ChipMOS REPORTS THIRD QUARTER 2015 RESULTS

3Q15 Highlights (as compared to 2Q15):

- Net Revenue of US$146.4 Million Compared to US$153.7 Million

- Gross Profit of US$26.5 Million Compared to US$34.4 Million

- Gross Margin of 18.1% Compared to 22.4%

- Net Earnings of US$0.49 Per Basic Common Share and US$0.48 Per Diluted Common Share Compared to US$0.08 Per Basic Common Share and US$0.08 Per Diluted Common Share

- Generated US$118.7 Million Cash from Operations

- Completed Authorized ChipMOS Taiwan and ChipMOS Bermuda Share Repurchase Programs

Nov 12, 2015, 16:00 ET from ChipMOS TECHNOLOGIES (Bermuda) LTD.

HSINCHU, Taiwan, Nov. 12, 2015 /PRNewswire-FirstCall/ -- ChipMOS TECHNOLOGIES (Bermuda) LTD. ("ChipMOS" or the "Company") (Nasdaq: IMOS), an industry leading provider of outsourced semiconductor assembly and test services ("OSAT"), today reported unaudited consolidated financial results for the third quarter ended September 30, 2015. All U.S. dollar figures in this release are based on the exchange rate of NT$32.98 against US$1.00 as of September 30, 2015.

Net revenue for the third quarter of 2015 was NT$4,827.1 million or US$146.4 million, a decrease of 4.8% from NT$5,069.1 million or US$153.7 million in the second quarter of 2015 and a decrease of 16.9% from NT$5,806.3 million or US$176.1 million for the same period in 2014. This is in-line with the Company's guidance, which called for revenue to decrease approximately 2% to 7%, as compared to the second quarter of 2015.

Net income for the third quarter of 2015 was NT$454.4 million or US$13.8 million, and NT$16.11 or US$0.49 per basic common share and NT$15.85 or US$0.48 per diluted common share, as compared to net income for the second quarter of 2015 of NT$72.3 million or US$2.2 million, and NT$2.54 or US$0.08 per basic common share and NT$2.49 or US$0.08 per diluted common share, and compared to net income in the third quarter of 2014 of NT$573.2 million or US$17.4 million, and NT$19.37 or US$0.59 per basic common share and NT$18.92 or US$0.57 per diluted common share. Net earnings benefitted from a US$10.0 million foreign exchange gain, or approximately US$0.35 per basic common share and US$0.35 per diluted common share.

The unaudited consolidated financial results of ChipMOS for the third quarter ended September 30, 2015 included the financial results of ChipMOS TECHNOLOGIES INC. ("ChipMOS Taiwan"), ChipMOS U.S.A., Inc. and MODERN MIND TECHNOLOGY LIMITED and its wholly-owned subsidiary ChipMOS TECHNOLOGIES (Shanghai) LTD.

S.J. Cheng, Chairman and Chief Executive Officer of ChipMOS, said, "The third quarter developed as expected with results inline with our guidance. The first half of the 2015 was stronger than the developing second half in large part due to an inventory correction in the later part of the year.  Inventory continues to be digested in the channel but it will take time to get to a healthy level as LCD panel companies balance lower panel ASPs. The market situation has resulted in some idle capacity in our Taiwan facilities, which we plan to use to support demand that would have required a more immediate expansion of our Shanghai facility. We are continuing discussions around a potential expanded business venture in China but with more of a longer-term focus as we monitor the market inventory correction and existing capacity levels. This will allow management to focus our time on our ongoing corporate streamlining process. The Special Committee has made considerable progress since its formation a few months ago by the Board of Directors. Resolution of the final step in the streamlining of the Company is a top priority for both management and the Board. Overall, we continue to execute on our business strategy and our strategic goals. We anticipate that revenue for the fourth quarter, while lower sequentially, will come in better than typical Q4 seasonality, despite the market weakness, as we benefit from customer demand moving toward larger panels and higher resolution, driven by smartphones and 4K2K TVs."

S.K. Chen, Chief Financial Officer of ChipMOS, said, "We were able to deliver an 18.1% gross margin on a consolidated basis in the third quarter on a lower revenue level, while generating US$118.7 million cash from our operations and reducing our non-GAAP net debt to equity ratio to -27.5% as of September 30, 2015 compared to -41.4% as of June 30, 2015.  This is after we paid US$44.2 million in cash related to the share repurchase of ChipMOS Bermuda and ChipMOS Taiwan, after paying a US$25.5 million cash dividend in ChipMOS Taiwan, after paying a withholding tax of US$7.0 million, after a US$17.5 million debt repayment and after investing US$29.0 million in 3Q15 CapEx.  Our non-GAAP EBITDA of 3Q15 was US$38.3 million, 26.2% of our revenue."

Selected Operation Data

3Q15

2Q15

Revenue by segment

   Testing

26%

24%

   Assembly

32%

31%

   LCD Driver 

27%

27%

Bumping

15%

18%

Utilization by segment

   Testing

65%

65%

   Assembly

61%

62%

   LCD Driver

73%

75%

Bumping

59%

71%

   Overall

65%

68%

CapEx

US$29.0 million

US$21.4 million

   Testing

30%

22%

   Assembly

32%

29%

LCD Driver

19%

30%

   Bumping

19%

19%

Depreciation and amortization expenses

US$23.0 million

US$22.8 million

 

Condensed consolidated statements of cash flows

Period ended

Sep. 30, 2015

Period ended

Sep. 30, 2014

US$ million

US$ million

Net cash generated from (used in) operating activities

118.7

120.3

Net cash generated from (used in) investing activities

(113.3)

(81.9)

Net cash generated from (used in) financing activities

(111.7)

(9.7)

Net increase (decrease) in cash and cash equivalents

(106.3)

28.7

Effect of exchange rate changes on cash

1.0

0.0

Cash and cash equivalents at beginning of period

462.9

405.5

Cash and cash equivalents at end of period

357.6

434.2

Fourth Quarter 2015 Outlook

The Company expects revenue for the fourth quarter of 2015 will decrease approximately 4% to 9%, as compared to the third quarter of 2015, and as compared to the typical 10% seasonal decline for the same period. The Company expects gross margin on a consolidated basis to be in the range of approximately 14% to 18% for the fourth quarter of 2015. The Company anticipates depreciation and amortization expenses for the fourth quarter of 2015 to be approximately US$24 million. Operating expenses are expected to be approximately 9% to 11% of revenues in the fourth quarter of 2015 primarily resulting from the lower revenue. The Company expects CapEx spending to be approximately US$29 million in the fourth quarter of 2015, with CapEx spending for the full year 2015 to be less than US$125 million. The total number of the Company's outstanding common shares at the end of the fourth quarter of 2015 is expected to be approximately 27 million.

Investor Conference Call / Webcast Details

ChipMOS will review detailed third quarter 2015 results on Thursday, November 12, 2015 at 7:00 PM Eastern Time (8:00 AM Taiwan time, Friday, November 13, 2015). 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, with confirmation ID number 13621917.

About ChipMOS TECHNOLOGIES (Bermuda) LTD.:

ChipMOS TECHNOLOGIES (Bermuda) LTD. ("ChipMOS" or the "Company") (NASDAQ: IMOS) (http://www.chipmos.com) is an industry leading provider of semiconductor assembly and test services. With advanced facilities in Hsinchu and Southern Taiwan Science Parks in Taiwan and Shanghai, China, ChipMOS and its subsidiaries provide assembly and test services to a broad range of customers, including leading fabless semiconductor companies, integrated device manufacturers and independent semiconductor foundries. The Company's majority-owned subsidiary, ChipMOS Taiwan, is listed on TWSE under Stock Ticker 8150.

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 are 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.

About Non-Generally Accepted Accounting Principles ("Non-GAAP") Financial Measures

To supplement the consolidated financial results presented in accordance with International Financial Reporting Standards ("IFRS"), ChipMOS uses non-GAAP free cash flow, non-GAAP earnings before interest, taxes, depreciation and amortization ("EBITDA") and non-GAAP net debt to equity ratio in this press release. The non-GAAP free cash flow represents operating profit plus depreciation, amortization and interest income and less capital expenditures, non-controlling interests, interest expenses, income tax expense and dividend. The non-GAAP EBITDA represents operating profit plus depreciation and amortization. The non-GAAP net debt to equity ratio represents the ratio of net debt, the sum of debt less cash and cash equivalent, divided by equity attributable to equity holders of the Company. These non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently.

The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS.

ChipMOS considers the use of non-GAAP free cash flow, non-GAAP EBITDA and non-GAAP net debt to equity ratio provides useful information to management to manage the Company's business and make financial and operational decisions and also to the investors to understand and evaluate the Company's business and operating performance. For more information on these non-GAAP financial measures, please refer to the table captioned "Reconciliations of Non-GAAP Measures to the Nearest Comparable GAAP Measures" in this press release.

 

Contacts:

In Taiwan

Dr. S.K. Chen

ChipMOS TECHNOLOGIES (Bermuda) LTD.

+886-6-507-7712

s.k._chen@chipmos.com

In the U.S.

David Pasquale

Global IR Partners

+1-914-337-8801

dpasquale@globalirpartners.com  

 

 

- FINANCIAL TABLES FOLLOW BELOW -

ChipMOS TECHNOLOGIES (Bermuda) LTD.

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the Three Months Ended Sep. 30, Jun. 30, 2015, and Sep. 30, 2014

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

Except for Per Share Amounts and Shares Outstanding

3 months ended

Sep. 30, 2015

Jun. 30, 2015

Sep. 30, 2014

USD

USD

USD

Revenue

146.4

153.7

176.1

Cost of revenue

(119.9)

(119.3)

(130.6)

Gross profit

26.5

34.4

45.5

Other operating income

0.9

0.7

0.8

Research and development expenses

(5.7)

(5.1)

(5.0)

Sales and marketing expenses

(0.6)

(0.9)

(0.8)

Administrative and general expenses

(6.0)

(5.5)

(5.3)

Other operating expenses

0.2

(1.0)

(1.7)

Operating profit

15.3

22.6

33.5

Non-operating income (expenses), net

9.8

(1.7)

2.9

Profit (loss) before tax

25.1

20.9

36.4

Income tax benefit (expense)

(3.8)

(11.0)

(6.1)

Profit (loss) for the year

21.3

9.9

30.3

Attributable to:

Equity holders of the Company

13.8

2.2

17.4

  Non-controlling interests

7.5

7.7

12.9

21.3

9.9

30.3

Profit (loss) for the year

21.3

9.9

30.3

Other comprehensive income (loss)

Exchange differences on translation of foreign       operations

2.2

0.4

0.5

Total other comprehensive income (loss)

2.2

0.4

0.5

Total comprehensive income (loss)

23.5

10.3

30.8

Attributable to:

Equity holders of the Company

15.1

2.4

17.7

  Non-controlling interests

8.4

7.9

13.1

23.5

10.3

30.8

Earnings (loss) per share attributable to the Company -      basic

0.49

0.08

0.59

Shares outstanding (in thousands) - basic

28,212

28,512

29,585

Net income (loss) attributable to the Company - diluted

13.8

2.2

17.4

Earnings (loss) per share attributable to the Company -      diluted

0.48

0.08

0.57

Shares outstanding (in thousands) - diluted

28,676

29,059

30,293

Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$32.98 against US$1.00 as of Sep. 30, 2015. 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 STATEMENT OF COMPREHENSIVE INCOME

For the Three Months Ended Sep. 30, Jun. 30, 2015, and Sep. 30, 2014

Figures in Million of NT dollars (NTD)

Except for Per Share Amounts and Shares Outstanding

3 months ended

Sep. 30, 2015

Jun. 30, 2015

Sep. 30, 2014

NTD

NTD

NTD

Revenue

4,827.1

5,069.1

5,806.3

Cost of revenue

(3,952.0)

(3,933.6)

(4,307.3)

Gross profit

875.1

1,135.5

1,499.0

Other operating income

28.7

23.4

26.2

Research and development expenses

(187.5)

(169.7)

(164.0)

Sales and marketing expenses

(20.0)

(28.7)

(26.9)

Administrative and general expenses

(199.0)

(183.4)

(175.0)

Other operating expenses

7.5

(32.0)

(56.8)

Operating profit

504.8

745.1

1,102.5

Non-operating income (expenses), net

321.8

(58.0)

96.7

Profit (loss) before tax

826.6

687.1

1,199.2

Income tax benefit (expense)

(124.9)

(361.2)

(200.3)

Profit (loss) for the year

701.7

325.9

998.9

Attributable to:

Equity holders of the Company

454.4

72.3

573.2

  Non-controlling interests

247.3

253.6

425.7

701.7

325.9

998.9

Profit (loss) for the year

701.7

325.9

998.9

Other comprehensive income (loss)

Exchange differences on translation of foreign      operations

73.6

13.0

17.4

Total other comprehensive income (loss)

73.6

13.0

17.4

Total comprehensive income (loss)

775.3

338.9

1,016.3

Attributable to:

Equity holders of the Company

497.4

79.2

583.7

  Non-controlling interests

277.9

259.7

432.6

775.3

338.9

1,016.3

Earnings (loss) per share attributable to the      Company - basic

16.11

2.54

19.37

Shares outstanding (in thousands) - basic

28,212

28,512

29,585

Net income (loss) attributable to the Company -      diluted

454.4

72.3

573.2

Earnings (loss) per share attributable to the      Company - diluted

15.85

2.49

18.92

Shares outstanding (in thousands) - diluted

28,676

29,059

30,293

 

 

ChipMOS TECHNOLOGIES (Bermuda) LTD.

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As of Sep. 30, Jun. 30, 2015, and Sep. 30, 2014

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

Sep. 30, 2015

Jun. 30, 2015

Sep. 30, 2014

ASSETS

USD

USD

USD

Non-current assets

Available-for-sale financial assets

0.6

0.6

6.6

Investment in associates

10.2

9.9

-

Property, plant & equipment

422.3

415.7

382.1

Other non-current assets

10.8

10.7

9.8

Total non-current assets

443.9

436.9

398.5

Current assets

Inventories

53.1

53.6

51.8

Accounts and notes receivable

121.0

125.0

143.6

Short-term deposits

2.2

2.3

8.0

Other current assets

9.0

8.0

10.8

Cash and cash equivalents

357.6

444.8

434.2

Total current assets

542.9

633.7

648.4

Total assets

986.8

1,070.6

1,046.9

EQUITY AND LIABILITIES

EQUITY

Issued capital

1.0

1.0

1.0

Capital surplus

350.8

362.0

353.1

Retained earnings

74.5

76.6

57.6

Other component of equity

5.7

13.9

13.4

Equity attributable to equity holders of the Company

432.0

453.5

425.1

Non-controlling interests

196.6

196.9

242.9

Total equity

628.6

650.4

668.0

LIABILITIES

Non-current liabilities

Bank loans – non-current portion

151.1

175.3

146.6

Other non-current liabilities

17.5

17.6

17.7

Total non-current liabilities

168.6

192.9

164.3

Current liabilities

Accounts payable and payables to contractors and      equipment suppliers

36.1

40.6

43.3

Other current liabilities

65.9

104.9

82.7

Bank loans - current portion

47.0

45.5

50.4

Short-term bank loans

40.6

36.3

38.2

Total current liabilities

189.6

227.3

214.6

Total liabilities

358.2

420.2

378.9

Total equity and liabilities

986.8

1,070.6

1,046.9

Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$32.98 against US$1.00 as of Sep. 30, 2015. 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 STATEMENT OF FINANCIAL POSITION

As of Sep. 30, Jun. 30, 2015, and Sep. 30, 2014

Figures in Million of NT dollars (NTD)

Sep. 30, 2015

Jun. 30, 2015

Sep. 30, 2014

ASSETS

NTD

NTD

NTD

Non-current assets

Available-for-sale financial assets

18.5

18.5

217.7

Investment in associates

336.0

327.6

-

Property, plant & equipment

13,929.6

13,708.8

12,602.4

Other non-current assets

355.1

352.6

324.4

Total non-current assets

14,639.2

14,407.5

13,144.5

Current assets

Inventories

1,751.0

1,766.9

1,708.3

Accounts and notes receivable

3,989.5

4,122.8

4,735.6

Short-term deposits

71.7

74.7

263.5

Other current assets

296.4

264.1

355.3

Cash and cash equivalents

11,795.6

14,672.1

14,319.6

Total current assets

17,904.2

20,900.6

21,382.3

Total assets

32,543.4

35,308.1

34,526.8

EQUITY AND LIABILITIES

EQUITY

Issued capital

31.9

33.4

33.9

Capital surplus

11,570.9

11,938.9

11,644.2

Retained earnings

2,455.8

2,525.4

1,899.6

Other component of equity

188.9

459.3

442.9

Equity attributable to equity holders of the Company

14,247.5

14,957.0

14,020.6

Non-controlling interests

6,484.2

6,494.3

8,009.2

Total equity

20,731.7

21,451.3

22,029.8

LIABILITIES

Non-current liabilities

Bank loans – non-current portion

4,983.1

5,780.0

4,835.0

Other non-current liabilities

578.0

579.9

583.0

Total non-current liabilities

5,561.1

6,359.9

5,418.0

Current liabilities

Accounts payable and payables to contractors and      equipment suppliers

1,190.4

1,337.9

1,427.6

Other current liabilities

2,172.2

3,460.3

2,728.9

Bank loans - current portion

1,548.1

1,500.0

1,662.4

Short-term bank loans

1,339.9

1,198.7

1,260.1

Total current liabilities

6,250.6

7,496.9

7,079.0

Total liabilities

11,811.7

13,856.8

12,497.0

Total equity and liabilities

32,543.4

35,308.1

34,526.8

 

 

RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE GAAP MEASURES

The table below sets forth a reconciliation of our operating profit to non-GAAP free cash flow for the periods indicated:

Three months ended

September 30, 2015

June 30, 2015

September 30, 2014

USD

USD

USD

Operating profit

15.3

22.6

33.5

Add: Depreciation

23.0

22.8

21.8

         Amortization

0.0

0.0

0.0

         Interest income

0.5

0.6

0.5

Less: Capital expenditures

(29.0)

(21.4)

(18.8)

         Non-controlling interest

(7.5)

(7.7)

(12.9)

         Interest expense

(0.9)

(1.0)

(0.9)

         Income tax expense

(3.8)

(11.0)

(6.1)

         Dividend

-

-

-

Non-GAAP free cash flow

(2.4)

4.9

17.1

 

 

The table below sets forth a reconciliation of our operating profit to non-GAAP EBITDA for the periods indicated:

Three months ended,

September 30, 2015

June 30, 2015

September 30, 2014

USD

USD

USD

Operating profit

15.3

22.6

33.5

Add: Depreciation

23.0

22.8

21.8

         Amortization

0.0

0.0

0.0

Non-GAAP EBITDA

38.3

45.4

55.3

 

 

The table below sets forth a calculation of our non-GAAP net debt to equity ratio for the periods indicated:

September 30, 2015

June 30, 2015

September 30, 2014

USD

USD

USD

Short-term bank loans

40.6

36.3

38.2

Long-term bank loans

(including current portion)

 

198.1

 

220.8

 

197.0

Less: Cash and cash equivalents

(357.6)

(444.8)

(434.2)

Net debt

(118.9)

(187.7)

(199.0)

Equity attributable to equity holders of the Company

432.0

453.5

425.1

Net debt to equity ratio

-27.5%

-41.4%

-46.8%

 

 

SOURCE ChipMOS TECHNOLOGIES (Bermuda) LTD.



RELATED LINKS

http://www.chipmos.com