Siliconware Precision Industries Reports a 27.4% Quarter-over-Quarter growth in Revenues Resulting in Earnings per Share of NT$ 0.56 or Earnings per ADS of US$ 0.09 for Second Quarter 2013

TAICHUNG, Taiwan, July 31, 2013 /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 second quarter of 2013 were NT$ 17,602 million, which represented a 27.4% growth in revenues compared to the first quarter of 2013 and a 6.4% growth in revenues compared to the second quarter of 2012. SPIL reported a net income of NT$ 1,740 million for the second quarter of 2013, compared with a net loss of NT$ 292 million and a net income of NT$ 1,564 million for the first quarter of 2013 and the second quarter of 2012, respectively.

Diluted earnings per ordinary share for this quarter was NT$ 0.56, and diluted earnings per ADS was US$ 0.09.

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

Operating results review:

• For the second quarter of 2013, net revenues from IC packaging were NT$ 15,723 million and represented 89% of total net revenues. Net revenues from testing operations were NT$ 1,879 million and represented 11% of total net revenues.
• Cost of goods sold was NT$ 13,926 million, representing an increase of 18.0% compared to the first quarter of 2013 and an increase of 4.2% compared to the second quarter of 2012.
  >    Raw materials costs were NT$ 6,509 million for the second quarter of 2013 and
        represented 37.0% of total net revenues, whereas raw materials costs were NT$ 5,483
        million and represented 39.7% of total net revenues for the first quarter of 2013.
  >    The accrued expenses of bonuses to employees accounted for under cost of goods sold
        totaled NT$ 96 million. 
• Gross profit was NT$ 3,676 million for the second quarter of 2013, representing a gross margin of 20.9%, which increased from a gross margin of 14.6% for the first quarter of 2013 and was up from 19.2% for the second quarter of 2012.   
• Total operating expenses for the second quarter of 2013 were NT$ 1,780 million, which included selling expenses of NT$ 227 million, administrative expenses of NT$ 590 million and R&D expenses of NT$ 963 million. Total operating expenses represented 10.1% of total net revenues for the second quarter of 2013.
  >    The accrued expenses of bonuses to employees, directors and supervisors accounted
        for under operating expenses totaled NT$ 62 million. 
• Operating income was NT$ 1,896 million for the second quarter of 2013, representing an operating margin of 10.8%, which increased from 4.6% for the first quarter of 2013 and decreased from 11.3% for the second quarter of 2012.
• Non-operating items: 
  >    Our non-operating income was NT$ 393 million, including cash dividends of NT$ 151
        million from Unimicron and ChipMos Taiwan. 
• Net income before tax was NT$ 2,148 million for the second quarter of 2013, which increased from a net loss before tax of NT$ 203 million for the first quarter of 2013 and increased from a net income before tax of NT$ 1,878 million for the second quarter of 2012.
• Income tax expense was NT$ 408 million for the second quarter of 2013, compared with income tax expense of NT$ 89 million for the first quarter of 2013 and income tax expense of NT$ 314 million for the second quarter of 2012.
• Net income was NT$ 1,740 million for the second quarter of 2013, which increased from a net loss of NT$ 292 million for the first quarter of 2013 and increased from a net income of NT$ 1,564 million for the second quarter of 2012.
• Total number of shares outstanding was 3,116 million shares as of June 30, 2013. Diluted earnings per ordinary share for this quarter was NT$ 0.56, or US$ 0.09 per ADS.  

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 16,953 million as of June 30, 2013 from NT$ 17,413 million as of Mar 31, 2013, and NT$ 18,260 million as of June 30, 2012. 
• Capital expenditures for the second quarter of 2013 totaled NT$ 4,496 million, which included NT$ 3,803 million for packaging equipment and NT$ 693 million for testing equipment.
• Total depreciation expenses for the second quarter of 2013 totaled NT$ 2,541 million, which included NT$ 1,923 million was from packaging operations and NT$ 618 million from testing operations.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 15,723 million for the second  quarter of 2013, which represented an increase of NT$ 3,314 million or 26.7% compared to the first quarter of 2013.
• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 38%, 23% and 28%, respectively, of total net revenues for the second quarter of 2013.
• Capital expenditures for IC packaging operations totaled NT$ 3,803 million for the second quarter of 2013, which included NT$ 2,812 million for packaging and building construction and NT$ 991 million for wafer bumping operations.
• As of June 30, 2013 we had 7,893 wire bonders installed, of which 300 were added   and 212 were disposed in the second quarter of 2013.

IC testing service:                     

• Net revenues from testing operations were NT$ 1,879 million for the second quarter of 2013, which represented an increase of NT$ 469 million or 33.3% compared to the first quarter of 2013.
• Capital expenditures for testing operations totaled NT$ 693 million for the second quarter of 2013.
• As of June 30, 2013 we had 409 testers installed, of which 8 were added and 2 was disposed in the second 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 June 30, 2013 reflect our gains or losses attributable to the second 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 June 30, 2013, nor the consolidated financial data for the six months ended June 30, 2013 is necessarily indicative of the results that may be expected for any period thereafter.

Contact:

Siliconware Precision Industries Co., Ltd.
No.45, Jieh Show Rd.
Hsinchu Science Park, Hsinchu
Taiwan, 30056
www.spil.com.tw

Janet Chen, IR Director
[email protected]
+886-3-5795678#3675

Byron Chiang, Spokesperson
[email protected]
+886-3-5795678#3671

SOURCE Siliconware Precision Industries Co., Ltd.