NT$0.35 billion, lower than NT$1.41 billion in 4Q08, primarily due to less interest income, disposal and impairment losses of financial assets, and the absence of litigation compensation.
Net investment losses increased by NT$0.47 billion to NT$0.81 billion, mainly due to weaker business in VIS and SSMC.
III. Financial Condition Review
III - 1. Liquidity Analysis
(Selected Balance Sheet Items)
(In NT billions) 1Q09 4Q08 1Q08
Cash & Marketable Securities 229.79 211.45 210.31
Accounts Receivable - Trade 13.82 18.50 37.95
Inventory 14.78 14.88 21.89
Total Current Assets 268.56 252.62 281.46
Accounts Payable 10.97 14.04 22.59
Current Portion of Bonds Payable 0.00 8.00 8.00
Accrued Bonus to Employees,
Directors and Supervisors 15.64 15.37 4.37
Accrued Liabilities and Others 18.76 19.40 27.08
Total Current Liabilities 45.37 56.81 62.04
Current Ratio (x) 5.9 4.4 4.5
Net Working Capital 223.19 195.81 219.42
Liquidity Analysis:
At the end of 1Q09, total current assets increased by NT$ 15.94 billion to NT$268.56 billion, mainly contributed by the free cash flow of NT$21.17 billion (please refer to page 5) generated during this quarter.
Total current liabilities decreased by NT$11.44 billion in 1Q09, primarily resulting from the repayment of corporate bond and a decline in payables to contractors and equipment suppliers.
Net working capital was NT$223.19 billion and current ratio increased to 5.9x.
III - 2. Receivable/Inventory Days
(In Number of Days)
1Q09 4Q08 1Q08
Days of Receivable 38 46 43
Days of Inventory 44 40 46
Receivable and Inventory Days:
Sequentially, days of receivable decreased by eight days to 38 days in 1Q09, mainly due to a lower level of business activities.
Days of inventory increased by four days to 44 days, reflecting an improving business outlook for 2Q09.
III - 3. Debt Service
(In NT billions) 1Q09 4Q08 1Q08
Cash & Marketable Securities 229.79 211.45 210.31
Interest-Bearing Debt 16.00 23.44 22.88
Net Cash Reserves 213.79 188.01 187.43
Debt Service:
Net cash reserves -- defined as the excess of cash and short-term marketable securities over interest-bearing debt -- increased by NT$25.78 billion to NT$213.79 billion at the end of 1Q09, primarily due to free cash flow of NT$21.17 billion generated during this quarter.
IV. Cash Flow
IV - 1. Cash Flow Analysis
(In NT billions) 1Q09 4Q08 1Q08
Net Income 1.56 12.45 28.14
Depreciation & Amortization 20.48 20.96 19.83
Other Operating Sources/(Uses) 4.75 29.83 9.33
Total Operating Sources/(Uses) 26.79 63.24 57.30
Capital Expenditure (5.62) (11.26) (15.31)
Marketable Financial Instruments 13.80 30.31 12.91
Other Investing Sources/(Uses) (0.04) (1.04) (0.73)
Net Investing Sources/(Uses) 8.14 18.01 (3.13)
Repayment of Bonds Payable (8.00) 0.00 0.00
Purchase of Treasury Stock 0.00 0.00 (3.05)
Other Financing Sources/(Uses) 0.12 (0.30) (0.24)
Net Financing Sources/(Uses) (7.88) (0.30) (3.29)
Net Cash Position Changes 27.05 80.95 50.88
Exchange Rate Changes & Others 1.60 1.21 (1.59)
Ending Cash Balance 223.26 194.61 144.28
Summary of Cash Flow:
Cash generated from operating activities totaled NT$26.79 billion during 1Q09, down from NT$63.24 billion in 4Q08, mainly due to lower level of business activities.
Net cash generated from investing activities was NT$8.14 billion in 1Q09, reflecting capital expenditure of NT$5.62 billion and a net decrease of NT$13.80 billion in marketable financial instruments.
As a result, TSMC ended 1Q09 with a cash balance of NT$223.26 billion.
IV - 2. Operating and Free Cash Flows:
Cash flows generated from operating activities were NT$26.79 billion during the quarter. Free cash flow, defined as the excess of operating cash flows over capital expenditures, totaled NT$21.17 billion in 1Q09, compared to NT$51.98 billion in 4Q08.
Please refer to the link for the index charts: http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf
V. CapEx & Capacity
V - 1. Capital Expenditures
(In US millions) 1Q09 4Q08
TSMC 161 326
XinTec and GUC 2 2
TSMC Shanghai & WaferTech 3 12
Other TSMC Subsidiaries 0 2
Total TSMC 166 342
Capital Expenditures:
Capital expenditures for TSMC on a consolidated basis totaled US$166 million in 1Q09.
For year 2009, total capital expenditures for TSMC is expected to be around US$1.5 billion, compared with US$1.9 billion spent in 2008.
V-2 . Capacity
4Q08 1Q09 2Q09 3Q09 4Q09 2009
Fab / (Wafer size) (A) (A) (F) (F) (F) (F)
Fab-2 (6") Note 1 272 274 280 283 283 1,121
Fab-3 (8") 274 286 289 292 283 1,150
Fab-5 (8") 161 162 149 144 144 599
Fab-6 (8") 282 295 284 287 287 1,154
Fab-8 (8") 272 275 271 265 255 1,066
Fab-12 (12") Note 2 221 218 219 218 254 909
Fab-14 (12") Note 2 236 238 236 228 227 928
WaferTech (8") 106 106 107 109 109 431
TSMC China (8") 128 128 134 135 135 531
TSMC total capacity
(8" equiv. Kpcs) 2,405 2,431 2,414 2,394 2,455 9,695
SSMC (8") 73 64 65 65 65 259
Total managed capacity
(8" equiv. Kpcs) 2,478 2,495 2,479 2,460 2,520 9,954
Note: 1. Figures represent number of 6" wafers. Conversion to 8"-
Equivalent wafers is obtained by dividing this number by 1.78
2. Figures represent number of 12" wafers. Conversion to 8"-
equivalent wafers is obtained by multiplying this number by 2.25
Capacity:
Total managed capacity was 2,495K 8-inch equivalent wafers in the first quarter, increased by 0.7% from 2,478K in 4Q08.
Total managed capacity in 2009 is expected to reach 9,954K 8-inch equivalent wafers, representing an increase of 6% from 9,377K 8-inch equivalent wafers in 2008, while capacity for 12-inch wafer fabs is expected to increase by 11%, reaching 41.5% of total capacity.
VI. Recap of Recent Important Events & Announcements
-- TSMC Qualifies New 0.18-Micron Embedded Flash Family (2009/03/31)
-- Ciranova and TSMC Announce Strategic Partnership on Advanced PDK
Technology ( 2009/03/24)
-- Barron's Names Dr. Rick Tsai to its Most Respected CEO List
(2009/03/23)
-- Intel, TSMC Reach Agreement to Collaborate on Technology Platform,
IP Infrastructure, SoC Solutions (2009/03/02)
-- TSMC and Tela Innovations Announce Strategic Partnership to Enhance
Design and Process Co-Optimization (2009/02/24)
-- TSMC Board Proposes Dividend of NT$3.0 Cash and 0.5% Stock Per
Share (2009/02/10)
* Please visit TSMC's Web site (
www.tsmc.com ) for details about
these and other announcements.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD))(1)
March 31, 2009 December 31, 2008
(unaudited) (audited)
ASSETS USD NTD % NTD %
Current Assets
Cash and Cash Equivalents $6,583 $223,262 40.4 $194,614 34.8
Investments in Marketable
Financial Instruments 192 6,527 1.2 16,836 3.0
Accounts Receivable -
Trade, Net 408 13,822 2.5 18,497 3.3
Inventories, Net 436 14,775 2.7 14,877 2.7
Other Current Assets 299 10,171 1.8 7,795 1.4
Total Current Assets 7,918 268,557 48.6 252,619 45.2
Long-Term Investments 1,052 35,682 6.5 39,982 7.2
Property, Plant and Equipment 25,568 867,199 156.9 862,461 154.3
Less: Accumulated
Depreciation (18,873) (640,121) (115.8) (618,816) (110.7)
Property, Plant and
Equipment, Net 6,695 227,078 41.1 243,645 43.6
Other Assets 633 21,458 3.8 22,671 4.0
Total Assets $16,298 $552,775 100.0 $558,917 100.0
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities
Accounts Payable $172 $5,824 1.1 $6,043 1.1
Payables to Contractors and
Equipment Suppliers 152 5,145 0.9 7,999 1.4
Accrued Expenses and Other
Current Liabilities 1,006 34,120 6.1 34,543 6.2
Current Portion of Bonds
Payable and Long-Term
Liabilities 8 286 0.1 8,222 1.5
Total Current Liabilities 1,338 45,375 8.2 56,807 10.2
Bonds Payable 133 4,500 0.8 4,500 0.8
Other Long-Term Liabilities 518 17,587 3.2 17,237 3.1
Total Liabilities 1,989 67,462 12.2 78,544 14.1
Shareholders' Equity
Attributable to Shareholders
of the Parent
Capital Stock at Par Value 7,556 256,260 46.4 256,254 45.8
Capital Surplus 1,473 49,965 9.0 49,875 8.9
Legal Capital Reserve (2) 1,985 67,324 12.2 67,324 12.0
Special Capital Reserve (2) 12 392 0.1 392 0.1
Unappropriated Earnings (2) 3,063 103,896 18.8 102,338 18.3
Treasury Stock -- -- -- -- --
Others 109 3,710 0.6 194 0.1
Total Equity
Attributable to
Shareholders of the
Parent 14,198 481,547 87.1 476,377 85.2
Minority Interests 111 3,766 0.7 3,996 0.7
Total Shareholders'
Equity 14,309 485,313 87.8 480,373 85.9
Total Liabilities &
Shareholders' Equity $16,298 $552,775 100.0 $558,917 100.0
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD)) (1)
(Continued)
March 31, 2008
(unaudited) QoQ YoY
ASSETS NTD % Amount % Amount %
Current Assets
Cash and Cash
Equivalents $144,277 24.2 $28,648 14.7 $78,985 54.7
Investments in
Marketable
Financial
Instruments 66,034 11.1 (10,309) (61.2) (59,507) (90.1)
Accounts Receivable
- Trade, Net 37,950 6.3 (4,675) (25.3) (24,128) (63.6)
Inventories, Net 21,890 3.7 (102) (0.7) (7,115) (32.5)
Other Current Assets 11,304 1.9 2,376 30.5 (1,133) (10.0)
Total Current
Assets 281,455 47.2 15,938 6.3 (12,898) (4.6)
Long-Term Investments 33,693 5.6 (4,300) (10.8) 1,989 5.9
Property, Plant and
Equipment 817,464 136.9 4,738 0.5 49,735 6.1
Less: Accumulated
Depreciation (555,854) (93.1) (21,305) 3.4 (84,267) 15.2
Property, Plant
and Equipment,
Net 261,610 43.8 (16,567) (6.8) (34,532) (13.2)
Other Assets 20,285 3.4 (1,213) (5.4) 1,173 5.8
Total Assets $597,043 100.0 ($6,142) (1.1) ($44,268) (7.4)
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $10,338 1.7 ($219) (3.6) ($4,514) (43.7)
Payables to
Contractors and
Equipment Suppliers 12,256 2.1 (2,854) (35.7) (7,111) (58.0)
Accrued Expenses and
Other Current
Liabilities 31,162 5.2 (423) (1.2) 2,958 9.5
Current Portion of
Bonds Payable and
Long-Term
Liabilities 8,280 1.4 (7,936) (96.5) (7,994) (96.5)
Total Current
Liabilities 62,036 10.4 (11,432) (20.1) (16,661) (26.9)
Bonds Payable 4,500 0.8 -- -- -- --
Other Long-Term
Liabilities 17,537 2.9 350 2.0 50 0.3
Total Liabilities 84,073 14.1 (11,082) (14.1) (16,611) (19.8)
Shareholders' Equity
Attributable to
Shareholders of the
Parent
Capital Stock at Par
Value 256,292 42.9 6 0.0 (32) (0.0)
Capital Surplus 51,696 8.7 90 0.2 (1,731) (3.3)
Legal Capital
Reserve (2) 56,406 9.4 -- -- 10,918 19.4
Special Capital
Reserve (2) 630 0.1 -- -- (238) (37.8)
Unappropriated
Earnings (2) 151,597 25.4 1,558 1.5 (47,701) (31.5)
Treasury Stock (918) (0.2) -- -- 918 (100.0)
Others (6,410) (1.0) 3,516 1813.8 10,120 (157.9)
Total Equity
Attributable to
Shareholders of
the Parent 509,293 85.3 5,170 1.1 (27,746) (5.4)
Minority Interests 3,677 0.6 (230) (5.7) 89 2.4
Total
Shareholders'
Equity 512,970 85.9 4,940 1.0 (27,657) (5.4)
Total Liabilities &
Shareholders' Equity $597,043 100.0 ($6,142) (1.1) ($44,268) (7.4)
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars
at the rate of NT$33.917 as of March 31, 2009.
(2) Certain prior period balances have been reclassified to conform to
the current period presentation.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended March 31, 2009, December 31, 2008, and
March 31, 2008
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1)
Except for Per Share Amounts and Shares Outstanding)
1Q 2009 4Q 2008
USD NTD % NTD %
Net Sales $1,164 $39,500 100.0 $64,562 100.0
Cost of Sales (943) (32,020) (81.1) (44,367) (68.7)
Gross Profit 221 7,480 18.9 20,195 31.3
Operating Expenses
Research and Development
Expenses (110) (3,729) (9.4) (4,826) (7.5)
General and Administrative
Expenses (47) (1,595) (4.0) (2,285) (3.5)
Sales and Marketing Expenses (28) (947) (2.4) (1,062) (1.7)
Total Operating Expenses (185) (6,271) (15.9) (8,173) (12.7)
Income from Operations 36 1,209 3.1 12,022 18.6
Non-Operating Income, Net 10 353 0.9 1,412 2.2
Investment Gains (Loss) (24) (813) (2.1) (340) (0.5)
Income before Income Tax 22 749 1.9 13,094 20.3
Income Tax Benefits (Expenses) 22 739 1.9 (452) (0.7)
Net Income 44 1,488 3.8 12,642 19.6
Minority Interests 2 71 0.1 (196) (0.3)
Net Income Attributable to
Shareholders of
the Parent 46 1,559 3.9 12,446 19.3
Earnings per Share - Diluted $0.00 $0.06 -- $0.48 --
Earnings per ADR - Diluted (2) $0.01 $0.30 -- $2.42 --
Weighted Average Outstanding
Shares - Diluted ('M) (3) -- 25,792 -- 25,655 --
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended March 31, 2009, December 31, 2008, and
March 31, 2008
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1)
Except for Per Share Amounts and Shares Outstanding)
(Continued)
1Q 2008 QoQ YoY
NTD % Amount % Amount %
Net Sales $87,480 100.0 ($25,062) (38.8) ($47,980) (54.8)
Cost of Sales (49,241) (56.3) 12,347 (27.8) 17,221 (35.0)
Gross Profit 38,239 43.7 (12,715) (63.0) (30,759) (80.4)
Operating Expenses
Research and
Development
Expenses (5,270) (6.0) 1,097 (22.7) 1,541 (29.2)
General and
Administrative
Expenses (2,662) (3.0) 690 (30.2) 1,067 (40.1)
Sales and Marketing
Expenses (1,184) (1.4) 115 (10.8) 237 (20.0)
Total Operating
Expenses (9,116) (10.4) 1,902 (23.3) 2,845 (31.2)
Income from
Operations 29,123 33.3 (10,813) (89.9) (27,914) (95.8)
Non-Operating Income,
Net 1,872 2.1 (1,059) (75.1) (1,519) (81.2)
Investment Gains
(Loss) 577 0.7 (473) 138.6 (1,390) (240.7)
Income before Income
Tax 31,572 36.1 (12,345) (94.3) (30,823) (97.6)
Income Tax Benefits
(Expenses) (3,336) (3.8) 1,191 (263.5) 4,075 (122.2)
Net Income 28,236 32.3 (11,154) (88.2) (26,748) (94.7)
Minority Interests (93) (0.1) 267 (136.3) 164 (176.8)
Net Income
Attributable to
Shareholders of
the Parent 28,143 32.2 (10,887) (87.5) (26,584) (94.5)
Earnings per Share -
Diluted $1.08 -- ($0.42) (87.5) ($1.02) (94.4)
Earnings per ADR -
Diluted (2) $5.38 -- ($2.12) (87.5) ($5.08) (94.4)
Weighted Average
Outstanding Shares -
Diluted ('M) (3) 26,167 -- -- -- -- --
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S.
dollars at the weighted average rate of NTD 33.922 for the first
quarter of 2009.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 26,167M
shares for 1Q08 after the retroactive adjustments for stock dividends
and stock bonus.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
For The Three Months Ended March 31, 2009, December 31, 2008, and
March 31, 2008
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD))(1)
1Q 2009 4Q 2008 1Q 2008
(unaudited)(unaudited)(unaudited)
USD NTD NTD NTD
Cash Flows from Operating
Activities:
Net Income $46 $1,559 $12,446 $28,143
Net Income (Loss) Attributable
to Minority Interest (2) (71) 196 93
Depreciation & Amortization 604 20,483 20,961 19,831
Deferred Income Tax (41) (1,394) 154 435
Equity in Loss (Earnings) of
Equity Method Investees, Net 24 813 340 (577)
Changes in Working Capital &
Others 159 5,398 29,147 9,370
Net Cash Provided by Operating
Activities 790 26,788 63,244 57,295
Cash Flows from Investing
Activities:
Acquisitions of:
Marketable Financial
Instruments (273) (9,251) (33,059) (13,902)
Investments Accounted for
Using Equity Method -- -- (1) --
Property, Plant and Equipment (166) (5,617) (11,258) (15,313)
Financial Assets Carried at
Cost (2) (83) (73) (213)
Proceeds from Disposal or
Maturity of:
Marketable Financial
Instruments 680 23,053 63,368 26,816
Property, Plant and Equipment -- 2 24 1
Financial Assets Carried at
Cost -- -- 73 93
Others 1 32 (1,061) (607)
Net Cash Provided by (Used In)
Investing Activities 240 8,136 18,013 (3,125)
Cash Flows from Financing
Activities:
Decrease in Guarantee Deposits (5) (165) (140) (371)
Proceeds from Exercise of Stock
Options -- 15 5 81
Repayment of Long-Term Bonds
Payable (236) (8,000) -- --
Repurchase of Treasury Stock -- -- -- (3,054)
Others 9 275 (163) 58
Net Cash Used in Financing
Activities (232) (7,875) (298) (3,286)
Net Increase in Cash and Cash
Equivalents 798 27,049 80,959 50,884
Effect of Exchange Rate Changes and
Others 47 1,599 1,209 (1,593)
Cash and Cash Equivalents at
Beginning of Period 5,737 194,614 112,446 94,986
Cash and Cash Equivalents at End of
Period $6,582 $223,262 $194,614 $144,277
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S.
dollars at the weighted average rate of NTD33.922 for the three
months ended March 31, 2009.
Safe Harbor Notice:
The statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. TSMC cautions readers that forward-looking statements are subject to significant risks and uncertainties and are based on TSMC's current expectations. Actual results may differ materially from those contained in such forward-looking statements for a variety of reasons including, among others, risks associated with cyclicality and market conditions in the semiconductor industry; demand and supply for TSMC's foundry manufacturing capacity in particular and for foundry manufacturing capacity in general; intense competition; the failure of one or more significant customers to continue to place the same level of orders with us; TSMC's ability to remain a technological leader in the semiconductor industry; TSMC's ability to manage its capacity; TSMC's ability to obtain, preserve and defend its intellectual property rights; natural disasters and other unexpected events which may disrupt production; and exchange rate fluctuations. Additional information as to these and other risk factors that may cause TSMC's actual results to differ materially from TSMC's forward-looking statements may be found in TSMC's Annual Report on Form 20-F, filed with the United States Securities and Exchange Commission (the "SEC") on April 17, 2009, and such other documents as TSMC may file with, or submit to, the SEC from time to time. Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
CONTACT
Elizabeth Sun / Harrison Hsueh
Investor Relations Division
TSMC
Tel: +886-3-568-2085 / +886-3-568-2088
Email: invest@tsmc.com
Web site:
http://www.tsmc.com/
http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf/