First Quarter of 2009 Outlook & Guidance
Quarter-over-quarter Guidance:
-- Wafer shipments: to decrease by approximately 40-42% points
-- Wafer ASP in NT$: to decrease by approximately 3-5% points
-- Sustain positive cash flow generation
-- Weakness across the three major applications
-- 2009 capex budget: will not exceed US$400 million
Conference Call / Webcast Announcement
Tuesday, February 10, 2009
Time: 9:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)
Dial-in numbers and Access Codes:
USA Toll Free: 1866 519 4004
UK Toll Free: 0808 234 6646
Singapore and Other Areas: +65 6735 7955
Access Code: UMC
A live webcast and replay of the 4Q08 results announcement will be available at http://www.umc.com under the "Investor Relations \ Investor Events" section.
About UMC
UMC (NYSE: UMC) (TSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing services for applications spanning every major sector of the IC industry. UMC's customer-driven foundry solutions allow chip designers to leverage the strength of the company's leading-edge processes, which include production proven 65nm, 45/40nm, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that 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 12,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, and the United States. UMC can be found on the web at http://www.umc.com .
Safe Harbor Statements
This release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward- looking statements by use of words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts.
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, but not limited to: (i) our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international global business activities; (iv) our dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.
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.
The forward-looking statements in this release reflect the current belief of UMC as of the date of this release, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
-- FINANCIAL TABLES TO FOLLOW --
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Balance Sheet
As of Dec 31, 2008
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Dec 31, 2008
US$ NT$ %
ASSETS
Current Assets
Cash and Cash Equivalents 1,102 36,124 17.4%
Financial assets at fair value
through profit or loss, current 53 1,741 0.8%
Notes & Accounts Receivable 238 7,795 3.8%
Inventories 237 7,770 3.7%
Other Current Assets 37 1,185 0.6%
Total Current Assets 1,667 54,615 26.3%
Non-Current Assets
Funds and Long-term Investments 1,424 46,657 22.4%
Property, Plant and Equipment 3,065 100,443 48.3%
Other Assets 191 6,273 3.0%
Total Non-Current Assets 4,680 153,373 73.7%
TOTAL ASSETS 6,347 207,988 100.0%
LIABILITIES
Current Liabilities
Financial liabilities at fair
value through profit or loss,
current 1 33 0.0%
Payables 341 11,167 5.4%
Current Portion of Long-term
Liabilities 2 67 0.0%
Other Current Liabilities 5 162 0.1%
Total Current Liabilities 349 11,429 5.5%
Non-Current Liabilities
Bonds Payable 229 7,497 3.6%
Long-term Loans 19 633 0.3%
Other Liabilities 114 3,753 1.8%
Total Non-Current Liabilities 362 11,883 5.7%
TOTAL LIABILITIES 711 23,312 11.2%
STOCKHOLDERS' EQUITY
Capital Stock 3,964 129,878 62.5%
Additional Paid-in Capital 1,775 58,150 28.0%
Retained Earnings, Unrealized Gain
on Financial Assets and
Translation Adjustment (99) (3,232) (1.6%)
Treasury Stock (4) (120) (0.1%)
TOTAL STOCKHOLDERS' EQUITY 5,636 184,676 88.8%
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 6,347 207,988 100.0%
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
December 31, 2008 exchange rate of NT $32.77 per U.S. Dollar.
All figures are in ROC GAAP.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
Year over Year Comparison
Three-Month Period Ended
Dec 31, 2008 Dec 31, 2007 %
US$ NT$ US$ NT$ Chg.
Net Sales 566 18,541 843 27,621 (32.9%)
Cost of Goods Sold (508) (16,642) (671) (21,972) (24.3%)
Net Gross Profit 58 1,899 172 5,649 (66.4%)
10.2% 10.2% 20.5% 20.5% --
Operating Expenses
-- Sales & Marketing 21 679 27 882 (23.1%)
-- General & Administrative 13 428 28 906 (52.8%)
-- Research & Development 60 1,966 77 2,535 (22.4%)
94 3,073 132 4,323 (28.9%)
Operating Income (Loss) (36) (1,174) 40 1,326 (188.5%)
(6.3%) (6.3%) 4.8% 4.8% --
Net Non-Operating Income
(Expenses) (664) (21,784) 34 1,097 (2,085.8%)
Income (Loss) from continuing
operations before income tax (700) (22,958) 74 2,423 (1,047.5%)
(123.8%) (123.8%) 8.8% 8.8% --
Income Tax (Expense) Benefit (17) (552) (33) (1,064) (48.1%)
Net Income (Loss) (717) (23,510) 41 1,359 (1,829.9%)
(126.8%) (126.8%) 4.9% 4.9% --
Earnings per Share (0.055) (1.81) 0.004 0.14 --
Earnings per ADS (2) (0.276) (9.05) 0.021 0.70 --
Weighted Average Number of
Shares Outstanding
(in millions) -- 12,972 -- 13,100 --
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement (CONTINUED)
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
Dec 31, 2008 Sep 30, 2008 %
US$ NT$ US$ NT$ Chg.
Net Sales 566 18,541 755 24,748 (25.1%)
Cost of Goods Sold (508) (16,642) (622) (20,380) (18.3%)
Net Gross Profit 58 1,899 133 4,368 (56.5%)
10.2% 10.2% 17.6% 17.6% --
Operating Expenses
-- Sales & Marketing 21 679 21 673 0.8%
-- General & Administrative 13 428 19 639 (33.1%)
-- Research & Development 60 1,966 64 2,109 (6.8%)
94 3,073 104 3,421 (10.2%)
Operating Income (Loss) (36) (1,174) 29 947 (224.0%)
(6.3%) (6.3%) 3.8% 3.8% --
Net Non-Operating Income
(Expenses) (664) (21,784) (64) (2,105) 934.9%
Income (Loss) from continuing
operations before income tax (700) (22,958) (35) (1,158) 1,882.6%
(123.8%) (123.8%) (4.7%) (4.7%) --
Income Tax (Expense) Benefit (17) (552) (8) (255) 116.5%
Net Income (Loss) (717) (23,510) (43) (1,413) 1,563.8%
(126.8%) (126.8%) (5.7%) (5.7%) --
Earnings per Share (0.055) (1.81) (0.003) (0.11) --
Earnings per ADS (2) (0.276) (9.05) (0.017) (0.55) --
Weighted Average Number of
Shares Outstanding
(in millions) -- 12,972 -- 13,130 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
December 31, 2008 exchange rate of NT $32.77 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Income Statement
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
Except Per Share and Per ADS Data
For the Three-Month Period Ended For the year Ended
Dec 31, 2008 Dec 31, 2008
US$ NT$ % US$ NT$ %
Net Sales 566 18,541 100.0% 2,824 92,530 100.0%
Cost of Goods Sold (508) (16,642) (89.8%) (2,347) (76,892) (83.1%)
Net Gross Profit 58 1,899 10.2% 477 15,638 16.9%
Operating Expenses
-- Sales & Marketing 21 679 3.6% 82 2,688 2.9%
-- General &
Administrative 13 428 2.3% 75 2,447 2.6%
-- Research &
Development 60 1,966 10.6% 250 8,199 8.9%
94 3,073 16.5% 407 13,334 14.4%
Operating Income (Loss) (36) (1,174) (6.3%) 70 2,304 2.5%
Net Non-Operating
Income (Expenses) (664) (21,784) (117.5%) (723) (23,698) (25.6%)
Income (Loss) from
continuing operations
before income tax (700) (22,958) (123.8%) (653) (21,394) (23.1%)
Income Tax (Expense)
Benefit (17) (552) (3.0%) (28) (926) (1.0%)
Net Income (Loss) (717) (23,510) (126.8%) (681) (22,320) (24.1%)
Earnings per Share (0.055) (1.81) -- (0.052) (1.70) --
Earnings per ADS (2) (0.276) (9.05) -- (0.259) (8.50) --
Weighted Average Number
of Shares Outstanding
(in millions) -- 12,972 -- -- 13,111 --
Note:
(1) New Taiwan Dollars have been translated into U.S. Dollars at the
December 31, 2008 exchange rate of NT $32.77 per U.S. Dollar.
All figures are in ROC GAAP.
(2) 1 ADS equals 5 common shares.
UNITED MICROELECTRONICS CORPORATION
Unaudited Condensed Unconsolidated Statement of Cash Flows
For The Twelve Months Ended Dec. 31, 2008
Figures in Million of New Taiwan Dollars (NT$) and U.S. Dollars (US$)
USD NTD
Cash flows from operating activities:
Net Income (681) (22,320)
Depreciation & Amortization 1,141 37,387
Loss on decline in market value
and obsolescence of inventories 94 3,082
Cash dividends received under the
equity method 15 493
Investment loss accounted for
under the equity method 377 12,374
Loss on valuation of financial
assets and liabilities 105 3,448
Impairment loss 311 10,192
Gain on disposal of investments (56) (1,839)
Gain on disposal of property,
plant and equipment (1) (47)
Exchange gain on financial assets
and liabilities (1) (33)
Exchange gain on long-term
liabilities (5) (179)
Amortization of bond discounts 0 8
Amortization of deferred income (5) (173)
Change in assets, liabilities and
others 72 2,382
Net cash provided by operating
activities 1,366 44,775
Cash flows from investing activities:
Proceeds from disposal of
available-for-sales financial
assets 63 2,075
Acquisition of financial assets
measured at cost (12) (416)
Proceeds from disposal of
financial assets measured at
cost 0 8
Acquisition of long-term
investments accounted for under
the equity method (66) (2,176)
Proceeds from disposal of long-
term investments accounted for
the equity method 0 0
Proceeds from liquidation of
long-term investments 6 207
Acquisition of property, plant
and equipment (349) (11,422)
Proceeds from disposal of
property, plant and equipment 5 164
Increase in deferred charges (23) (767)
Decrease in other assets -- others 0 3
Net cash used in investing activities (376) (12,324)
Cash flows from financing activities:
Proceeds from long-term Loans 21 700
Redemption of bonds (693) (22,717)
Cash dividends (286) (9,383)
Payment of employee bonus (9) (286)
Remuneration paid to directors
and supervisors (0) (12)
Purchase of treasury stock (70) (2,278)
Decrease in deposits-in (0) (7)
Net cash used in financing activities (1,037) (33,983)
Effect of exchange rate changes on
cash and cash equivalents 6 203
Net decrease in cash and cash
equivalents (41) (1,329)
Cash and cash equivalents at
beginning of period 1,143 37,453
Cash and cash equivalents at end of
period 1,102 36,124
Note: New Taiwan Dollars have been translated into U.S. Dollars at the
December 31, 2008 exchange rate of NT $32.77 per U.S. Dollar.
All figures are in ROC GAAP.
Contacts:
Bowen Huang / Tien Yu Tseng
UMC, Investor Relations
Tel: +886-2-2700-6999 ext. 6957
Email: bowen_huang@umc.com
tien_yu_tseng@umc.com
