According to the Rule No. 0990004943 issued by the Financial Supervisory Commission ("FSC") on February 2, 2010, companies with shares listed on the TSE or traded on the Gre Tai Securities Market or the emerging stock board need to prepare their consolidated financial statements in accordance with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers, the International Financial Reporting Standards ("IFRSs"), the International Accounting Standards, and interpretations as well as related guidance translated by Accounting Research and Development Foundation and issued by the FSC for the year ending December 31, 2013. Therefore, the Company is following its listed subsidiary, ThaiLin, and will prepare its consolidated financial statements for the year ending December 31, 2013 in accordance with IFRSs. The unaudited financial information for this quarter is prepared in accordance with IFRSs. The comparative figures have been presented in accordance with IFRSs for better comparison.

Taiwan Listing Update

As part of the efforts in ensuring success in establishing the eligibility for listing on the TSE of the shares of ChipMOS Taiwan, ChipMOS Bermuda is required to reduce its current ownership interest of 83.4% in ChipMOS Taiwan to 70% or less. As a result, the Company completed the sale of 180 million outstanding common shares of ChipMOS Taiwan at the price of NT$20.0 (US$0.67) per common share on October 3, 2013, generating net proceeds to the Company of US$119.3 million. Approximately 22 million common shares of ChipMOS Taiwan were purchased by the Company¡¦s management and the Board of Directors.  Shares purchased by the Company's management and the Board of Directors are not included for purposes of meeting the foregoing ownership requirement.

In aggregate, the sale reduces the Company's ownership in ChipMOS Taiwan to approximately 523.4 million common shares, representing approximately 62.1% of the outstanding shares of ChipMOS Taiwan, from a previous holding of approximately 83.4%. 

We expect to continue to work towards satisfying the eligibility requirements for listing ChipMOS Taiwan onto the TSE in the second quarter of 2014.

Fourth Quarter 2013 Outlook

The Company expects fourth quarter of 2013 revenue to be approximately 4% to 8% lower than the third quarter of 2013, reflecting the impact of normal seasonality, along with inventory adjustments at a limited number of customers. The Company expects gross margin on a consolidated basis to be in the range of approximately 16% to 20% for the fourth quarter of 2013. The Company anticipates depreciation and amortization expenses for the fourth quarter of 2013 to be approximately US$26 million . Operating expenses are expected to be approximately 6% to 8% of revenues in the fourth quarter of 2013. The Company expects CapEx spending to be approximately US$41 million in the fourth quarter of 2013, with CapEx spending for the full year 2013 to be approximately US$122 million , as it pulls in CapEx that was previously planned for the first half of 2014 in support of growth programs. This acceleration is expected to result in full year 2014 CapEx coming in lower at approximately US$70 million . The total number of the Company¡¦s outstanding common shares at the end of the fourth quarter of 2013 is expected to be approximately 30 million.