Siliconware Precision Industries Reports a 4.2% Quarter-over-Quarter Decline in Revenues Resulting in Earnings per Share of NT$ 0.51 or Earnings per ADS of US$ 0.09 for Fourth Quarter 2012

TAICHUNG, Taiwan, Jan. 30, 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 fourth quarter of 2012 were NT$ 16,146 million, which represented a 4.2% decline in revenues compared to the third quarter of 2012 and a 2.8% growth in revenues compared to the fourth quarter of 2011. SPIL reported a net income of NT$ 1,560 million for the fourth quarter of 2012, compared with a net income of NT$ 1,699 million and a net income of NT$ 1,171 million for the third quarter of 2012 and the fourth quarter of 2011, respectively.

Diluted earnings per ordinary share for this quarter was NT$ 0.51, and diluted earnings per ADS was US$ 0.09.

All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.

Operating results review:

• For the fourth quarter of 2012, net revenues from IC packaging were NT$ 14,504 million and represented 90% of total net revenues. Net revenues from testing operations were NT$ 1,642 million and represented 10% of total net revenues.
• Cost of goods sold was NT$ 13,100 million, representing a decrease of 3.2% compared to the third quarter of 2012 and a decrease of 0.7% compared to the fourth quarter of 2011.
  • Raw materials costs were NT$ 6,176 million for the fourth quarter of 2012 and represented 38.2% of total net revenues, whereas raw materials costs were NT$ 6,650 million and represented 39.5% of total net revenues for the third quarter of 2012.
  • The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 31 million.
• Gross profit was NT$ 3,046 million for the fourth quarter of 2012, representing a gross margin of 18.9%, which decreased from a gross margin of 19.7% for the third quarter of 2012 and was up from 16.0% for the fourth quarter of 2011.
• Total operating expenses for the fourth quarter of 2012 were NT$ 1,436 million, which included selling expenses of NT$ 200 million, administrative expenses of NT$ 527 million and R&D expenses of NT$ 709 million. Total operating expenses represented 8.9% of total net revenues for the fourth quarter of 2012.
  • The accrued expenses of bonuses to employees, directors and supervisors accounted for under operating expenses totaled NT$ 31 million. 
• Operating income was NT$ 1,610 million for the fourth quarter of 2012, representing an operating margin of 10.0%, which decreased from 11.3% for the third quarter of 2012 and increased from 8.5% for the fourth quarter of 2011.
• Non-operating items:
  • Our net currency exchange gain of NT$ 203 million for the fourth quarter of 2012 was mainly due to depreciation of foreign currency denominated liabilities as a result of a depreciation in the foreign currency exchange rate of the US dollar and Japanese Yen against NT dollar, our reporting currency.  
  • Our gains on disposal of investments of NT$ 213 million for the fourth quarter were from the sale of ChipMos Bermuda and AcSiP shares.
• Net income before tax was NT$ 1,957 million for the fourth quarter of 2012, which decreased from a net income before tax of NT$ 1,997 million for the third quarter of 2012 and increased from a net income before tax of NT$ 1,431 million for the fourth quarter of 2011.
• Income tax expense was NT$ 397 million for the fourth quarter of 2012, compared with income tax expense of NT$ 298 million for the third quarter of 2012 and income tax expense of NT$ 260 million for the fourth quarter of 2011.
• Net income was NT$ 1,560 million for the fourth quarter of 2012, which decreased from a net income of NT$ 1,699 million for the third quarter of 2012 and increased from a net income of NT$ 1,171 million for the fourth quarter of 2011.
• Total number of shares outstanding was 3,094 million shares as of Dec 31,2012. Diluted earnings per ordinary share for this quarter was NT$ 0.51, or US$ 0.09 per ADS.  

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 15,858 million as of Dec 31, 2012 from NT$ 16,859 million as of Sept 30, 2012, and NT$ 15,942 million as of Dec 31, 2011. 
• Capital expenditures for the fourth quarter of 2012 totaled NT$ 5,298 million, which included NT$ 4,022 million for packaging equipment and NT$ 1,276 million for testing equipment.
• Total depreciation expenses for the fourth quarter of 2012 totaled NT$ 2,502 million, which included NT$ 1,892 million was from packaging operations and NT$ 610 million from testing operations.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 14,504 million for the fourth quarter of 2012, which represented a decrease of NT$ 759 million or 5.0% compared to the third quarter of 2012.
• Substrate-based packaging, leadframe-based packaging and wafer bumping & Flip Chip accounted for 42%, 24% and 24%, respectively, of total net revenues for the fourth quarter of 2012.
• Capital expenditures for IC packaging operations totaled NT$ 4,022 million for the fourth quarter of 2012, which included NT$ 3,272 million for packaging and building construction and NT$ 750 million for wafer bumping operations.
• As of Dec 31, 2012 we had 7,805 wirebonders installed, of which 341 were added and 215 were disposed in the fourth quarter of 2012.

IC testing service:

• Net revenues from testing operations were NT$ 1,642 million for the fourth quarter of 2012, which represented an increase of NT$ 59 million or 3.7% compared to the third quarter of 2012.
• Capital expenditures for testing operations totaled NT$ 1,276 million for the fourth quarter of 2012.
• As of Dec 31, 2012 we had 395 testers installed, of which 5 were added and 8 were disposed in the fourth quarter of 2012.

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 ROC GAAP on a consolidated basis. The investment gains or losses of our company for the three months ended Dec 31, 2012 reflect our gains or losses attributable to the fourth quarter of 2012 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, 2012, nor the consolidated financial data for our company for the twelve months ended Dec 31, 2012 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.