Siliconware Precision Industries Reports a 1.3% Quarter-over-Quarter Decline in Revenues Resulting in Earnings per Share of NT$ 0.72 or Earnings per ADS of US$ 0.12 for Fourth Quarter 2013

TAICHUNG, Jan. 27, 2014 /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 2013 were NT$ 18,844 million, which represented a 1.3% decline in revenues compared to the third quarter of 2013 and a 16.7% growth in revenues compared to the fourth quarter of 2012. SPIL reported a net income of NT$ 2,260 million for the fourth quarter of 2013, compared with a net income of NT$ 2,184 million and a net income of NT$ 1,590 million for the third quarter of 2013 and the fourth quarter of 2012, respectively.

Diluted earnings per ordinary share for this quarter was NT$ 0.72, and diluted earnings per ADS was US$ 0.12.

All figures were prepared in accordance with TIFRS on a consolidated basis.

Operating results review:

• For the fourth quarter of 2013, net revenues from IC packaging were NT$ 16,583 million and represented 88% of total net revenues. Net revenues from testing operations were NT$ 2,261 million and represented 12% of total net revenues.
• Cost of goods sold was NT$ 14,523 million, representing a decrease of 1.0% compared to the third quarter of 2013 and an increase of 10.8% compared to the fourth quarter of 2012.
  • Raw materials costs were NT$ 6,485 million for the fourth quarter of 2013 and represented 34.4% of total net revenues, whereas raw materials costs were NT$ 6,691 million and represented 35.1% of total net revenues for the third quarter of 2013.
  • The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 186 million.
• Gross profit was NT$ 4,321 million for the fourth quarter of 2013, representing a gross margin of 22.9%, which decreased from a gross margin of 23.1% for the third quarter of 2013 and was up from 18.8% for the fourth quarter of 2012.
• Total operating expenses for the fourth quarter of 2013 were NT$ 1,675 million, which included selling expenses of NT$ 224 million, administrative expenses of NT$ 567 million and R&D expenses of NT$ 884 million. Total operating expenses represented 8.9% of total net revenues for the fourth quarter of 2013.
  • The accrued expenses of bonuses to employees, directors and supervisors accounted for under operating expenses totaled NT$ 93 million.
• Operating income was NT$ 2,646 million for the fourth quarter of 2013, representing an operating margin of 14.0%, which decreased from 14.4% for the third quarter of 2013 and increased from 9.9% for the fourth quarter of 2012.
• Non-operating items:
  • Our non-operating income was NT$ 273 million, including cash dividends of NT$ 9 million from ChipMos Bermuda. 
• Net income before tax was NT$ 2,796 million for the fourth quarter of 2013, which increased from a net income before tax of NT$ 2,715 million for the third quarter of 2013 and increased from a net income before tax of NT$ 1,974 million for the fourth quarter of 2012.
• Income tax expense was NT$ 536 million for the fourth quarter of 2013, compared with income tax expense of NT$ 531 million for the third quarter of 2013 and income tax expense of NT$ 384 million for the fourth quarter of 2012.
• Net income was NT$ 2,260 million for the fourth quarter of 2013, which increased from a net income of NT$ 2,184 million for the third quarter of 2013 and increased from a net income of NT$ 1,590 million for the fourth quarter of 2012.
• Total number of shares outstanding was 3,135 million shares as of Dec 31, 2013. Diluted earnings per ordinary share for this quarter was NT$ 0.72, or US$ 0.12 per ADS.

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 16,975 million as of Dec 31, 2013 from NT$ 13,817 million as of Sept 30, 2013, and NT$ 15,852 million as of Dec 31, 2012. 
• Capital expenditures for the fourth quarter of 2013 totaled NT$ 2,347 million, which included NT$ 1,811 million for packaging equipment and NT$ 536 million for testing equipment.
• Total depreciation expenses for the fourth quarter of 2013 totaled NT$ 2,769 million, which included NT$ 2,125 million was from packaging operations and NT$ 644 million from testing operations.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 16,583 million for the fourth quarter of 2013, which represented an decrease of NT$ 287 million or 1.7% compared to the third quarter of 2013.
• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 30%, 20% and 38%, respectively, of total net revenues for the fourth quarter of 2013.
• Capital expenditures for IC packaging operations totaled NT$ 1,811 million for the fourth quarter of 2013, which included NT$ 1,322 million for packaging and building construction and NT$ 489 million for wafer bumping operations.
• As of Dec 31, 2013 we had 7,759 wirebonders installed, of which 362 were disposed in the fourth quarter of 2013.

IC testing service: 

• Net revenues from testing operations were NT$ 2,261 million for the fourth quarter of 2013, which represented an increase of NT$ 39 million or 1.8% compared to the third quarter of 2013.
• Capital expenditures for testing operations totaled NT$ 536 million for the fourth quarter of 2013.
• As of Dec 31, 2013 we had 417 testers installed, of which 5 were added and 7 were disposed in the fourth quarter of 2013.

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 30, 2013 reflect our gains or losses attributable to the fourth quarter of 2013 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 30, 2013, nor the consolidated financial data for the twelve months ended Dec 30, 2013 is necessarily indicative of the results that may be expected for any period thereafter.

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SOURCE Siliconware Precision Industries Co., Ltd.