ChipMOS REPORTS FIRST QUARTER 2012 RESULTS

18 May, 2012, 06:30 ET from ChipMOS TECHNOLOGIES (Bermuda) LTD.

HSINCHU, Taiwan, May 18, 2012 /PRNewswire-Asia-FirstCall/ -- ChipMOS TECHNOLOGIES (Bermuda) LTD. ("ChipMOS" or the "Company") (Nasdaq: IMOS) today reported unaudited consolidated financial results for the first quarter ended March 31, 2012.  All U.S. dollar figures in this release are based on the exchange rate of NT$29.50 against US$1.00 as of March 30, 2012.

Net revenue on a US GAAP basis for the first quarter of 2012 was NT$4,384.0 million or US$148.6 million, a decrease of 4.9% from NT$4,608.8 million or US$156.2 million in the fourth quarter of 2011 and a decrease of 1.9% from NT$4,469.6 million or US$151.5 million for the first quarter 2011. Results are in line with the Company's prior guidance for revenue in the seasonally slower quarter to be approximately flat-to-down in the single digits as compared to the fourth quarter of 2011.

Net loss on a US GAAP basis for the first quarter of 2012 was NT$170.0 million or US$5.8 million, and NT$6.29 or US$0.21 per basic and diluted common share, which compares to net income of NT$29.1 million or US$1.0 million, and NT$1.08 or US$0.04 per basic common share and NT$1.07 or US$0.04 per diluted common share, for the fourth quarter of 2011 and to a net loss of NT$118.7 million or US$4.0 million and NT$4.61 or US$0.16 per basic and diluted common share, for the first quarter of 2011.  As expected, results in the first quarter of 2012 were adversely impacted mainly by the softness of memory business.  The Company also incurred a US$4.2 million foreign exchange loss in the first quarter of 2012.

The unaudited consolidated financial results of ChipMOS for the first quarter ended March 31, 2012 included the financial results of ChipMOS TECHNOLOGIES INC., ChipMOS U.S.A., Inc., MODERN MIND TECHNOLOGY LIMITED and its wholly-owned subsidiary ChipMOS TECHNOLOGIES (Shanghai) LTD., and ThaiLin Semiconductor Corp.

S.J. Cheng, Chairman and Chief Executive Officer of ChipMOS, said, "The seasonally slower first quarter developed in line with prior guidance, with revenue sequentially lower in the single digits and gross margin of 6.2% in the middle of the 4.0% to 9.0% range we provided.  Despite seasonal weakness in the quarter, our overall utilization rate exiting the quarter improved to 73%.  Strength in our LCD Driver IC business was offset by added softness in our DRAM and flash testing in the first quarter.  We expect a further improvement in demand as we move through 2012 and remain confident in our outlook for the year.  We continue to gain visibility as our customers become more certain in their operating plans for 2012.  We recently announced that we purchased an existing building for approximately US$10 million. This was a logical transaction for us based on the valuation and the fact that the building is located directly across ChipMOS's existing facility in Southern Taiwan Science Park and features approximately 393,173 square feet of floor space.  We have absolutely no intention of increasing our 2012 capex budget from the prior expected range of US$85 million to US$95 million.  Instead, we will be allocating equipment to the facility that we already own or that was already in our budget. From an operating standpoint, our target for 2012 remains to achieve revenue growth of approximately 10% compared to 2011 and to generate free cash flow of approximately US$110 million."  

S.K. Chen, Chief Financial Officer of ChipMOS, said, "We exited the first quarter with a strong balance of cash and cash equivalents at US$254.5 million after reducing our total debt by another US$18.1 million to US$311.2 million, which in turn further improved our net debt to equity ratio to 16.3% as of March 31, 2012 from 22.6% in Q4 2011.  Our blended utilization was 73% in the first quarter, as we continued to meet customer capacity demands, while focusing on our objective of regaining greater profitability.  Our capital expenditures in the first quarter were US$19.9 million, in line with our plan of spending approximately 60% of our annual capex budget in the first half of 2012.  As we have previously commented, by investing in the first half of the year we will be able to continue to support areas that will drive our future growth and profitability, including LCDD and 12-inch wafer gold bumping capacity. We generated free cash flow of US$24.5 million in Q1 2012."

Selected Operation Data

1Q12

4Q11

Revenue by segment

  Testing

28%

31%

  Assembly

36%

36%

  LCD Driver  

22%

21%

  Bumping

14%

12%

Utilization by segment

  Testing

61%

62%

  Assembly

81%

80%

  LCD Driver

75%

73%

Bumping

77%

75%

  Overall

73%

72%

CapEx

US$19.9 million

US$14.9 million

  Testing

10%

32%

  Assembly

13%

10%

  LCD Driver

47%

47%

  Bumping

30%

11%

Depreciation and amortization expenses (US GAAP)

US$46.0 million

US$48.0 million

Condensed consolidated statements of cash flows

Period ended

Mar. 31, 2012

Period ended

Mar. 31, 2011

US$ million

US$ million

Net cash provided by (used in) operating activities

36.2

46.3

Net cash provided by (used in) investing activities

(15.3)

(71.4)

Net cash provided by (used in) financing activities

(15.5)

(23.7)

Effect of exchange rate changes on cash

(0.3)

0.2

Net increase (decrease) in cash and cash equivalents

5.1

(48.6)

Cash and cash equivalents at beginning of period

249.4

242.1

Cash and cash equivalents at end of period

254.5

193.5

Second Quarter 2012 Outlook

The Company expects revenue growth of approximately 7% to 12% for the second quarter 2012, as compared to the first quarter of 2012, with a further improvement in gross margin on a consolidated basis in the range of approximately 10% to 15%.

Investor Conference Call / Webcast Details

ChipMOS will review detailed first quarter 2012 results on Friday, May 18, 2012 at 8:00AM ET (8:00PM, May 18, Taiwan time). The conference call-in number is 1-201-689-8562. A live webcast of the conference call will be available at ChipMOS' website at http://www.chipmos.com. The playback is scheduled to be available in 2 hours after the conclusion of the conference call and will be accessible by dialing 1-858-384-5517. The account number to access the replay is 3055 and the confirmation ID number is 393077.

About ChipMOS TECHNOLOGIES (Bermuda) LTD.:

ChipMOS (http://www.chipmos.com ) is a leading independent provider of semiconductor testing and assembly services to customers in Taiwan, Japan, and the U.S. With advanced facilities in Hsinchu and Southern Taiwan Science Parks in Taiwan and Shanghai, ChipMOS and its subsidiaries provide testing and assembly services to a broad range of customers, including leading fabless semiconductor companies, integrated device manufacturers and independent semiconductor foundries.

Forward-Looking Statements

Certain statements contained in this announcement may be viewed as "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company's most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC") and in the Company's other filings with the SEC.

- FINANCIAL TABLES FOLLOW BELOW -

ChipMOS TECHNOLOGIES (Bermuda) LTD.

UNAUDITED CONSOLIDATED INCOME STATEMENT

For the Three Months Ended Mar. 31, 2012, Dec. 31, and Mar. 31, 2011

Figures in Millions of U.S. dollars (USD) (1)

Except for Per Share Amounts and Shares Outstanding

ROC GAAP

US GAAP

3 months ended

3 months ended

Mar. 31, 2012

Dec. 31, 2011

Mar. 31, 2011

Mar. 31, 2012

Dec. 31, 2011

Mar. 31, 2011

USD

USD

USD

USD

USD

USD

Net Revenue

148.6

156.2

151.5

148.6

156.2

151.5

Cost of Revenue

139.5

142.0

139.6

139.4

142.8

140.1

Gross Profit (Loss)

9.1

14.2

11.9

9.2

13.4

11.4

Other Operating Income

-

-

-

1.0

0.8

0.6

Operating Expenses

Research and Development

4.5

3.6

3.5

4.5

3.6

3.5

Sales and Marketing

0.7

0.6

0.5

0.7

0.6

0.5

General and Administrative

5.4

5.8

5.1

5.2

5.8

4.8

Other Operating Expenses

-

-

-

1.1

5.9

0.3

Total Operating Expenses

10.6

10.0

9.1

11.5

15.9

9.1

Income (Loss) from Operations

(1.5)

4.2

2.8

(1.3)

(1.7)

2.9

Non-Operating Income (Expenses), Net

(6.9)

(8.6)

(6.4)

(6.1)

(0.9)

(6.7)

Income (Loss) before Income Tax

(8.4)

(4.4)

(3.6)

(7.4)

(2.6)

(3.8)

Income Tax Benefit (Expense)

0.2

1.5

0.4

0.1

1.6

0.5

Net Income (Loss)

(8.2)

(2.9)

(3.2)

(7.3)

(1.0)

(3.3)

Add: Net Loss (Income) Attributable to Noncontrolling Interests

2.3

1.5

(0.8)

1.5

2.0

(0.7)

Net Income (Loss) Attributable to ChipMOS

(5.9)

(1.4)

(4.0)

(5.8)

1.0

(4.0)

Earnings (Loss) Per Share Attributable to ChipMOS -Basic

(0.22)

(0.05)

(0.16)

(0.21)

0.04

(0.16)

Shares Outstanding (in thousands)-Basic

27,030

26,920

25,748

27,030

26,920

25,748

Net Income (Loss) Attributable to ChipMOS -Diluted

(5.9)

(1.4)

(4.0)

(5.8)

1.0

(4.0)

Earnings (Loss) Per Share Attributable to ChipMOS -Diluted

(0.22)

(0.05)

(0.16)

(0.21)

0.04

(0.16)

Shares Outstanding (in thousands)-Diluted

27,030

26,920

25,748

27,030

27,285

25,748

Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$29.50 against US$1.00 as of Mar. 30, 2012. The convenience translation should not be construed as representations that the NT dollar amounts have been, or could be in the future be, converted into US dollars at this or any other exchange rate.

ChipMOS TECHNOLOGIES (Bermuda) LTD.

UNAUDITED CONSOLIDATED INCOME STATEMENT

For the Three Months Ended Mar. 31, 2012, Dec. 31, and Mar. 31, 2011

Figures in Millions of NT dollars (NTD)

Except for Per Share Amounts and Shares Outstanding

ROC GAAP

US GAAP

3 months ended

3 months ended

Mar. 31, 2012

Dec. 31, 2011

Mar. 31, 2011

Mar. 31, 2012

Dec. 31, 2011

Mar. 31, 2011

NTD

NTD

NTD

NTD

NTD

NTD

Net Revenue

4,384.0

4,608.8

4,469.6

4,384.0

4,608.8

4,469.6

Cost of Revenue

4,115.9

4,189.5

4,118.4

4,112.4

4,213.0

4,132.1

Gross Profit (Loss)

268.1

419.3

351.2

271.6

395.8

337.5

Other Operating Income

-

-

-

30.0

22.5

16.5

Operating Expenses

Research and Development

132.5

106.1

103.4

132.5

106.1

103.4

Sales and Marketing

20.4

18.1

15.8

20.4

18.1

15.8

General and Administrative

161.1

171.2

149.6

153.0

170.2

140.9

Other Operating Expenses

-

-

-

32.6

173.6

9.8

Total Operating Expenses

314.0

295.4

268.8

338.5

468.0

269.9

Income (Loss) from Operations

(45.9)

123.9

82.4

(36.9)

(49.7)

84.1

Non-Operating Income (Expenses), Net

(202.7)

(253.0)

(190.2)

(180.7)

(27.5)

(197.4)

Income (Loss) before Income Tax

(248.6)

(129.1)

(107.8)

(217.6)

(77.2)

(113.3)

Income Tax Benefit (Expense)

7.1

43.4

12.3

3.4

47.7

14.7

Net Income (Loss)

(241.5)

(85.7)

(95.5)

(214.2)

(29.5)

(98.6)

Add: Net Loss (Income) Attributable to Noncontrolling Interests

67.5

45.8

(23.6)

44.2

58.6

(20.1)

Net Income (Loss) Attributable to ChipMOS

(174.0)

(39.9)

(119.1)

(170.0)

29.1

(118.7)

Earnings (Loss) Per Share Attributable to ChipMOS-Basic

(6.44)

(1.48)

(4.63)

(6.29)

1.08

(4.61)

Shares Outstanding (in thousands)-Basic

27,030

26,920

25,748

27,030

26,920

25,748

Net Income (Loss) Attributable to ChipMOS -Diluted

(174.0)

(39.9)

(119.1)

(170.0)

29.1

(118.7)

Earnings (Loss) Per Share Attributable to ChipMOS-Diluted

(6.44)

(1.48)

(4.63)

(6.29)

1.07

(4.61)

Shares Outstanding (in thousands)-Diluted

27,030

26,920

25,748

27,030

27,285

25,748

ChipMOS TECHNOLOGIES (Bermuda) LTD.

UNAUDITED CONSOLIDATED BALANCE SHEET

As of Mar. 31, 2012, Dec. 31, and Mar. 31, 2011

Figures in Millions of U.S. dollars (USD) (1)

ROC GAAP

US GAAP

Mar. 31, 2012

Dec. 31, 2011

Mar. 31, 2011

Mar. 31, 2012

Dec. 31, 2011

Mar. 31, 2011

ASSETS

USD

USD

USD

USD

USD

USD

Cash and Cash Equivalents

254.5

249.4

193.5

254.5

249.4

193.5

Accounts and Notes Receivable

118.8

124.5

112.6

118.8

124.5

112.6

Inventories

55.6

52.0

43.5

55.6

52.0

43.5

Other Current Assets

14.2

17.9

68.3

14.2

17.7

68.1

Total Current Assets

443.1

443.8

417.9

443.1

443.6

417.7

Long-Term Investments

1.3

1.3

0.4

1.3

1.3

0.4

Property, Plant & Equipment-Net

444.6

471.1

566.2

430.9

457.7

554.0

Intangible Assets

3.3

3.4

3.2

3.3

3.4

3.2

Other Assets

39.0

39.1

40.0

41.9

42.0

42.6

Total Assets

931.3

958.7

1,027.7

920.5

948.0

1,017.9

LIABILITIES

Current Liabilities

Short-Term Loans

13.2

18.5

36.3

13.2

18.5

36.3

Current Portion of Long-Term Debts

47.3

23.2

148.7

47.3

23.2

148.7

Accounts Payable and Payables to Contractors and Equipment Suppliers

55.0

52.4

29.5

55.0

52.4

29.5

Current Portion of Long-Term Lease Payable

-

-

28.5

-

-

28.5

Other Current Liabilities

60.0

65.6

61.7

60.0

65.6

61.7

Total Current Liabilities

175.5

159.7

304.7

175.5

159.7

304.7

Long-Term Liabilities

Long-Term Debts

250.7

287.6

208.4

250.7

287.6

208.4

Long-Term Lease Payable

-

-

14.8

-

-

14.8

Other Liabilities

3.4

3.5

3.3

15.3

16.2

16.6

Total Liabilities

429.6

450.8

531.2

441.5

463.5

544.5

EQUITY

Shareholders' Equity

Capital Stock

1.3

1.3

1.3

1.3

1.3

1.3

Deferred Compensation

-

-

-

-

-

-

Capital Surplus

517.5

515.3

513.0

504.4

502.3

503.0

Retained Earnings (Accumulated Losses)

(134.3)

(128.4)

(131.9)

(131.7)

(125.9)

(131.5)

Treasury Stock

(31.3)

(31.3)

(37.8)

(31.3)

(31.3)

(37.8)

Cumulated Translation Adjustments

14.3

14.7

11.9

14.3

14.7

11.9

Unrecognized Pension Cost

-

-

-

(7.9)

(7.9)

(9.0)

Total Shareholders' Equity

367.5

371.6

356.5

349.1

353.2

337.9

Noncontrolling Interests

134.2

136.3

140.0

129.9

131.3

135.5

Total Equity

501.7

507.9

496.5

479.0

484.5

473.4

Total Liabilities & Equity

931.3

958.7

1,027.7

920.5

948.0

1,017.9

Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$29.50 against US$1.00 as of Mar. 30, 2012. The convenience translation should not be construed as representations that the NT dollar amounts have been, or could be in the future be, converted into US dollars at this or any other exchange rate.

ChipMOS TECHNOLOGIES (Bermuda) LTD.

UNAUDITED CONSOLIDATED BALANCE SHEET

As of Mar. 31, 2012, Dec. 31, and Mar. 31, 2011

Figures in Millions of NT dollars (NTD)

ROC GAAP

US GAAP

Mar. 31, 2012

Dec. 31, 2011

Mar. 31, 2011

Mar. 31, 2012

Dec. 31, 2011

Mar. 31, 2011

ASSETS

NTD

NTD

NTD

NTD

NTD

NTD

Cash and Cash Equivalents

7,506.3

7,357.9

5,707.8

7,506.3

7,357.9

5,707.8

Accounts and Notes Receivable

3,506.0

3,672.2

3,323.4

3,506.0

3,672.2

3,323.4

Inventories

1,638.9

1,533.9

1,282.2

1,639.7

1,534.9

1,283.1

Other Current Assets

417.9

527.2

2,014.9

417.9

521.0

2,008.7

Total Current Assets

13,069.1

13,091.2

12,328.3

13,069.9

13,086.0

12,323.0

Long-Term Investments

39.1

39.1

10.5

39.1

39.1

10.5

Property, Plant & Equipment-Net

13,117.7

13,896.1

16,704.8

12,712.9

13,501.0

16,342.4

Intangible Assets

97.5

100.5

95.6

97.5

100.5

95.6

Other Assets

1,150.1

1,154.2

1,179.4

1,236.5

1,237.6

1,255.4

Total Assets

27,473.5

28,281.1

30,318.6

27,155.9

27,964.2

30,026.9

LIABILITIES

Current Liabilities

Short-Term Loans

389.8

546.9

1,070.6

389.8

546.9

1,070.6

Current Portion of Long-Term Debts

1,395.5

684.0

4,386.1

1,395.5

684.0

4,386.1

Accounts Payable and Payables to Contractors and Equipment Suppliers

1,622.5

1,546.2

869.8

1,622.5

1,546.2

869.8

Current Portion of Long-Term Lease Payable

-

-

839.3

-

-

839.3

Other Current Liabilities

1,771.0

1,935.1

1,819.2

1,771.0

1,935.1

1,819.2

Total Current Liabilities

5,178.8

4,712.2

8,985.0

5,178.8

4,712.2

8,985.0

Long-Term Liabilities

Long-Term Debts

7,395.4

8,484.3

6,149.1

7,395.4

8,484.3

6,149.1

Long-Term Lease Payable

-

-

437.3

-

-

437.3

Other Liabilities

98.5

101.3

98.5

450.8

478.8

489.4

Total Liabilities

12,672.7

13,297.8

15,669.9

13,025.0

13,675.3

16,060.8

EQUITY

Shareholders' Equity

Capital Stock

39.5

39.0

38.1

39.5

39.0

38.1

Deferred Compensation

-

-

(1.0)

-

-

-

Capital Surplus

15,267.3

15,201.4

15,134.3

14,880.6

14,817.4

14,838.5

Retained Earnings (Accumulated Losses)

(3,961.4)

(3,787.4)

(3,891.4)

(3,884.1)

(3,714.2)

(3,878.9)

Treasury Stock

(924.8)

(924.8)

(1,115.0)

(924.8)

(924.8)

(1,115.0)

Cumulated Translation Adjustments

422.9

433.9

350.1

422.9

433.9

350.1

Unrecognized Pension Cost

-

-

-

(235.6)

(235.6)

(265.0)

Total Shareholders' Equity

10,843.5

10,962.1

10,515.1

10,298.5

10,415.7

9,967.8

Noncontrolling Interests

3,957.3

4,021.2

4,133.6

3,832.4

3,873.2

3,998.3

Total Equity

14,800.8

14,983.3

14,648.7

14,130.9

14,288.9

13,966.1

Total Liabilities & Equity

27,473.5

28,281.1

30,318.6

27,155.9

27,964.2

30,026.9

Contacts:

In Taiwan

In the U.S.

Dr. S.K. Chen

David Pasquale

ChipMOS TECHNOLOGIES (Bermuda) LTD.

Global IR Partners

+886-6-507-7712

+1-914-337-8801

s.k._chen@chipmos.com

dpasquale@globalirpartners.com

SOURCE ChipMOS TECHNOLOGIES (Bermuda) LTD.



RELATED LINKS

http://www.chipmos.com