Siliconware Precision Industries Reports a 1.0% Quarter-over-Quarter decline in Revenues Resulting in Earnings per Share of NT$ 0.97 or Earnings per ADS of US$ 0.16 for Fourth Quarter 2014

TAICHUNG, Jan. 28, 2015 /PRNewswire/ -- Siliconware Precision Industries Co., Ltd. ("SPIL" or the "Company") (Taiwan Stock Exchange: 2325, NASDAQ: SPIL) today announced that its consolidated sales revenues for the fourth quarter of 2014 were NT$ 21,431 million, which represented a 1.0% decline in revenues compared to the third quarter of 2014 and a 13.7% growth in revenues compared to the fourth quarter of 2013. SPIL reported a net income of NT$ 3,012 million for the fourth quarter of 2014, compared with a net income of NT$ 3,257 million and a net income of NT$ 2,260 million for the third quarter of 2014 and the fourth quarter of 2013, respectively.

Diluted earnings per ordinary share for this quarter was NT$ 0.97, and diluted earnings per ADS was US$ 0.16.

All figures were prepared in accordance with T-IFRS on a consolidated basis.

Operating results review:

• For the fourth quarter of 2014, net revenues from IC packaging were NT$ 18,789 million and represented 88% of total net revenues. Net revenues from testing operations were NT$ 2,642 million and represented 12% of total net revenues.
• Cost of goods sold was NT$ 15,658 million, representing a decrease of 2.8% compared to the third quarter of 2014 and an increase of 7.8% compared to the fourth quarter of 2013.
  • Raw materials costs were NT$ 6,953 million for the fourth quarter of 2014 and represented 32.5% of total net revenues, whereas raw materials costs were   NT$ 7,208 million and represented 33.3% of total net revenues for the third quarter of 2014.
  • The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 107 million.
• Gross profit was NT$ 5,773 million for the fourth quarter of 2014, representing a gross margin of 26.9%, which increased from a gross margin of 25.6% for the third quarter of 2014 and was up from 22.9% for the fourth quarter of 2013.
• Total operating expenses for the fourth quarter of 2014 were NT$ 1,920 million, which included selling expenses of NT$ 248 million, administrative expenses of NT$ 697 million and R&D expenses of NT$ 975 million. Total operating expenses represented 8.9% of total net revenues for the fourth quarter of 2014.
  • The accrued expenses of bonuses to employees, directors accounted for under operating expenses totaled NT$ 71 million.
• Operating income was NT$ 3,853 million for the fourth quarter of 2014, representing an operating margin of 18.0%, which increased from 16.7% for the third quarter of 2014 and increased from 14.0% for the fourth quarter of 2013.
• Non-operating items:
  • Our non-operating income was NT$ 392 million, including foreign currency exchange gains of NT$ 256 million.
  • Our non-operating expense was NT$ 564 million, including net losses of NT$ 321 million on fair value change of financial liabilities at fair value through profit or loss.
• Net income before tax was NT$ 3,681 million for the fourth quarter of 2014, which decreased from a net income before tax of NT$ 3,965 million for the third quarter of 2014 and increased from a net income before tax of NT$ 2,796 million for the fourth quarter of 2013.
• Income tax expense was NT$ 669 million for the fourth quarter of 2014, compared with income tax expense of NT$ 708 million for the third quarter of 2014 and income tax expense of NT$ 536 million for the fourth quarter of 2013.
• Net income was NT$ 3,012 million for the fourth quarter of 2014, which decreased from a net income of NT$ 3,257 million for the third quarter of 2014 and increased from a net income of NT$ 2,260 million for the fourth quarter of 2013.
• Total number of shares outstanding was 3,120 million shares as of Dec 31, 2014. Diluted earnings per ordinary share for this quarter was NT$ 0.97, or US$ 0.16 per ADS.

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 30,155 million as of Dec 31, 2014 from NT$ 20,139 million as of Sept 30, 2014, and NT$ 16,975 million as of Dec 31, 2013.
• Capital expenditures for the fourth quarter of 2014 totaled NT$ 8,665 million, which included NT$ 7,450 million for packaging equipment and NT$ 1,215 million for testing equipment.
• Total depreciation expenses for the fourth quarter of 2014 totaled NT$ 3,092 million, which included NT$ 2,289 million was from packaging operations and NT$ 803 million from testing operations.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 18,789 million for the fourth quarter of 2014, which represented a decrease of NT$ 264 million or 1.4% compared to the third quarter of 2014.
• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 29%, 19% and 40%, respectively, of total net revenues for the fourth quarter of 2014.
• Capital expenditures for IC packaging operations totaled NT$ 7,450 million for the fourth quarter of 2014, which included NT$ 7,287 million for packaging and building construction and NT$ 163 million for wafer bumping operations.
• As of Dec 31, 2014 we had 7,384 wirebonders installed, of which 6 were disposed in the fourth quarter of 2014.

IC testing service:

• Net revenues from testing operations were NT$ 2,642 million for the fourth quarter of 2014, which represented an increase of NT$ 43 million or 1.7% compared to the third quarter of 2014.
• Capital expenditures for testing operations totaled NT$ 1,215 million for the fourth quarter of 2014.
• As of Dec 31, 2014 we had 501 testers installed, of which 27 were added and 9 were disposed in the fourth quarter of 2014.

Revenue Analysis

> Breakdown by end applications:

> Breakdown by packaging type:

About SPIL

Siliconware Precision Industries Ltd. ("SPIL") (NASDAQ:SPIL, Taiwan Stock Exchange:2325) is a leading provider of comprehensive semiconductor assembly and test services. SPIL is dedicated to meeting all of its customers' integrated circuit packaging and testing requirements, with turnkey solutions that range from design consultations, modeling and simulations, wafer bumping, wafer probe and sort, package assembly, final test, burn-in, to shipment. Products include advanced leadframe, substrate packages, wafer bumping and FCBGA, which are widely used in personal computers, communications, Internet appliances, cellular phones, digital cameras, cable modems, personal digital assistants and LCD monitors. SPIL supplies services and support to fabless design houses, integrated device manufacturers and wafer foundries globally. For further information, visit SPIL's web site at www.spil.com.tw.

Safe Harbor Statement

The information herein contains 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. We have based these forward-looking statements on our current expectation and projections about future events. Such forward-looking statements are inherently subject to known and unknown risks, uncertainties, assumptions about us and other factors that may cause the actual performance, financial condition or results of operations of SPIL to be materially different from what may be implied by 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:

• the intensely competitive personal computer, communications, consumer ICs and non-commodity memory semiconductor industries and markets;
• cyclical nature of the semiconductor industry;
• risks associated with global business activities;
• non-operating losses due to poor financial performance of some of our investments;
• our dependence on key personnel;
• general economic and political conditions;
• possible disruptions in commercial activities caused by natural and human induced disaster, including terrorist activities and armed conflicts and contagious disease, such as the Severe Acute Respiratory Syndrome;
• fluctuations in foreign currency exchange rates; and
• other risks identified in our annual reports on Form 20-F filed with the U.S. Securities and Exchange Commission each year.

The words "anticipate," "believe," "estimate," "expect," "intend," "plan" and similar expressions, as they relate to us, are intended to identify a number of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.

All financial figures discussed herein are prepared pursuant to TIFRS on a consolidated basis. The investment gains or losses of our company for the three months ended Dec 31, 2014 reflect our gains or losses attributable to the fourth quarter of 2014 unaudited financial results of several of our investees which are evaluated under the equity method. Neither the consolidated financial data for our company for the three months ended Dec 31, 2014, nor the consolidated financial data for our company for the twelve months ended Dec 31, 2014 is necessarily indicative of the results that may be expected for any period thereafter.

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SOURCE Siliconware Precision Industries Co., Ltd.