Recovery Expected to Continue into 3Q07
TAIPEI, Taiwan, Aug. 1 /Xinhua-PRNewswire-FirstCall/ --
Second Quarter 2007 Overview (Note 1):
-- Revenue increased 9% sequentially to NT$25.10 billion (US$764 million)
-- Operating profit margin improved to 4.9% from 0.1% in 1Q07
-- Net income was NT$4.91 billion (US$149 million)
-- EPS of NT$0.28; EPADS of US$0.043
Note 1:
Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with ROC GAAP, which differ in some material respects from generally accepted accounting principles in the United States. They are reviewed, unconsolidated, and represent comparisons among the three-month period ending June 30, 2007, the three-month period ending March 31, 2007, and the equivalent three-month period that ended June 30, 2006. For all 2Q07 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2007 exchange rate of NT$32.86 per U.S. Dollar.
United Microelectronics Corporation (NYSE: UMC) (TSE: 2303) ("UMC" or "the Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the second quarter of 2007.
"We noticed signs of recovery from our customers in the second quarter, leading to a 9.8% increase in wafer shipments," said Dr. Jackson Hu, CEO at UMC. "This increase contributed to a 9% growth in quarter-over-quarter revenue and a meaningful increase in operating income."
Dr. Hu continued, "Starting from June, we have seen a continuous reduction of our customers' inventory levels. In fact, quite a few of them are currently experiencing inventory levels that are lower than normal. This situation leads us to foresee strong demand across the board for all applications in Q3. Due to much improved product and customer mixes, we are taking full advantage of this seasonally strong demand. In Q3, total wafer shipment is expected to increase by 20%, while average utilization rate will be greater than 90%. ASP will stay flat. 12-inch fab utilization rates will be slightly stronger than the average loading for our 8-inch fabs, while our 6" fab will be fully loaded. In terms of revenue contribution, sales from 90nm and 65nm technologies will increase to 25%. Our CAPEX remains unchanged at US$1.0 billion to US$1.2 billion for 2007."
"On the advanced technology front, we continue to work with several customers on multiple products. The production yields for 65nm products have been very satisfactory. However, we have noticed that customer demand for 65nm product is still in the early stage of development, and a meaningful percentage of revenue from 65nm may not be seen until early 2008. For 45nm, we will have product tape-out in Q3. We believe that applications will make good use of the increasing chip density offered by Moore's Law, which will enable the integration of more and more features on a single chip. The future of the semiconductor industry will be defined by the proliferation of these SoCs. Electronic product companies will utilize these chips to roll out a continuous stream of innovative products that feature increased functionality, lower power consumption and higher performance, and current innovative products such as the game console Wii and the iPhone can be manufactured more cost effectively."
Summary of Operating Results
Operating Results
QoQ % YoY %
(Amount: NT$ million) 2Q07 1Q07 change 2Q06 change
Revenue 25,097 23,025 9.0 25,751 (2.5)
Gross Profit 4,958 3,676 34.9 5,171 (4.1)
Operating Expenses (3,732) (3,658) 2.0 (3,541) 5.4
Operating Income 1,226 18 6711.1 1,630 (24.8)
Non-op. Income
(Expenses) 4,182 1,719 143.3 5,076 (17.6)
Net Income 4,911 1,459 236.6 6,052 (18.9)
EPS (NT$ per share) 0.28 0.08 -- 0.34 --
(US$ per ADS) 0.043 0.012 -- 0.052 --
Revenue increased 9.0% quarter-over-quarter to NT$25.10 billion, from NT$23.03 billion in 1Q07. Gross profit was NT$4.96 billion, or 19.8% of revenue, compared to NT$3.68 billion, or 16.0% of 1Q07 revenue. Operating income of NT$1.23 billion increased 6711.1% sequentially. Better capacity utilization and activities on cost control were the key reasons for the increase in revenue, gross profit and operating income during the second quarter. Net income in 2Q07 was NT$4.91 billion, an increase of 236.6% compared with NT$1.46 billion in 1Q07.
Earnings per ordinary share (EPS) for the quarter were NT$0.28. Earnings per ADS (EPADS) were US$0.043. This compares with 1Q07 EPS of NT$0.08 and EPADS of US$0.012. One ADS represents five Taiwan-listed ordinary shares. The basic weighted average number of outstanding shares in 2Q07 was 17,780,114,848, compared with 17,775,610,526 shares in 1Q07 and 17,468,679,418 shares in 2Q06. The diluted weighted average number of outstanding shares was 18,413,194,360 in 2Q07, compared with 17,904,075,495 shares in 1Q07 and 18,138,816,706 shares in 2Q06. The fully diluted share count on June 30, 2007 was 18,416,674 thousand. On June 30, 2007, UMC held 1,342,067 thousands treasury shares acquired from the 7th, 8th, 9th, and 11th share buy-back programs. The 192,067 thousand treasury shares from the 7th buy-back program were expired in May/07 and will be retired in July/07.
Detailed Financials Section
Depreciation and amortization totaled NT$9.21 billion in 2Q07, compared with NT$9.19 billion in 1Q07. Depreciation within COGS of NT$7.90 billion went up by 3.3% from 1Q07. Other manufacturing costs within COGS increased to NT$12.24 billion sequentially due to increased wafer shipments. Total operating expenses increased by 2% to NT$3.73 billion. R&D expenses of NT$2.31 billion remained virtually flat from 1Q07. The total R&D expenses were 9.2% of revenue in 2Q07.
COGS & Expenses
QoQ % YoY %
(Amount: NT$ million) 2Q07 1Q07 change 2Q06 change
Revenue 25,097 23,025 9.0 25,751 (2.5)
COGS (20,139) (19,349) 4.1 (20,580) (2.1)
Depreciation (7,899) (7,649) 3.3 (9,965) (20.7)
Other Mfg. Costs (12,240) (11,700) 4.6 (10,615) 15.3
Gross Profit 4,958 3,676 34.9 5,171 (4.1)
Gross Margin (%) 19.8% 16.0% -- 20.1% --
Total Operating Exp. (3,732) (3,658) 2.0 (3,541) 5.4
G&A (691) (678) 1.9 (676) 2.2
Sales & Marketing (732) (650) 12.6 (761) (3.8)
R&D (2,309) (2,330) (0.9) (2,104) 9.7
Operating Income 1,226 18 6711.1 1,630 (24.8)
Operating Margin (%) 4.9% 0.1% -- 6.3% --
Net non-operating income during 2Q07 was NT$4.18 billion. Gains on the disposal of investments were NT$2.63 billion, primarily from the EB1 conversion of AU Optronics shares. Net investment income was NT$760 million, which consisted of NT$434 million of investment income accounted for under the equity method, and NT$517 million of income on valuation of financial assets in 2Q07.
Non-operating Income (Expenses)
(Amount: NT$ million) 2Q07 1Q07 2Q06
Net Non-operating Income (Exp.) 4,182 1,719 5,076
Net Interest Income (Expense) 349 260 176
Net Investment Income (Loss) 760 109 442
Gain on Disposal of Investment 2,634 1,624 4,456
Exchange Gain (Loss) (46) 17 49
Others 485 (291) (47)
Cash inflow from operations was NT$7.58 billion in 2Q07. Compared to 1Q07, the lower operating cash flow figure mainly reflects the increase on notes and accounts receivable under higher operating income. The investing cash outflow primarily reflects the NT$8.97 billion of CAPEX in 2Q07. The NT$2.26 billion of financing cash outflow is primarily from NT$2.25 billion of corporate bonds repayment. Over the next 12 months, we expect to repay NT$10.5 billion in unsecured corporate bonds.
Cash Flow Summary
For the 3-Month For the 3-Month
(Amount: NT$ million) Period Ended Period Ended
Jun. 30, 2007 Mar. 31, 2007
Cash Flow from Operations 7,583 9,732
Net Income (Loss) 4,911 1,459
Depreciation & Amortization 9,212 9,192
Changes in working capital (2,766) (192)
Others (3,774) (727)
Cash Flow from Investing (9,224) (12,235)
Capital Expenditures (8,974) (12,521)
Others (250) 286
Cash Flow from Financing (2,262) 188
Effect of Exchange Rate (28) (91)
Net Cash Flow (3,931) (2,406)
Cash and cash equivalents decreased by NT$3.93 billion to NT$77.06 billion due to cash outflow for capacity expansion and bonds repayment. Days sales outstanding (Note 2) decreased to 49 days, and average inventory turnover remained at 48 days.
Note 2
Days Sales Outstanding = 365/[(Operating revenues for three-month period end *4)/[(Beginning NR&AR balance, net + Ending NR&AR balance, net)/2]]
Average Inventory Turnover = 365/[(COGS for three-month period end *4)/[(Beginning Inventory balance, net + Ending Inventory balance, net)/2]]
Current Assets
(Amount: NT$ billion) 2Q07 1Q07 2Q06
Cash & Cash Equivalents 77.06 80.99 90.05
Notes & Accounts Receivable 14.15 12.85 12.56
Days Sales Outstanding 49 50 43
Inventory 10.91 9.96 10.38
Avg. Inventory Turnover 48 48 45
Total Current Assets 113.73 115.43 119.57
Total liabilities increased by NT$2.6 billion to NT$66.01 billion in 2Q07. The increase was primarily due to the NT$12.46 billion of dividends payable. The company's debt to equity ratio remained at 23%.
Liabilities
(Amount: NT$ billion) 2Q07 1Q07 2Q06
Total Current Liabilities 54.92 41.81 36.97
Accounts Payable 4.96 4.65 4.73
Short-term Credit / Bonds 23.02 17.83 10.31
Others 26.94 19.33 21.93
Long-term Liabilities 7.49 17.99 30.28
Total Liabilities 66.01 63.41 70.87
Debt to Equity 23% 22% 26%
Analysis of Revenue (Note 3)
Note 3
Revenue in this section represents wafer sales.
The percentage of revenue contributed from Europe grew to 8% due to increasing demand on consumer and wireless communication products in 2Q07. The percentage of revenue contributed from North America and Asia Pacific remained at 47% and 43%, respectively.
Revenue Breakdown by Region
Region 2Q07 1Q07 4Q06 3Q06 2Q06
North America 47% 47% 53% 60% 51%
Asia Pacific 43% 43% 37% 27% 35%
Europe 8% 7% 7% 10% 11%
Japan 2% 3% 3% 3% 3%
The percentage of revenue from 90nm and below decreased to 17% in 2Q07 due to soft orders from computer and programmable logic customers in 1Q07. The percentage of revenue from 0.13um grew to 25% in 2Q07 due to increased orders from some consumer customers. The percentage of revenue from 0.13um and below technologies in 2Q07 increased to 42%, compared with 37% in 1Q07.
Revenue Breakdown by Geometry
Geometry 2Q07 1Q07 4Q06 3Q06 2Q06
< =90nm 17% 21% 21% 21% 16%
0.13um 25% 16% 20% 25% 22%
0.15um 9% 11% 9% 7% 9%
0.15um < x < =0.18um 20% 19% 18% 19% 20%
0.18um < x < =0.25um 4% 6% 6% 6% 6%
0.25um < x < =0.35um 18% 19% 17% 13% 18%
0.5um and above 7% 8% 9% 9% 9%
The contribution from IDM customers slightly increased to 25% in 2Q07 from 24% in 1Q07 due to inventory replenishment.
Revenue Breakdown by Customer Type
Customer Type 2Q07 1Q07 4Q06 3Q06 2Q06
Fabless 75% 76% 63% 56% 63%
IDM 25% 24% 37% 44% 37%
System 0% 0% 0% 0% 0%
Revenue from the consumer market segment increased and accounted for 26% of total revenue in 2Q07. Most of the increase was due to the relatively better demand for DTV and set-top-box. Revenue from the computer market decreased to 17% of total revenue in 2Q07, primarily due to inventory correction by some PC chipset and optical storage customers.
Revenue Breakdown by Application (1)
Application 2Q07 1Q07 4Q06 3Q06 2Q06
Computer 17% 18% 15% 15% 14%
Communication 55% 56% 61% 55% 56%
Consumer 26% 24% 22% 28% 28%
Memory 1% 1% 1% 1% 1%
Others 1% 1% 1% 1% 1%
(1) Computer consists of ICs such as HDD controllers, DVD-ROM/CD-ROM
drives ICs, LCD drivers, graphic processors, and PDAs. Communication
consists of xDSL, DSP, WLAN, LAN controllers, handset components,
caller ID devices, etc. Consumer consists of ICs used for DVD players,
game consoles, digital cameras, smart cards, toys, etc. Memory
consists of DRAM, SRAM, Flash, EPROM, ROM, and EEPROM.
Blended Average Selling Price Trend
The blended average selling price (ASP) was flat quarter-over-quarter.
(To view ASP trend, visit
http://www.umc.com/english/investors/2Q07_ASP_trend.asp )
Shipment and Utilization Rate (Note 4)
Note 4
Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
804 thousand 8-inch equivalent wafers were shipped in 2Q07, a 9.8% increase from 732 thousand 8-inch equivalents shipped in the previous quarter. Overall utilization rate for the quarter was 76%.
Wafer Shipments
2Q07 1Q07 4Q06 3Q06 2Q06
Wafer Shipments
('000 8-inch eq.) 804 732 783 799 786
Quarterly Capacity Utilization Rate
2Q07 1Q07 4Q06 3Q06 2Q06
Utilization Rate 76% 74%(1) 76% 82% 80%
Total Capacity
('000 8-inch eq.) 1,070 1,043 1,020 1,010 1,002
(1) 1Q07 utilization rate was calculated based on 1Q07 available capacity,
which is about 95% of total capacity after factoring in a 5%
productivity loss due to annual scheduled maintenance.
Capacity (Note 5)
Note 5
Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp up.
Total capacity during the second quarter was 1,070 thousand 8-inch equivalent wafers. Compared to 1Q07, the increase of 27 thousand 8-inch equivalent wafers was mainly due to capacity expansion at Fab 12A and Fab 12i. Estimated installed capacity in the third quarter is 1,095 thousand 8-inch equivalent wafers. The increase in estimated capacity during the third quarter is primarily due to the additional 12-inch capacity expansion for 300mm fabs.
Annual Capacity in thousands of 8-inch wafer equivalents
FAB Geometry 2006 2005 2004 2003
(um)
Fab 6A 6" 3.5 - 0.45 328 344 346 352
Fab 8AB 8" 0.5 - 0.25 816 816 796 801
Fab 8C 8" 0.35 - 0.15 400 401 386 325
Fab 8D 8" 0.18 - 0.09 252 274 256 238
Fab 8E 8" 0.5 - 0.18 406 404 401 354
Fab 8F 8" 0.25 - 0.15 372 378 349 342
Fab 8S 8"(1) 0.25 - 0.15 276 278 131 0
Fab 12A 12" 0.18 - 0.065 754 597 392 234
Fab 12i 12" (2) 0.13 - 0.065 413 363 101 0
Total (3) 4,017 3,855 3,158 2,646
YoY Growth Rate 4% 22% 19% 3%
Quarterly Capacity in thousands of 8-inch wafer equivalents
FAB 3Q07E 2Q07 1Q07 4Q06
Fab 6A 82 82 82 82
Fab 8AB 204 204 204 204
Fab 8C 100 100 100 100
Fab 8D 65 65 65 63
Fab 8E 102 102 102 102
Fab 8F 93 93 93 93
Fab 8S 69 69 69 69
Fab 12A 220 215 200 193
Fab 12i 160 140 128 114
Total 1,095 1,070 1,043 1,020
(1) Former fab of SiSMC, which was acquired from Silicon Integrated
Systems in July 2004.
(2) Former fab of UMCi, a UMC wholly owned subsidiary in December 2004
that was merged into UMC in April 2005
(3) One 6-inch wafer is converted into 0.5625(62/82) 8-inch equivalent
wafer; one 12-inch wafer is converted into 2.25(122/82) 8-inch
equivalent wafers.
CAPEX
Capital expenditure for UMC during 2Q07 was US$276 million. Accumulated CAPEX in 1H07 was US$654 million. UMC's 2007 full year CAPEX plans remain unchanged at US$1~1.2 billion.
UMC Capital Expenditure by Year -- in US$ billion
Year 2006 2005 2004 2003 2002 2001
CAPEX $1.0 $0.7(1) $1.5 $0.4 $0.8 $1.1
2007 CAPEX
8" fab 12" fab 12" R&D Total
UMC 2% 80% 18% US$1~1.2billion
(1) 2005 CAPEX contained UMC 2005 full year CAPEX and UMCi CAPEX during
1Q05.
Recent Developments / Announcements
Jul. 12, 2007 ATDF and UMC to Collaborate in Evaluating and
Commercializing New Technologies
Jul. 10, 2007 MaxLinear Aligns with UMC for Production of World's
SmallestSilicon Tuner Device
Jul. 5, 2007 Melexis Collaborates with UMC to Deliver Chips for
Automobile Applications
Jun. 11, 2007 UMC Shareholders Approve NT$0.7 Dividend for Fiscal Year
2006 at Annual Shareholders Meeting
At the meeting, shareholders approved:
-- Cash dividend of NT$12.46 billion (estimated NT$0.7
per share).
-- Employee cash bonus of NT$2.32 billion.
-- Capital reduction of NT$57.39 billion. The capital
reduction is subject to approval from Financial
Supervisory Commission. Related procedures and
timetables will be announced after the approval from
the FSC.
Jun. 04, 2007 UMC and ARM Partner to Deliver Comprehensive SOI
Solutions for 65nm Technology
May 23, 2007 Mentor Graphics and UMC Deliver Analog Mixed Signal
Reference Flow
May 22, 2007 UMC Holds Grand Opening Ceremony for its New R&D
Headquarters
May 09, 2007 UMC Files Form 20-F for 2006 with US Securities and
Exchange Commission
May 02, 2007 UMC 1Q 2007 Financial Results
Please visit UMC's website http://www.umc.com/english/news/index.asp for further details regarding the above announcements.
Third Quarter of 2007 Outlook & Guidance
Quarter-over-quarter Guidance:
-- Wafer shipments: to increase by approximately 20% points
-- Wafer ASP in US$: flat from the previous quarter
-- Capacity utilization rate: approximately 90%
-- Profitability: gross profit margin to improve by approximately 5%
points
-- Percentage of 90nm & below revenue: approximately 25%
-- The communication segment is expected to be the strongest followed by
the computer and consumer segments
-- 2007 capex budget: US$1.0-1.2 billion
Conference Call / Webcast Announcement
Wednesday, August 1, 2007
Time: 8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)
Dial-in numbers and Access Codes:
Asia/Europe: +1-617-213-8058
North America: 866-578-5801
Access Code: UMCCall
A live webcast and replay of the 2Q07 results announcement will be available at www.umc.com under the "Investor Relations \ Investor Events" section.
About UMC
UMC (NYSE: UMC) (TSE: 2303) is a leading global semiconductor foundry that manufactures advanced process ICs for applications spanning every major sector of the semiconductor industry. UMC delivers cutting-edge foundry technologies that enable sophisticated system-on-chip (SoC) designs, including volume production 90nm, industry-leading 65nm, and mixed signal/RFCMOS. UMC's 10 wafer manufacturing facilities include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i are both in volume production for a variety of customer products. The company employs approximately 13,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web a thttp://www.umc.com .
Safe Harbor Statements
Except for statements in respect of historical matters, the statements in this release contain "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward- looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors, including, among other things: our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; the risks associated with international global business activities; our dependence upon key personnel; general economic and political conditions, including those related to the semiconductor, communications, consumer electronics and computer industries; possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; reduced end-user purchases relative to expectations and orders; fluctuations in foreign currency exchange rates; and those risks identified in the section entitled "Risk Factors" in UMC's Annual Report on Form 20-F ("20-F") for the year ended December 31, 2006 filed with the U.S. Securities and Exchange Commission on May 9, 2007.
The financial statements included in this release are unaudited and unconsolidated, and prepared and published in accordance with ROC GAAP. Investors are cautioned that there are many differences between ROC GAAP and US GAAP, as described in note 39 to the financial statements on 20-F.
The forward-looking statements in this release reflect the current belief of UMC as of the date of this release and UMC undertakes no obligation to update these forward-looking statements for events or circumstances that occur after such date or to reflect the occurrence of unanticipated events.
- FINANCIAL TABLES TO FOLLOW -
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Balance Sheet
As of June 30, 2007
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
June 30, 2007
US$ NT$ %
ASSETS
Current Assets
Cash and Cash Equivalents 2,345 77,058 21.7%
Financial assets at fair value
through profit or loss, current 237 7,797 2.2%
Notes & Accounts Receivable 431 14,154 4.0%
Inventories 332 10,911 3.0%
Other Current Assets 116 3,810 1.1%
Total Current Assets 3,461 113,730 32.0%
Non-Current Assets
Funds and Long-term Investments 2,758 90,626 25.5%
Property, Plant and Equipment 4,282 140,715 39.6%
Intangible Assets 114 3,745 1.0%
Other Assets 205 6,738 1.9%
Total Non-Current Assets 7,359 241,824 68.0%
TOTAL ASSETS 10,820 355,554 100.0%
LIABILITIES
Current Liabilities
Financial liabilities at fair
value through profit or loss,
current 13 423 0.1%
Payables 562 18,468 5.2%
Dividends payable 379 12,462 3.5%
Current Portion of Long-term
Liabilities 701 23,023 6.5%
Other Current Liabilities 16 544 0.2%
Total Current Liabilities 1,671 54,920 15.5%
Non-Current Liabilities
Bonds Payable 228 7,495 2.1%
Other Liabilities 110 3,594 1.0%
Total Non-Current Liabilities 338 11,089 3.1%
TOTAL LIABILITIES 2,009 66,009 18.6%
STOCKHOLDERS' EQUITY
Capital Stock 5,826 191,443 53.8%
Additional Paid-in Capital 2,062 67,772 19.1%
Retained Earnings, Unrealized Gain
on Financial Assets and
Translation Adjustment 1,818 59,725 16.8%
Treasury Stock (895) (29,395) -8.3%
TOTAL STOCKHOLDERS' EQUITY 8,811 289,545 81.4%
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 10,820 355,554 100.0%
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2007 exchange rate of NT$32.86 per U.S. Dollar.
All figures are in ROC GAAP.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison
Three-Month Period Ended
June 30, 2007 June 30, 2006 %
US$ NT$ US$ NT$ Chg.
Net Sales 764 25,097 783 25,751 -2.5%
Cost of Goods Sold (613) (20,139) (626) (20,580) -2.1%
Net Gross Profit 151 4,958 157 5,171 -4.1%
19.8% 19.8% 20.1% 20.1% --
Operating Expenses
- Sales & Marketing 23 732 23 761 -3.8%
- General & Administrative 21 691 20 676 2.2%
- Research & Development 70 2,309 64 2,104 9.7%
114 3,732 107 3,541 5.4%
Operating Income (Loss) 37 1,226 50 1,630 -24.8%
4.9% 4.9% 6.3% 6.3% --
Net Non-Operating Income
(Expenses) 127 4,182 154 5,076 -17.6%
Income (Loss) from continuing
operations before income tax 164 5,408 204 6,706 -19.3%
21.6% 21.6% 26.0% 26.0% --
Income Tax (Expense) Benefit (15) (497) (20) (654) -24.0%
Net Income (Loss) 149 4,911 184 6,052 -18.9%
19.6% 19.6% 23.5% 23.5% --
Earnings per Share 0.009 0.28 0.010 0.34 --
Earnings per ADS (2) 0.043 1.40 0.052 1.70 --
Weighted Average Number of Shares
Outstanding (in millions) -- 17,780 -- 17,469 --
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Quarter over Quarter Comparison
Three-Month Period Ended
June 30, 2007 March 31, 2007 %
US$ NT$ US$ NT$ Chg.
Net Sales 764 25,097 701 23,025 9.0%
Cost of Goods Sold (613) (20,139) (589) (19,349) 4.1%
Net Gross Profit 151 4,958 112 3,676 34.9%
19.8% 19.8% 16.0% 16.0% --
Operating Expenses
- Sales & Marketing 23 732 20 650 12.6%
- General & Administrative 21 691 20 678 1.9%
- Research & Development 70 2,309 71 2,330 -0.9%
114 3,732 111 3,658 2.0%
Operating Income (Loss) 37 1,226 1 18 6711.1%
4.9% 4.9% 0.1% 0.1% --
Net Non-Operating Income
(Expenses) 127 4,182 52 1,719 143.3%
Income (Loss) from continuing
operations before income tax 164 5,408 53 1,737 211.3%
21.6% 21.6% 7.5% 7.5% --
Income Tax (Expense) Benefit (15) (497) (9) (278) 78.8%
Net Income (Loss) 149 4,911 44 1,459 236.6%
19.6% 19.6% 6.3% 6.3% --
Earnings per Share 0.009 0.28 0.002 0.08 --
Earnings per ADS (2) 0.043 1.40 0.012 0.40 --
Weighted Average Number of Shares
Outstanding (in millions) -- 17,780 -- 17,776 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2007 exchange rate of NT$32.86 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month
Period Ended For the year Ended
June 30, 2007 June 30, 2007
US$ NT$ % US$ NT$ %
Net Sales 764 25,097 100.0% 1,465 48,122 100.0%
Cost of Goods Sold (613) (20,139) -80.2% (1,202) (39,488) -82.1%
Net Gross Profit 151 4,958 19.8% 263 8,634 17.9%
Operating Expenses
- Sales & Marketing 23 732 2.9% (42) (1,382) -2.9%
- General &
Administrative 21 691 2.8% (42) (1,369) -2.8%
- Research &
Development 70 2,309 9.2% (141) (4,639) -9.6%
114 3,732 14.9% (225) (7,390) -15.3%
Operating Income (Loss) 37 1,226 4.9% 38 1,244 2.6%
Net Non-Operating Income
(Expenses) 127 4,182 16.7% 179 5,901 12.2%
Income (Loss) from
continuing operations
before income tax 164 5,408 21.6% 217 7,145 14.8%
Income Tax (Expense)
Benefit (15) (497) -2.0% (23) (775) -1.6%
Net Income (Loss) 149 4,911 19.6% 194 6,370 13.2%
Earnings per Share 0.009 0.28 -- 0.011 0.36 --
Earnings per ADS (2) 0.043 1.40 -- 0.055 1.80 --
Weighted Average Number
of Shares
Outstanding (in millions) -- 17,780 -- -- 17,778 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the June
30, 2007 exchange rate of NT$32.86 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Statement of Cash Flows
For The Six Months Ended June 30, 2007
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
Cash flows from operating activities:
Net Income 194 6,370
Depreciation & Amortization 560 18,404
Bed debts reversal (0) (1)
Gain on recovery in market value
and obsolesence of inventories (2) (58)
Cash dividends received under the
equity method 11 354
Investment gain accounted for
under the equity method (34) (1,131)
Loss on valuation of financial
assets and liabilities 4 115
Impairment loss 7 246
Gain on disposal of investments (130) (4,258)
Gain on disposal of property,
plant and equipment (1) (17)
Exchange loss on financial assets
and liabilities 0 2
Exchange loss on long-term
liabilities 9 284
Amortization of bond discounts 1 35
Amortization of deferred income (2) (72)
Change in assets and liabilities (90) (2,958)
Net cash provided from operating
activities 527 17,315
Cash flows from investing activities:
Acquisition of available-for-
sales financial assets (6) (199)
Proceeds from disposal of
available-for-sales financial
assets 15 498
Proceeds from disposal of held-
to-maturity financial assets 24 776
Acquisition of financial assets
measured at cost (4) (120)
Acquisition of long-term
investments accounted for the
equity method (15) (494)
Proceeds from disposal of long-
term investments accounted for
the equity method 5 170
Prepaid investment (7) (248)
Proceeds from liquid of long-term
investment 0 11
Acquisition of property, plant
and equipment (654) (21,495)
Proceeds from disposal of
property, plant and equipment 7 236
Increase in deferred charges (19) (617)
Decrease in other assets - others 1 23
Net cash used in investing activities (653) (21,459)
Cash flows from financing activities:
Redemption of bonds (69) (2,260)
Exercise of employee stock options 6 187
Decrease in deposits-in (0) (1)
Net cash used in financing activities (63) (2,074)
Effect of exchange rate changes on
cash and cash equivalents (4) (119)
Decrease in cash and cash equivalents (193) (6,337)
Cash and cash equivalents at
beginning of period 2,538 83,395
Cash and cash equivalents at end of
period 2,345 77,058
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
June 30, 2007 exchange rate of NT$ 32.86 per U.S. Dollar.
All figures are in ROC GAAP.
Contacts:
Bowen Huang / Dylan Lee
UMC, Investor Relations
Tel: +886-2-2700-6999 ext. 6957
Email:
Email Contact
Email Contact
Web site: http://www.umc.com/