ST. PETERS, Mo., Nov. 03, 2016 (GLOBE NEWSWIRE) -- SunEdison Semiconductor Limited (NASDAQ:SEMI) ("SunEdison Semiconductor" or the “Company”) today reported financial results for the third quarter ended September 30, 2016.
Results Review
Net sales for the 2016 third quarter were $192.5 million, up 0.8% sequentially compared to $190.9 million in the prior quarter. The sequential increase was primarily driven by higher unit volume and stable pricing. Gross profit for the 2016 third quarter was $16.8 million, or 8.7% of net sales, compared to $17.5 million, or 9.2% of net sales in the prior quarter.
Third quarter 2016 operating loss was $15.0 million, compared to an operating loss of $25.9 million in the 2016 second quarter. Third quarter 2016 operating loss included long-lived asset impairment and restructuring charges of $1.4 million and $0.8 million, respectively, primarily related to the 2015 Ipoh restructuring plan. Second quarter 2016 operating loss included a $14.7 million long-lived asset impairment charge related to the previous sale of our polysilicon and chlorosilanes plant in Merano, Italy and a $1.1 million restructuring charge related to previously announced restructuring activities.
Third quarter 2016 operating cash flow was $15.6 million compared to $11.1 million in the prior quarter. Third quarter 2016 cash from financing activities was $11.0 million and included $11.5 million of advanced payments related to a customer deposit. Capital spending was $28.0 million during the third quarter, of which $11.5 million was funded by the customer deposit. The Company ended the quarter with cash and cash equivalents of $78.3 million, which does not include the customer deposit.
Third quarter 2016 Adjusted EBITDA was $17.0 million, or 8.8% of sales, down $3.3 million compared to $20.3 million, or 10.6% of sales for the prior quarter. Third quarter 2016 and second quarter 2016 Adjusted EBITDA included foreign exchange losses of $3.8 million and $2.9 million, respectively, associated with the re-measurement of intra-company balances and derivative foreign currency forward contracts. Third quarter 2015 Adjusted EBITDA included a $1.7 million loss associated with the re-measurement of intra-company balances and derivative foreign currency forward contracts. Please see the reconciliation of Adjusted EBITDA to GAAP financial measures and a description of Adjusted EBITDA in the attached financial tables.
Conference Call
SunEdison Semiconductor will not be hosting a conference call related to the third quarter results. The company expects to file its Form 10-Q for the quarter on November 3, 2016.
About SunEdison Semiconductor
SunEdison Semiconductor is a global leader in the manufacture and sale of silicon wafers to the semiconductor industry. For over 55 years, SunEdison Semiconductor has been a pioneer in the design and development of silicon wafer technologies. With R&D and manufacturing facilities in the U.S., Europe, and Asia, SunEdison Semiconductor enables the next generation of high performance semiconductor devices. SunEdison Semiconductor’s common stock is listed on the NASDAQ OMX Global Select Market under the symbol "SEMI". For more information about SunEdison Semiconductor, please visit www.sunedisonsemi.com.
-tables to follow-
| SUNEDISON SEMICONDUCTOR LIMITED AND SUBSIDIARIES | ||||||||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||||||
| Net sales to non-affiliates | $ | 192.5 | $ | 190.9 | $ | 189.0 | $ | 565.7 | $ | 595.0 | ||||||||||
| Net sales to affiliates | — | — | — | — | 0.8 | |||||||||||||||
| Cost of goods sold | 175.7 | 173.4 | 167.7 | 516.4 | 533.8 | |||||||||||||||
| Gross profit | 16.8 | 17.5 | 21.3 | 49.3 | 62.0 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Marketing and administration | 22.9 | 20.9 | 21.1 | 63.5 | 63.0 | |||||||||||||||
| Research and development | 6.7 | 6.7 | 8.4 | 20.0 | 23.8 | |||||||||||||||
| Restructuring charges | 0.8 | 1.1 | 3.9 | 3.4 | 3.7 | |||||||||||||||
| Long-lived asset impairment charges | 1.4 | 14.7 | 56.7 | 16.1 | 58.0 | |||||||||||||||
| Operating loss | (15.0 | ) | (25.9 | ) | (68.8 | ) | (53.7 | ) | (86.5 | ) | ||||||||||
| Non-operating expenses (income): | ||||||||||||||||||||
| Interest expense | 3.2 | 3.4 | 3.6 | 10.6 | 10.7 | |||||||||||||||
| Interest income | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.3 | ) | (0.3 | ) | ||||||||||
| Other, net | 3.9 | 2.9 | 0.3 | 13.6 | (8.9 | ) | ||||||||||||||
| Total non-operating expenses | 7.0 | 6.2 | 3.8 | 23.9 | 1.5 | |||||||||||||||
| Loss before income tax expense | (22.0 | ) | (32.1 | ) | (72.6 | ) | (77.6 | ) | (88.0 | ) | ||||||||||
| Income tax expense | 3.4 | 5.4 | 7.8 | 16.2 | 16.2 | |||||||||||||||
| Loss before equity in loss of equity method investments | (25.4 | ) | (37.5 | ) | (80.4 | ) | (93.8 | ) | (104.2 | ) | ||||||||||
| Equity in loss of equity method investments, net of tax | — | (11.0 | ) | (0.4 | ) | (97.2 | ) | (1.4 | ) | |||||||||||
| Net loss | $ | (25.4 | ) | $ | (48.5 | ) | $ | (80.8 | ) | $ | (191.0 | ) | $ | (105.6 | ) | |||||
| Basic loss per share | $ | (0.60 | ) | $ | (1.15 | ) | $ | (1.93 | ) | $ | (4.54 | ) | $ | (2.53 | ) | |||||
| Diluted loss per share | $ | (0.60 | ) | $ | (1.15 | ) | $ | (1.93 | ) | $ | (4.54 | ) | $ | (2.53 | ) | |||||
| Weighted-average shares used in computing basic loss per share | 42.4 | 42.0 | 41.9 | 42.1 | 41.7 | |||||||||||||||
| Weighted-average shares used in computing diluted loss per share | 42.4 | 42.0 | 41.9 | 42.1 | 41.7 | |||||||||||||||
