Results Top 3Q Guidance, Company Sees Slowdown in 4Q
(PRNewswire) —Third Quarter 2013 Overview[1]:
- Revenue: NT$33.41 billion (US$1.13 billion)
- Gross margin: 22.0%; operating margin: 7.2%
- Foundry Capacity Utilization Rate: 87%
- Net income attributable to the stockholders of the parent: NT$3.48 billion (US$117 million)
- Earnings per share: NT$0.28; earnings per ADS: US$0.047
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[1] Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending Sep 30, 2013, the three-month period ending Jun 30, 2013, and the equivalent three-month period that ended Sep 30, 2012. For all 3Q13 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Sep 30, 2013 exchange rate of NT$ 29.62 per U.S. Dollar. |
United Microelectronics Corporation (NYSE: UMC; TWSE: 2303)("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the third quarter of 2013.
Revenue was NT$33.41 billion, with gross margin at 22.0% and operating margin at 7.2%. Net income attributable to the stockholders of the parent was NT$3.48 billion, with earnings per ordinary share of NT$0.28.
Mr. Po-Wen Yen, CEO of UMC, said "In the third quarter of 2013, the foundry segment recorded NT$31.60 billion in revenues, with profit margin from foundry operations of 9.0%. Wafer shipments hit an all-time high of 1.329 million 8-inch equivalent wafers, bringing overall capacity utilization to 87%. The New Business segment recorded NT$1.83 billion in revenue, with net loss of NT$0.51 billion, down from a loss of NT$0.57 billion in 2Q13. 40nm business continued to grow and accounted for 20% of sales during 3Q13."
CEO Yen added, "During the last couple of quarters, the engineering group has focused relentlessly on yield enhancement activities to improve our 28nm manufacturing technologies. These accumulated efforts enabled 28nm Poly SiON and HK/MG yields to accelerate its climb. This accomplishment allows our pre-production customers to shift closer towards volume production, and concurrently shortens the time required for new customer adoption of UMC's 28nm platform. In the upcoming months, we look forward to further optimizing 28nm yield levels to move more customers towards volume production. In terms of specialty technologies, UMC continues to lead the foundry sector in high-voltage (HV) manufacturing processes used for applications such as driver ICs in mobile devices. Our unique HV technologies increase our customers' competitiveness so they may further gain market share in today's growing display industry."
CEO Yen continued, "For the fourth quarter, we have seen a decline in wafer demand. Primary factors that led to a weakened outlook stemmed from seasonal correction, supply chain inventory control and the uncertainties culminating in the macro economy. We firmly believe UMC is well positioned to benefit from the robust 28nm demand in the mobile industry for the next several years. To secure long-term foundry growth, UMC continues to deploy our advanced logic/mixed mode and specialty derivative technology offerings. UMC's diversified product portfolio will enhance our manufacturing flexibilities to accommodate additional customer production requirements, broaden our business scale and solidify our position as a one of the leading players in the foundry industry."
