Siliconware Precision Industries Reports a 2.9% Quarter-over-Quarter Decline in Revenues Resulting in Earnings per Share of NT$ 0.83 or Earnings per ADS of US$ 0.13 for First Quarter 2015

TAICHUNG, April 29, 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 first quarter of 2015 were NT$ 20,805 million, which represented a 2.9% decline in revenues compared to the fourth quarter of 2014 and a 15.2% growth in revenues compared to the first quarter of 2014. SPIL reported a net income of NT$ 2,615 million for the first quarter of 2015, compared with a net income of NT$ 3,015 million and a net income of NT$ 2,094 million for the fourth quarter of 2014 and the first quarter of 2014, respectively.

Diluted earnings per ordinary share for this quarter was NT$ 0.83, and diluted earnings per ADS was US$ 0.13.

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

Operating results review:

• For the first quarter of 2015, net revenues from IC packaging were NT$ 18,369 million and represented 88% of total net revenues. Net revenues from testing operations were NT$ 2,436 million and represented 12% of total net revenues.
• Cost of goods sold was NT$ 15,359 million, representing a decrease of 1.9% compared to the fourth quarter of 2014 and an increase of 9.2% compared to the first quarter of 2014.
  • Raw materials costs were NT$ 6,768 million for the first quarter of 2015 and represented 32.5% of total net revenues, whereas raw materials costs were NT$ 6,953 million and represented 32.5% of total net revenues for the fourth quarter of 2014.
  • The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 185 million.    
• Gross profit was NT$ 5,446 million for the first quarter of 2015, representing a gross margin of 26.2%, which decreased from a gross margin of 26.9% for the fourth quarter of 2014 and was up from 22.1% for the first quarter of 2014.   
• Total operating expenses for the first quarter of 2015 were NT$ 1,977 million, which included selling expenses of NT$ 248 million, administrative expenses of NT$ 820 million and R&D expenses of NT$ 909 million. Total operating expenses represented 9.5% of total net revenues for the first quarter of 2015.
  • The accrued expenses of bonuses to employees, directors accounted for under operating expenses totaled NT$ 100 million. 
• Operating income was NT$ 3,469 million for the first quarter of 2015, representing an operating margin of 16.7%, which decreased from 18.0% for the fourth quarter of 2014 and increased from 13.2% for the first quarter of 2014.
• Non-operating items:
  • Our non-operating expense was NT$ 579 million, including net losses of NT$ 315 million on fair value change of financial liabilities at fair value through profit or loss. 
• Net income before tax was NT$ 3,014 million for the first quarter of 2015, which decreased from a net income before tax of NT$ 3,684 million for the fourth quarter of 2014 and increased from a net income before tax of NT$ 2,555 million for the first quarter of 2014.
• Income tax expense was NT$ 399 million for the first quarter of 2015, compared with income tax expense of NT$ 669 million for the fourth quarter of 2014 and income tax expense of NT$ 460 million for the first quarter of 2014.
• Net income was NT$ 2,615 million for the first quarter of 2015, which decreased from a net income of NT$ 3,015 million for the fourth quarter of 2014 and increased from a net income of NT$ 2,094 million for the first quarter of 2014.
• Total number of shares outstanding was 3,143 million shares as of Mar 31, 2015. Diluted earnings per ordinary share for this quarter was NT$ 0.83, or US$ 0.13 per ADS.

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 28,264 million as of Mar 31, 2015 from NT$ 30,155 million as of Dec 31, 2014, and NT$ 18,945 million as of Mar 31, 2014.
• Capital expenditures for the first quarter of 2015 totaled NT$ 3,536 million, which included NT$ 2,202 million for packaging equipment and NT$ 1,334 million for testing equipment.
• Total depreciation expenses for the first quarter of 2015 totaled NT$ 3,212 million, which included NT$ 2,378 million was from packaging operations and NT$ 834 million from testing operations.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 18,369 million for the first quarter of 2015, which represented a decrease of NT$ 420 million or 2.2% compared to the fourth quarter of 2014.
• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 26%, 19% and 43%, respectively, of total net revenues for the first quarter of 2015.
• Capital expenditures for IC packaging operations totaled NT$ 2,202 million for the first quarter of 2015, which included NT$ 1,959 million for packaging and building construction and NT$ 243 million for wafer bumping operations.
• As of Mar 31, 2015 we had 7,375 wirebonders installed, of which 9 were disposed in the first quarter of 2015.

IC testing service:                     

• Net revenues from testing operations were NT$ 2,436 million for the first quarter of 2015, which represented a decrease of NT$ 206 million or 7.8% compared to the fourth quarter of 2014.
• Capital expenditures for testing operations totaled NT$ 1,334 million for the first quarter of 2015.
• As of Mar 31, 2015 we had 527 testers installed, of which 32 were added and 6 were disposed in the first quarter of 2015.

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 Mar 31, 2015 reflect our gains or losses attributable to the first quarter of 2015 unaudited financial results of several of our investees which are evaluated under the equity method. The consolidated financial data for our company for the three months ended Mar 31, 2015, is not necessarily indicative of the results that may be expected for any period thereafter.

For further information, please contact IR dept.

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.