UMC Reports First Quarter 2014 Results 1Q Results Top Guidance on Better than Expected Demand, Momentum Continues into 2Q

TAIPEI, April 30, 2014 /PRNewswire/ --

First Quarter 2014 Overview[1]:

  • Revenue: NT$31.69 billion (US$1.04 billion)
  • Gross margin: 18.6%; operating margin: 3.0%
  • Foundry capacity utilization rate: 81%
  • Net income attributable to the stockholders of the parent: NT$1.18 billion (US$38.7 million)
  • Earnings per share: NT$0.09; earnings per ADS: US$0.015

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the first quarter of 2014.

Revenue was NT$31.69 billion, with gross margin at 18.6% and operating margin at 3.0%. Net income attributable to the stockholders of the parent was NT$1.18 billion, with earnings per ordinary share of NT$0.09.

Mr. Po-Wen Yen, CEO of UMC, said, "In the first quarter of 2014, UMC recorded NT$28.71 billion in revenue from the foundry segment, with operating margin from foundry operations of 4.0%. Wafer shipments reached 1.258 million 8-inch equivalent wafers."

CEO Yen added, "In a seasonally quiet quarter, UMC's first quarter of 2014 foundry performance exceeded guidance, driven by continuous chip demand that brought overall capacity utilization to 81%. Growth was led by the computing sector. As a result, contribution from 65nm and below technologies represented 51% of sales, including 20% from 40nm. For 28nm, our communication and consumer customers continue to be encouraged by our sustained yield improvement. While the average 28nm yields have shown stable performance, the continuous rise in our peak wafer yields will be a convincing factor for customers to enter pilot production in the coming months. UMC also continues to focus on capturing fast growing opportunities and further expanding our market share in China. Recently, UMC hosted its 2014 China Technology Forum in Shanghai to demonstrate our manufacturing excellence and comprehensive coverage of semiconductor applications. With 20 years of pure-play foundry experience, our technology leadership in logic and specialty solutions will help us gain additional design-wins in the Chinese fabless industry."

CEO Yen continued, "For the second quarter of 2014, UMC will benefit from the continued growth in customer demand, especially from the communication segment. We expect increased wafer shipments and higher capacity utilization rates to drive better profitability. At the leading-edge, 40nm demand continues to show strength while 28nm business is gaining momentum. We are confident that our engineering team's steady progress in 28nm yield enhancement activities will help UMC to capture key business and achieve strategic goals in the near future. We will continue to execute and take the necessary steps to propel our future growth. In the long run, we will further strengthen our technology solutions and service quality to enhance shareholder returns."

[1] Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending Mar 31, 2014, the three-month period ending Dec 31, 2013, and the equivalent three-month period that ended Mar 31, 2013. For all 1Q14 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Mar 31, 2014 exchange rate of NT$ 30.463 per U.S. Dollar.

Summary of Operating Results

Operating Results

(Amount: NT$ million)

1Q14

  4Q13

QoQ %
change

 1Q13

YoY %
change

Net Operating Revenues

31,694

30,719

3.2

27,781

14.1

Gross Profit

5,901

5,557

6.2

4,492

31.4

Operating Expenses

(5,016)

(5,317)

(5.7)

(4,178)

20.1

Net Other Operating Income and Expenses

56

(46)

-

(20)

-

Operating Income

941

194

385.1

294

220.1

Net Non-Operating Income and Expenses

351

889

(60.5)

7,249

(95.2)

Net Income Attributable to the Stockholders of the Parent

1,180

749

57.5

6,593

(82.1)

EPS   (NT$ per share)

0.09

0.06


0.52


         (US$ per ADS[2])

0.015

0.010


0.085



[2] One ADS represents five Taiwan-listed ordinary shares.

Revenue increased 3.2% QoQ to NT$31.69 billion from NT$30.72 billion in 4Q13, and increased 14.1% YoY from NT$27.78 billion in 1Q13. Gross profit was NT$5.90 billion, or 18.6% of revenue, compared to NT$5.56 billion, or 18.1% of 4Q13 revenue. Operating income for the quarter was NT$0.94 billion, or 3.0% of revenue, compared to operating income of NT$0.19 billion, or 0.6% of 4Q13 revenue. Net income attributable to the stockholders of the parent in 1Q14 was NT$1.18 billion, compared to NT$749 million in 4Q13.

Earnings per ordinary share for the quarter were NT$0.09. Earnings per ADS were US$0.015. The basic weighted average number of outstanding shares in 1Q14 was 12,479,924,736, compared with 12,476,082,332 shares in 4Q13 and 12,631,240,995 shares in 1Q13. The diluted weighted average number of outstanding shares was 13,157,984,032 in 1Q14, compared with 13,243,379,446 shares in 4Q13 and 13,396,609,065 shares in 1Q13. The fully diluted share count on March 31, 2014 was approximately 13,333,286,000. On March 31, 2014, UMC held 200 million treasury shares acquired from the 15th share buy-back program.

Detailed Financials Section

The rise in revenue was largely due to an increase in shipments during 1Q14. Depreciation slightly increased 2.6% to NT$8.15 billion. Gross profit climbed 6.2% to NT$5.90 billion, or 18.6% of revenue. Total operating expenses decreased 5.7% to NT$5.02 billion. Sales and marketing expenses decreased 8.1% to NT$833 million, mainly due to lower mask expenses. Research and development expenses decreased to NT$3.34 billion, mostly due to a temporary reduction in engineering wafer use.

COGS & Expenses

(Amount: NT$ million)

1Q14

4Q13

QoQ %
change

1Q13

YoY %
change

Net Operating Revenues

31,694

30,719

3.2

27,781

14.1

COGS

(25,793)

(25,162)

2.5

(23,289)

10.8

  Depreciation

(8,145)

(7,939)

2.6

(7,628)

6.8

  Other Mfg. Costs

(17,648)

(17,223)

2.5

(15,661)

12.7

Gross Profit

5,901

5,557

6.2

4,492

31.4

Gross Margin (%)

18.6%

18.1%


16.2%


Operating Expenses

(5,016)

(5,317)

(5.7)

(4,178)

20.1

  G&A

(848)

(826)

2.7

(1,019)

(16.8)

  Sales & Marketing

(833)

(906)

(8.1)

(763)

9.2

  R&D

(3,335)

(3,585)

(7.0)

(2,396)

39.2

Net Other Operating

Income & Expenses

56

(46)

-

(20)

-

Operating Income

941

194

385.1

294

220.1

Net non-operating income in 1Q14 was NT$351 million. Net investment loss was NT$110 million, mainly from impairment charges from financial assets. Gain on disposal of investments was NT$367 million, primarily from the sale of financial assets.

Non-Operating Income and Expenses

(Amount: NT$ million)

1Q14

4Q13

1Q13

Non-Operating Income and Expenses

351

889

7,249

Net Interest Income and Expenses

(23)

(53)

(82)

Net Investment Gain and Loss

(110)

(394)

12

Gain and Loss on Disposal of Investment

367

985

33

Exchange Gain and Loss  

22

114

37

Other Gain and Loss

95

237

7,249

Cash inflow from operations was NT$6.23 billion. CAPEX spending was NT$6.28 billion, including NT$6.22 billion from the foundry segment. As a result free cash flow was negative NT$45 million in 1Q14. Cash flow from financing activities increased to NT$2.40 billion, mostly due to the increase of NT$2.33 billion in short- term bank loans. Total cash inflow was NT$3.08 billion in 1Q14. Over the next 12 months, the company expects to repay NT$3.20 billion in bank loans.

Cash Flow Summary

(Amount: NT$ million)

For the 3-Month
Period Ended
Mar. 31, 2014

For the 3-Month
Period Ended
Dec. 31, 2013

Cash Flow from Operating Activities

6,232

10,806

   Net Income before tax

1,292

1,083

   Depreciation & Amortization

9,850

9,568

   Changes in Working Capital

(4,746)

658

   Other

(164)

(503)

Cash Flow from Investing Activities

(6,100)

(7,738)

   Capital Expenditures

(6,277)

(7,751)

   Other

177

13

Cash Flow from Financing Activities

2,395

(2,787)

   Bank Loans

2,325

(842)

   Redemption of Bonds

(57)

(1,971)

   Other

127

26

Effect of Exchange Rate Changes

   on Cash and Cash Equivalents

573

215




Net Increase in Cash and Cash
Equivalents

3,100

496




Cash and Cash Equivalents of
Disposal Group included in
Non-Current Assets Held for Sale

(16)

-




Total increase in Cash and Cash
Equivalents

3,084

496

Cash and cash equivalents increased to NT$53.92 billion, largely due to the increase in short-term bank loans. Days of inventory decreased by one day to 50 days in 1Q14.

Current Assets

(Amount: NT$ billion)

1Q14

4Q13

 1Q13

Cash and Cash Equivalents

53.92

50.83

50.58

Notes & Accounts Receivable

18.89

16.82

17.44

  Days Sales Outstanding

51

53

55

Inventories, net

14.42

13.99

14.23

  Days of Inventory

50

51

53

Total Current Assets

96.75

88.80

91.80

Current liabilities increased to NT$49.24 billion, mostly due to the increase in short-term bank loans. Debt to equity ratio remained unchanged at 39%.

Liabilities

(Amount: NT$ billion)

1Q14

4Q13

1Q13

Total Current Liabilities

49.24

48.20

37.30

  Notes & Accounts Payable

7.15

7.41

6.63

  Short-Term Credit / Bonds

24.42

21.19

11.23

  Payables on Equipment

4.82

6.70

5.74

  Other

12.85

12.90

13.70

Long-Term Credit / Bonds

27.66

28.42

41.55

Total Liabilities

83.85

83.46

86.02

Debt to Equity

39%

39%

40%

Analysis of Revenue[3] for Foundry Segment

Revenue from Asia Pacific region increased to 45%, reflecting the strength in Asia-Pacific-based communication and consumer customers.

Revenue Breakdown by Region

Region

1Q14

4Q13

3Q13

2Q13

1Q13

North America

45%

47%

43%

47%

44%

Asia Pacific

45%

41%

44%

42%

46%

Europe

7%

8%

7%

8%

9%

Japan

3%

4%

6%

3%

1%

Revenue from 65nm and advanced technologies represented 51% in 1Q14, including 20% from 40nm.

Revenue Breakdown by Geometry

Geometry

1Q14

4Q13

3Q13

2Q13

1Q13

40nm and below

20%

24%

20%

20%

18%

40nm<x<=65nm

31%

29%

34%

31%

32%

65nm<x<=90nm

7%

7%

6%

6%

6%

90nm<x<=0.13um

14%

14%

16%

15%

14%

0.13um<x<=0.18um

12%

12%

11%

13%

15%

0.18um<x<=0.35um

12%

11%

10%

11%

11%

0.5um and above

4%

3%

3%

4%

4%

  The percentage of revenue from fabless customers increased to 92%.

Revenue Breakdown by Customer Type

Customer Type

1Q14

4Q13

3Q13

2Q13

1Q13

Fabless

92%

89%

86%

90%

90%

IDM

8%

11%

14%

10%

10%

The percentage of revenue from the computer segment increased to 18%, reflecting demand strength from PC-related areas such as LCD controllers.

Revenue Breakdown by Application (1)

Application

1Q14

4Q13

3Q13

2Q13

1Q13

Computer

18%

15%

16%

18%

22%

Communication

46%

49%

52%

51%

47%

Consumer

31%

31%

28%

28%

28%

Others

5%

5%

4%

3%

3%

(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset. Communication consists of handset components, broadband, WLAN, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc.


[3] Revenue in this section represents wafer sales

Blended ASP Trend for Foundry Segment

Blended average selling price (ASP) during 1Q14 decreased slightly
(To view ASP trend, visit http://www.umc.com/english/investors/1Q14_ASP_trend.asp )

Shipment and Utilization Rate[4] for Foundry Segment

Wafer shipments increased 1.8% sequentially to 1,258K in 1Q14, compared to 1,236K 8-inch equivalent wafers in 4Q13. Overall utilization rate improved to 81%.

Wafer Shipments


1Q14

4Q13

3Q13

2Q13

1Q13

Wafer Shipments
(8" K equivalents)

1,258

1,236

1,329

1,307

1,125


Quarterly Capacity Utilization Rate


1Q14

4Q13

3Q13

2Q13

1Q13

Utilization Rate

81%

79%

87%

85%

78%

Total Capacity
(8" K equivalents)

1,563

1,560

1,548

1,537

1,461


[4] Utilization Rate = Quarterly Wafer Out / Quarterly Capacity

Capacity[5] for Foundry Segment

Capacity during the first quarter was 1,563K 8-inch equivalent wafers.  The incremental increase in capacity was due to the advance node capacity expansion at Fab 12A.  The estimated installed capacity for the second quarter of 2014 will be 1,597K 8-inch equivalent wafers, due to the capacity expansion mainly from Fab 8N and advanced node expansion at 12" facilities.

Annual Capacity in

thousands of wafers


Quarterly Capacity in

thousands of wafers

FAB

Geometry
(um)

2013

2012

2011

2010


FAB

2Q14E

1Q14

4Q13

3Q13

Fab6A

6"

3.5 - 0.45

448

481

538

588


Fab6A

113

111

113

113

Fab8A

8"

0.5 - 0.25

813

815

813

816


Fab8A

204

201

204

204

Fab8C

8"

0.35 - 0.11

347

360

359

366


Fab8C

87

86

87

87

Fab8D

8"

0.13 - 0.09

382

371

364

314


Fab8D

93

94

96

96

Fab8E

8"

0.5 - 0.18

418

449

469

410


Fab8E

105

103

105

105

Fab8F

8"

0.18 - 0.11

388

389

388

388


Fab8F

98

96

98

98

Fab8S

8"

0.18 - 0.11

335

348

307

304


Fab8S

84

83

84

84

Fab8N

8"

0.5 - 0.13

469

-

-

-


Fab8N

140

126

128

128

Fab12A

12"

0.18 - 0.028

651

579

501

374


Fab12A

174

171

164

164

Fab12i

12"

0.13 - 0.040

550

537

530

454


Fab12i

147

145

145

139

Total(1)

6,107

5,514

5,322

4,791


Total

1,597

1,563

1,560

1,548

YoY Growth Rate

11%

4%

11%

4%


             2010~2012 figures account for UMC parent company only.

(1) One 6-inch wafer is converted into 0.5625(6 sq./8 sq.) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25(12 sq./8 sq.) 8-inch equivalent wafers. Capacity total figures are expressed in 8-inch equivalent wafers.


[5] Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.

CAPEX for Foundry Segment

The foundry capital expenditure for 2014 remains unchanged at US$1.1~1.3 billion. UMC spent US$207 million in the first quarter.

Capital Expenditure by Year - in US$ billion

Year

2013

2012

2011

2010

2009

CAPEX

$ 1.1

$ 1.7

$ 1.6

$ 1.8

$ 0.55


2009~2012 figures account for UMC parent company only.


2014 CAPEX Plan

8"

12"

Total

11%

89%

US$1.1~1.3 billion

Second Quarter of 2014 Outlook & Guidance

Quarter-over-Quarter Guidance:

  • Foundry Segment Wafer Shipments: To increase by low-teens percentage range
  • Foundry Segment ASP in US$: To remain flat
  • Foundry Segment Profitability: Gross profit margin will be in the mid-20 percentage range
  • Foundry Segment Capacity Utilization: High-80% range
  • 2014 CAPEX for Foundry Segment: US$1.1bn to US$1.3bn
  • Guidance to New Business Segment: Revenue to be approximately NT$3bn and operating loss to be approximately NT$0.45bn

Recent Developments / Announcements

Apr. 22, 2014

UMC Files Form 20-F for 2013 with US Securities and Exchange Commission



Apr. 18, 2014

UMC Holds 2014 China Technology Forum



Apr. 16, 2014

UMC Board of Directors Announces Amendment to the Proposal of Cash Distribution for its Annual Shareholders Meeting




- Total cash distribution to shareholders amounts to NT$6,253 million including NT$0.49/share from additional paid-in capital plus NT$0.01/share from earnings



Mar. 12, 2014

UMC Board of Directors Announces Proposals for its Annual Shareholders Meeting




- Shareholder cash dividend of NT$6,249 million


- Employee cash bonus of NT$1,163 million


- Approved the proposal of private placement plan in the 2014 Annual General Meeting. The amount proposed is to be no more than 10% of registered capital


- The 2014 AGM will be held on June 11, 2014 at UMC's Fab 8S Conference Hall in Hsin Chu



Feb. 12, 2014

Synopsys, Realtek and UMC Collaborate on Industry's First Single-Chip Ultra High Definition Smart TV SoC



Feb. 05, 2014

UMC's Taiwan Fabs Gain MOE Cleaner Production Certification



Jan. 27, 2014

UMC Receives Best Supplier Award from Lantiq for Second Straight Year



Jan. 24, 2014

UMC 4Q 2013 Financial Results


                   Please visit UMC's website for further details regarding the above announcements

Conference Call / Webcast Announcement

Wednesday, April 30, 2014

Time:

5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)



Dial-in numbers and Access Codes:

USA Toll Free:

1-800 871-3110, 1-888 700-7397

Taiwan Number:

02-2192-8016

Other Areas:

+886-2-2192-8016



Access Code:

UMC

A live webcast and replay of the 1Q14 results announcement will be available at www.umc.com under the "Investors / Events" section.

About UMC

UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing for applications spanning every major sector of the IC industry. UMC's robust foundry solutions allow chip designers to leverage the company's leading-edge processes, which include 28nm poly-SiON and gate-last High-K/Metal Gate technology, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i. Fab 12A consists of Phases 1-4 which are in production for customer products down to 28nm. Construction is underway for Phases 5&6, with future plans for Phases 7&8. The company employs over 15,000 people worldwide and has offices in Taiwan, mainland China, Europe, Japan, Korea, Singapore, and the United States. UMC can be found on the web at http://www.umc.com.

Note from UMC Concerning Forward-Looking Statements

Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S.  Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions.  Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Forms F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law

Safe Harbor Statements

This release contains forward-looking statements.  These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995.  You can identify these forward-looking statements by use of words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning.  You can also identify them by the fact that they do not relate strictly to historical or current facts.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in 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, but not limited to: (i) our dependence upon the frequent introduction of new services and technologies based on the latest developments in our industry; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international global business activities; (iv) our dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates.  Further information regarding these and other risks is included in UMC's  filings with the U.S. Securities and Exchange Commission, including its registration statements and reports on Form F-1, F-3, F-6 and 20-F and 6-K, in each case as amended. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

The financial statements included in this release are prepared and published in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from ROC GAAP and US GAAP.

This presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.

- FINANCIAL TABLES TO FOLLOW -

                UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES  

   Consolidated Condensed Balance Sheet

As of  March  31, 2014

 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)














March  31, 2014


US$


NT$


%

Assets






Current assets






 Cash and cash equivalents

1,770


53,915


17.9%

 Financial assets at fair value through profit or loss, current

28


857


0.3%

 Available-for-sale financial assets, current

76


2,314


0.8%

 Notes & Accounts receivable, net

620


18,886


6.3%

 Inventories, net

473


14,421


4.8%

 Other current assets

209


6,360


2.0%

    Total current assets

3,176


96,753


32.1%







Non-current assets






 Funds and investments

1,138


34,652


11.5%

 Property, plant and equipment

5,187


158,013


52.4%

 Other non-current assets

400


12,209


4.0%

    Total non-current assets

6,725


204,874


67.9%

Total assets

9,901


301,627


100.0%







Liabilities






Current liabilities






 Short-term loans

247


7,516


2.5%

 Financial liabilities at fair value through profit or loss, current

1


18


0.0%

 Payables

777


23,676


7.9%

 Current portion of long-term liabilities

555


16,904


5.6%

 Other current liabilities

36


1,122


0.3%

    Total current liabilities

1,616


49,236


16.3%







Non-current liabilities






 Bonds payable

656


19,980


6.6%

 Long-term loans

252


7,679


2.6%

 Other non-current liabilities

228


6,957


2.3%

    Total non-current liabilities

1,136


34,616


11.5%

    Total liabilities

2,752


83,852


27.8%







Equity






Equity attributable to the parent company






Capital

4,170


127,029


42.1%

Additional paid-in capital

1,487


45,309


15.0%

Retained earnings, unrealized gain or loss on available-for-sale
    financial assets, exchange differences on translation of
    foreign operations and equity directly relating to non-current
    assets held for sale 

1,428


43,473


14.5%

Treasury stock

(78)


(2,365)


(0.8%)

     Total equity attributable to the parent company

7,007


213,446


70.8%

Non-controlling interests

142


4,329


1.4%

     Total equity

7,149


217,775


72.2%

Total liabilities and equity

9,901


301,627


100.0%







NoteNew Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2014 exchange rate of NT $30.463 per U.S. Dollar.







           All figures are prepared in accordance with TIFRSs.






 

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

Except Per Share and Per ADS Data










































Year over Year Comparison


Quarter over Quarter Comparison


Three-Month Period Ended




Three-Month Period Ended




March 31, 2014


March 31, 2013


%


March 31, 2014


December 31, 2013


%


US$


NT$


US$


NT$


Chg.


US$


NT$


US$


NT$


Chg.

Net operating revenues

1,040


31,694


912


27,781


14.1%


1,040


31,694


1,008


30,719


3.2%

Operating costs

(846)


(25,793)


(765)


(23,289)


10.8%


(846)


(25,793)


(826)


(25,162)


2.5%

Gross profit

194


5,901


147


4,492


31.4%


194


5,901


182


5,557


6.2%


18.6%


18.6%


16.2%


16.2%




18.6%


18.6%


18.1%


18.1%



Operating expenses




















  - Sales and marketing expenses

(27)


(833)


(25)


(763)


9.2%


(27)


(833)


(30)


(906)


(8.1%)

  - General and administrative expenses

(28)


(848)


(33)


(1,019)


(16.8%)


(28)


(848)


(27)


(826)


2.7%

  - Research and development expenses

(110)


(3,335)


(79)


(2,396)


39.2%


(110)


(3,335)


(118)


(3,585)


(7.0%)

      Subtotal

(165)


(5,016)


(137)


(4,178)


20.1%


(165)


(5,016)


(175)


(5,317)


(5.7%)

Net other operating income and expenses

2


56


(0)


(20)


-


2


56


(1)


(46)


-

Operating income

31


941


10


294


100.0%


31


941


6


194


100.0%


3.0%


3.0%


1.1%


1.1%




3.0%


3.0%


0.6%


0.6%























Net non-operating income and expenses

11


351


238


7,249


(95.2%)


11


351


30


889


(60.5%)

Income from continuing operations before
   income tax

42


1,292


248


7,543


(82.9%)


42


1,292


36


1,083


19.3%


4.1%


4.1%


27.2%


27.2%




4.1%


4.1%


3.5%


3.5%























Income tax expense

(6)


(181)


(37)


(1,129)


(84.0%)


(6)


(181)


(17)


(495)


(63.4%)

Net income

36


1,111


211


6,414


(82.7%)


36


1,111


19


588


88.9%


3.5%


3.5%


23.1%


23.1%




3.5%


3.5%


1.9%


1.9%























Other comprehensive income

136


4,130


50


1,542


100.0%


136


4,130


17


510


100.0%





















Total comprehensive income

172


5,241


261


7,956


(34.1%)


172


5,241


36


1,098


100.0%





















    Net income attributable to:




















        Stockholders of the parent

39


1,180


216


6,593


(82.1%)


39


1,180


25


749


57.5%

        Non-controlling interests

(3)


(69)


(5)


(179)


(61.5%)


(3)


(69)


(6)


(161)


(57.1%)





















    Comprehensive income attributable to:




















        Stockholders of the parent

173


5,261


267


8,119


(35.2%)


173


5,261


41


1,239


100.0%

        Non-controlling interests

(1)


(20)


(6)


(163)


(87.7%)


(1)


(20)


(5)


(141)


(85.8%)





















Earnings per share-basic

0.003


0.09


0.017


0.52




0.003


0.09


0.002


0.06



Earnings per ADS (2)

0.015


0.45


0.085


2.60




0.015


0.45


0.010


0.30



Weighted average number of shares




















   outstanding (in millions)



12,480




12,631






12,480




12,476























Notes:




















(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2014 exchange rate of NT $30.463 per U.S. Dollar.









      All figures are prepared in accordance with TIFRSs.



(2) 1 ADS equals 5 common shares.







 

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income

Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)

Except Per Share and Per ADS Data














For the Three-Month Period Ended


For the Three-Month Period Ended


March 31, 2014


March 31, 2014


US$


NT$


%


US$


 NT$ 


%

Net operating revenues

1,040


31,694


100.0%


1,040


31,694


100.0%

Operating costs

(846)


(25,793)


(81.4%)


(846)


(25,793)


(81.4%)

Gross profit

194


5,901


18.6%


194


5,901


18.6%

























Operating expenses












  - Sales and marketing expenses

(27)


(833)


(2.6%)


(27)


(833)


(2.6%)

  - General and administrative expenses

(28)


(848)


(2.7%)


(28)


(848)


(2.7%)

  - Research and development expenses

(110)


(3,335)


(10.5%)


(110)


(3,335)


(10.5%)

      Subtotal

(165)


(5,016)


(15.8%)


(165)


(5,016)


(15.8%)

Net other operating income and expenses

2


56


0.2%


2


56


0.2%

Operating income

31


941


3.0%


31


941


3.0%













Net non-operating income and expenses

11


351


1.1%


11


351


1.1%

Income from continuing operations before
   income tax

42


1,292


4.1%


42


1,292


4.1%

























Income tax expense

(6)


(181)


(0.6%)


(6)


(181)


(0.6%)

Net income 

36


1,111


3.5%


36


1,111


3.5%













Other comprehensive income

136


4,130


13.0%


136


4,130


13.0%













Total comprehensive income

172


5,241


16.5%


172


5,241


16.5%













    Net income attributable to:












        Stockholders of the parent

39


1,180


3.7%


39


1,180


3.7%

        Non-controlling interests

(3)


(69)


(0.2%)


(3)


(69)


(0.2%)













    Comprehensive income attributable to:












        Stockholders of the parent

173


5,261


16.6%


173


5,261


16.6%

        Non-controlling interests

(1)


(20)


(0.1%)


(1)


(20)


(0.1%)













Earnings per share-basic

0.003


0.09




0.003


0.09



Earnings per ADS (2)

0.015


0.45




0.015


0.45















Weighted average number of shares
     outstanding (in millions)



12,480






12,480















Notes:












(1) New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2014 exchange rate of NT $30.463 per U.S. Dollar.

      All figures are prepared in accordance with TIFRSs.

(2) 1 ADS equals 5 common shares.

 

UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES

Consolidated Condensed Statement of Cash Flows

For The Three-Month Period Ended March 31, 2014

 Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$)






USD


NTD

Cash flows from operating activities :




    Net income before tax

42


1,292

    Depreciation & Amortization

323


9,850

    Impairment loss on financial assets

3


93

    Gain on disposal of investments

(12)


(367)

    Changes in notes & accounts receivable

(64)


(1,959)

    Changes in other current assets

(48)


(1,456)

    Changes in payables

(20)


(607)

    Changes in assets, liabilities and others

(19)


(614)

Net cash provided by operating activities

205


6,232





Cash flows from investing activities :




    Proceeds from disposal of available-for-sale financial assets

17


529

    Acquisition of financial assets measured at cost

(4)


(137)

    Acquisition of property, plant and equipment

(206)


(6,277)

    Acquisition of intangible assets

(6)


(175)

    Others

(1)


(40)

Net cash used in investing activities

(200)


(6,100)





Cash flows from financing activities :




    Increase in short-term loans

92


2,800

    Repayments of long-term loans

(16)


(475)

    Others

3


70

Net cash provided by financing activities

79


2,395





Effect of exchange rate changes on cash and cash equivalents

17


573

Net increase in cash and cash equivalents

101


3,100





Cash and cash equivalents at beginning of period

1,669


50,831





Cash and cash equivalents at end of period

1,770


53,931





Reconciliation of the balances of cash and cash equivalents at end of period:




Cash and cash equivalents balances on the consolidated balance sheets

1,770


53,915

Cash and cash equivalents of disposal group included in non-current assets held for sale

0


16

Cash and cash equivalents at end of period

1,770


53,931









Note: New Taiwan Dollars have been translated into U.S. Dollars at the March 31, 2014 exchange rate of NT $30.463 per U.S. Dollar.

         All figures are prepared in accordance with TIFRSs.




Contacts:

Bowen Huang / David Wong
UMC, Investor Relations
+886-2-2658-9168, ext. 16957
bowen_huang@umc.com
david_wong@umc.com

SOURCE United Microelectronics Corporation



RELATED LINKS
http://www.umc.com/english/investors/1Q14_ASP_trend.asp
http://www.umc.com

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