Operating Expenses:
Total operating expenses for 2Q09 increased to NT$9.17 billion, representing 12.3% of net sales, lower than 15.9% of net sales in 1Q09.
Research and development expenditures increased by NT$1.37 billion sequentially, mainly due to higher level of employee profit sharing and more development expenses, mainly related to 28nm and 22nm technologies.
SG&A expenses increased by NT$1.53 billion from 1Q09 level. The increase was mainly due to higher level of employee profit sharing and opening expense related to Fab 12 Phase 4.
II - 3. Non-Operating Items
(In NT billions) 2Q09 1Q09 2Q08
Non-Operating Inc./(Exp.) 1.15 0.35 1.72
Net Interest Income/(Exp.) 0.56 0.88 1.24
Other Non-Operating 0.59 (0.53) 0.48
L-T Investments 0.11 (0.81) 0.28
SSMC 0.19 (0.32) 0.30
Others (0.08) (0.49) (0.02)
Total Non-Operating Items 1.26 (0.46) 2.00
Non-Operating Items:
For 2Q09, combined result from non-operating income and long-term investment gain was a net gain of NT$1.26 billion.
Non-operating income was NT$1.15 billion, higher than NT$0.35 billion in 1Q09, primarily due to income from litigation compensation, higher disposal gains and lower impairment losses of financial assets, partially offset by less interest income.
Net investment gain was NT$0.11 billion, improving from a net loss of NT$0.81 billion in 1Q09, mainly due to business recovery in VIS and SSMC.
III. Financial Condition Review
III - 1. Liquidity Analysis
(Selected Balance Sheet Items)
(In NT billions) 2Q09 1Q09 2Q08
Cash & Marketable Securities 246.77 229.79 223.99
Accounts Receivable -- Trade 33.38 13.82 41.86
Inventory 18.97 14.78 23.36
Total Current Assets 309.42 268.56 299.76
Accounts Payable 25.96 10.97 21.14
Current Portion of Bonds Payable 0.00 0.00 8.00
Dividends Payable 77.17 0.00 77.04
Accrued Bonus to Employees,
Directors and Supervisors 11.70 15.64 12.96
Accrued Liabilities and Others 14.80 18.76 27.84
Total Current Liabilities 129.63 45.37 146.98
Current Ratio (x) 2.4 5.9 2.0
Net Working Capital 179.79 223.19 152.78
Liquidity Analysis:
At the end of 2Q09, total current assets increased by NT$40.86 billion to NT$309.42 billion, mainly contributed by the free cash flow of NT$17.10 billion (please refer to page 6) generated during this quarter.
Total current liabilities increased by NT$84.26 billion in 2Q09, primarily resulting from the increases of cash dividend payable and payables to contractors and equipment suppliers.
Net working capital was NT$179.79 billion and current ratio decreased to 2.4x.
III - 2. Receivable/Inventory Days
(In Number of Days)
2Q09 1Q09 2Q08
Days of Receivable 30 38 42
Days of Inventory 42 44 47
Receivable and Inventory Days:
Sequentially, days of receivable decreased by eight days to 30 days in 2Q09, mainly resulting from a slower growth in average receivables than in revenue.
Days of inventory decreased by two days to 42 days.
III - 3. Debt Service
(In NT billions) 2Q09 1Q09 2Q08
Cash & Marketable Securities 246.77 229.79 223.99
Interest-Bearing Debt 15.57 16.00 22.90
Net Cash Reserves 231.20 213.79 201.09
