2014

UMC Reports Second Quarter 2012 Results 2Q results exceed guidance; revenue growth to continue into 3Q

TAIPEI, Taiwan, July 25, 2012 /PRNewswire-Asia/ --

Second Quarter 2012 Overview (Note 1):

  • Revenue: increased 16.2% QoQ to NT$27.62 billion (US$924.67 million)
  • Gross margin: 24.4%; operating margin: 11.5%
  • Capacity utilization: 84%
  • Net income: NT$2.99 billion (US$100.10 million)
  • Earnings per share: NT$0.24; earnings per ADS: US$0.04

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its unconsolidated operating results for the second quarter of 2012.

Revenue was NT$27.62 billion, a 16.2% quarter-over-quarter increase from NT$23.77 billion in 1Q12, and a 1.9% year-over-year decrease from NT$28.15 billion in 2Q11.  Gross margin was 24.4%, operating margin was 11.5%, net income was NT$2.99 billion, and earnings per ordinary share were NT$ 0.24.

Dr. Shih-Wei Sun, CEO of UMC, said, "In 2Q 2012, UMC's results exceeded our expectations. Wafer shipments grew 18.6% quarter-over-quarter to reach 1.14 million 8-inch equivalent wafers, bringing overall capacity utilization to 84%.  Strength from the communication and consumer sectors mainly contributed to the increased shipments.  For the upcoming quarter, we expect mild revenue growth, with 40nm percentage contribution increasing significantly as volume production begins for several new products."

Dr. Sun continued, "40nm, 28nm, 20nm, FinFET 3D transistor technology and the groundbreaking for our Fab 12A P5&P6 in Tainan, Taiwan will solidify UMC's leading-edge technology and capacity foundation to further advance UMC into the next round of growth. Obtaining IBM's 20nm process design kit and FinFET technology will expedite the development of our internal technologies, enabling customers to realize the next generation of low power consumption chips for mobile communication and computing applications.  With a complete portfolio of 28nm and 20nm process technologies, Fab 12A P5&P6 readiness is timed to provide sufficient advanced capacity to propel UMC and its customers into a new growth phase.  These efforts to secure industry forefront technology and adequate capacity demonstrate UMC's leadership under our 'Customer-Driven Foundry Solutions' approach, and have been overwhelmingly well received from our customers and partners."

Dr. Sun added, "UMC's advanced technology business is entering another growth cycle. Through our upcoming efforts to enhance mass production technology, capacity expansion, and customer service, we anticipate leading-edge revenue contribution to increase substantially during the second half of this year.  However, we are cautious due to the potential for chip demand volatility in the near future, as end demand uncertainties elevate in light of growing European sovereign debt issues, supply chain inventory and customers adopting a conservative stance.  We are watching the situation closely so we may respond accordingly to any status changes, while at the same time developing leading-edge and specialty technologies, thus strengthening UMC's solid foundation to ensure stable, long-term growth."

Summary of Operating Results

Operating Results

(Amount: NT$ million)

2Q12

1Q12

QoQ %
change

2Q11

YoY %
change

Revenue

27,620

23,765

16.2

28,150

(1.9)

Gross Profit

6,740

4,550

48.1

6,718

0.3

Operating Expenses

(3,558)

(3,226)

10.3

(3,398)

4.7

Operating Income

3,182

1,324

140.3

3,320

(4.2)

Non-Operating Income

261

169

54.4

203

28.6

Net Income

2,990

1,335

124.0

3,192

(6.3)

EPS   (NT$ per share)

0.24

0.11


0.26


         (US$ per ADS)

0.040

0.018


0.044


Revenue increased 16.2% QoQ to NT$27.62 billion from NT$23.77 billion in 1Q12, and decreased 1.9% YoY from NT$28.15 billion in 2Q11.  Gross profit was NT$6.74 billion, or 24.4% of revenue, compared to NT$4.55 billion, or 19.1% of 1Q12 revenue.  Operating income for the quarter was NT$3.18 billion, or 11.5% of revenue, compared to NT$1.32 billion, or 5.6% of 1Q12 revenue.  Net income in 2Q12 was NT$2.99 billion, compared to NT$1.34 billion in 1Q12. 

Earnings per ordinary share for the quarter were NT$0.24.  Earnings per ADS(Note 2) were US$0.040.  The basic weighted average number of outstanding shares in 2Q12 was 12,621,506,549, compared with 12,613,307,158 shares in 1Q12 and 12,513,899,178 shares in 2Q11.  The diluted weighted average number of outstanding shares was 13,469,988,568 in 2Q12, compared with 13,420,471,778 shares in 1Q12 and 13,013,072,483 shares in 2Q11.  The fully diluted share count on June 30, 2012 was approximately 14,072,176,000.  On June 30, 2012, UMC held 300 million treasury shares acquired from the 14th share buy-back program.

Detailed Financials Section

Revenue increased 16.2% QoQ to NT$27.62 billion from NT$23.77 billion in 1Q12, mainly due to increased shipment volume.  Other manufacturing costs rose to NT$13.95 billion to correspond with increased wafer shipments.  Research and development expenses increased to NT$2,440 million mainly due to an increase for 28nm advanced technology development.  The total R&D expense was 8.8% of revenue in 2Q12.

COGS & Expenses

(Amount: NT$ million)

2Q12

1Q12

QoQ %
change

2Q11

YoY %
change

Revenue

27,620

23,765

16.2

28,150

(1.9)

COGS

(20,880)

(19,215)

8.7

(21,432)

(2.6)

  Depreciation

(6,932)

(6,794)

2.0

(6,495)

6.7

  Other Mfg. Costs

(13,948)

(12,421)

12.3

(14,937)

(6.6)

Gross Profit

6,740

4,550

48.1

6,718

0.3

Gross Margin (%)

24.4%

19.1%


23.9%


Total Operating Exp.

(3,558)

(3,226)

10.3

(3,398)

4.7

  G&A

(626)

(552)

13.4

(588)

6.5

  Sales & Marketing

(492)

(509)

(3.3)

(585)

(15.9)

  R&D

(2,440)

(2,165)

12.7

(2,225)

9.7

Operating Income

3,182

1,324

140.3

3,320

(4.2)

Net non-operating income during 2Q12 increased QoQ to NT$261 million.  Net investment loss increased from NT$176 million in 1Q to NT$429 million, mainly from investment loss accounted for under the equity method.  Exchange gain was mainly due to investee capital deduction and USD appreciation.  Increase to other gain was mainly from the valuation gain of financial liabilities.

Non-Operating Income (Expenses)

(Amount: NT$ million)

2Q12

1Q12

2Q11

Net Non-Operating Income

261

169

203

Net Interest Income (Loss)

(8)

(5)

17

Net Investment Income (Loss)

(429)

(176)

(253)

Gain (Loss) on Disposal of Investment

83

362

203

Exchange Gain (Loss)

427

(24)

29

Other Gain (Loss)

188

12

207

Operating cash inflow was NT$10.25 billion.  Free cash flow for 2Q12 was negative NT$7.07 billion, as CAPEX spending for the quarter was NT$17.32 billion.  The NT$10.40 billion of financing cash inflow primarily reflected the proceeds from bond issuance.  Net cash inflow was NT$4.96 billion in 2Q12.

Cash Flow Summary

(Amount: NT$ million)

For the 3-Month

Period Ended

Jun. 30, 2012

For the 3-Month

Period Ended

Mar. 31, 2012

Cash Flow from Operations

10,254

9,498

  Net Income

2,990

1,335

  Depreciation & Amortization

8,084

7,865

  Changes in Working Capital

(999)

747

  Other

179

(449)

Cash Flow from Investing

(15,865)

(9,338)

  Capital Expenditures

(17,324)

(9,659)

Liquid of Investment

2,376

-

Acquisition of Long-term Investments

-

(16)

  Other

(917)

337

Cash Flow from Financing

10,404

919

  Bank Loans

404

806

Bonds Issued

9,991

-

  Other

9

113

Effect of Exchange Rate

171

(307)

Net Cash Flow

4,964

772

Cash and cash equivalents increased to NT$36.57 billion was mainly due to the issuance of domestic bonds in 2Q12.  The four day reduction in average inventory turnover was due to higher COGS as a result of increased wafer shipment in 2Q.

Current Assets

(Amount: NT$ billion)

2Q12

1Q12

2Q11

Cash & Cash Equivalents

36.57

31.60

45.38

Notes & Accounts Receivable

16.19

12.45

15.54

  Days Sales Outstanding

47

48

51

Inventories

10.63

10.11

11.39

  Avg. Inventory Turnover

46

50

51

Total Current Assets

71.06

62.15

81.26

Total liabilities increased to NT$72.91 billion in 2Q12.  This was due to the addition of NT$6.32 billion of cash dividends payable to stockholders in current liabilities, and also the domestic bond issuance in long-term liabilities.  Consequently, UMC's debt to equity ratio increased to 35%, which will be reduced after the dividends are paid out in 3Q12.

Liabilities

(Amount: NT$ billion)

2Q12

1Q12

2Q11

Total Current Liabilities

41.65

31.00

48.72

  Accounts Payable

5.25

4.42

5.14

  Short-Term Credit / Bonds

9.15

8.70

6.90

Cash Dividends Payable

6.32

-

14.03

  Payable on Equipment

8.09

7.34

9.03

  Other

12.84

10.54

13.62

Long-Term Liabilities

27.71

17.59

14.38

Total Liabilities

72.91

52.18

66.63

Debt to Equity

35%

25%

32%

Analysis of Revenue (Note 3)

Revenue breakdown by region remained unchanged QoQ.

Revenue Breakdown by Region

Region

2Q12

1Q12

4Q11

3Q11

2Q11

North America

45%

45%

47%

48%

49%

Asia Pacific

46%

46%

43%

40%

39%

Europe

8%

8%

9%

11%

11%

Japan

1%

1%

1%

1%

1%

Revenue contribution from different geometry nodes remained constant QoQ.  Since UMC has broadened its leading-edge technology customer base, we expect 40nm and below revenue contribution percentage to jump in 2H 2012.

Revenue Breakdown by Geometry

Geometry

2Q12

1Q12

4Q11

3Q11

2Q11

40nm and below

9%

9%

8%

6%

6%

40nm<x<=65nm

40%

40%

41%

34%

31%

65nm<x<=90nm

7%

6%

6%

8%

13%

90nm<x<=0.13um

18%

20%

23%

24%

24%

0.13um<x<=0.18um

10%

10%

10%

13%

12%

0.18um<x<=0.35um

11%

11%

9%

11%

9%

0.5um and above

5%

4%

3%

4%

5%

The percentage of revenue from Fabless customers increased slightly from 80% to 82% in 2Q12.

Revenue Breakdown by Customer Type

Customer Type

2Q12

1Q12

4Q11

3Q11

2Q11

Fabless

82%

80%

79%

76%

73%

IDM

18%

20%

21%

24%

27%

Communication demand showed greater QoQ strength this quarter, including WIFI, and handset related components.

Revenue Breakdown by Application (1)

Application

2Q12

1Q12

4Q11

3Q11

2Q11

Computer

17%

21%

14%

17%

15%

Communication

54%

49%

60%

53%

53%

Consumer

26%

27%

23%

27%

29%

Memory

1%

1%

1%

1%

1%

Others

2%

2%

2%

2%

2%

(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. Memory consists of DRAM, SRAM, Flash, ROM, and EEPROM.

Blended Average Selling Price Trend

The blended average selling price (ASP) during 2Q12 remained flat.

(To view ASP trend, visit http://www.umc.com/english/investors/2Q12_ASP_trend.asp )

Shipment and Utilization Rate (Note 4)

Wafer shipments increased 18.6% sequentially to 1,142K in 2Q12, compared to  963K 8-inch equivalent wafers in 1Q12.  Accordingly, overall utilization rate for the quarter increased to 84%.

Wafer Shipments


2Q12

1Q12

4Q11

3Q11

2Q11

Wafer Shipments
(8" K equivalents)

1,142

963

915

1,025

1,145


Quarterly Capacity Utilization Rate


2Q12

1Q12

4Q11

3Q11

2Q11

Utilization Rate

84%

71%

68%

74%

87%

Total Capacity
(8" K equivalents)

1,372

1,364

1,376

1,358

1,330

Capacity (Note 5)

Capacity during the second quarter was 1,372K 8-inch equivalent wafers.  The estimated capacity for the third quarter will increase to 1,376K 8-inch equivalent wafers owing to the advanced capacity expansion at our Fab12A in Tainan.

Annual Capacity in

thousands of wafers

FAB

Geometry
(um)

2011

2010

2009

2008

Fab6A

6"

3.5 – 0.45

538

588

583

583

Fab8A

8"

0.5 – 0.25

813

816

816

816

Fab8C

8"

0.35 – 0.11

359

366

405

417

Fab8D

8"

0.13 – 0.09

364

314

267

257

Fab8E

8"

0.5 – 0.18

469

410

408

408

Fab8F

8"

0.18 – 0.11

388

388

381

372

Fab8S

8"

0.18 – 0.11

307

304

300

291

Fab12A

12"

0.18 – 0.040

501

374

385

389

Fab12i

12"

0.13 – 0.065

530

454

362

330

Total (1)

5,322

4,791

4,586

4,507

YoY Growth Rate

11%

4%

2%

5%

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


Quarterly Capacity in

thousands of wafers

FAB

3Q12E

2Q12

1Q12

4Q11

Fab6A

123

123

122

135

Fab8A

204

204

203

204

Fab8C

90

90

90

90

Fab8D

93

93

92

93

Fab8E

113

113

112

118

Fab8F

98

98

97

98

Fab8S

87

87

87

79

Fab12A

143

141

140

141

Fab12i

134

134

134

134

Total

1376

1372

1364

1,376





CAPEX

The 2012 CAPEX budget remains at US$2 billion. UMC spent US$584 million in the second quarter, bringing CAPEX spending to US$909 million for the first half of the year.

UMC Capital Expenditure by Year - in US$ billion

Year

2011

2010

2009

2008

2007

CAPEX

$ 1.6

$ 1.8

$ 0.55

$ 0.35

$ 0.9


2012 CAPEX Plan


8"

12"

Total

UMC

2%

98%

Approximately

US$2 billion















Recent Developments / Announcements

Jul. 9, 2012               

Lattice Announces Strategic Partnership with UMC for 40nm and 28nm Manufacturing

Jun. 29, 2012

UMC Aligns With IBM on 20nm Process with FinFET 3D Transistors

Jun. 12, 2012

UMC Shareholders Elect 12th term of Directors at Annual Shareholders Meeting

- The members of the Board remain unchanged. To maintain the company's high priority of corporate governance transparency, the number of independent and outside directors this year accounts for more than half of the 9 board seats. This will help the Company retain a responsive interaction between the Board and the management team.

 

At the meeting, shareholders also approved:

- The 2011 Business Report and Financial Statements. The Company's revenue for 2011 was NT$105.88 billion and net income after tax was NT$10.61 billion.

- The 2011 retained earnings distribution, which includes shareholder cash dividend of NT$6,316 million, estimated at approximately NT$0.5 per share, employee cash bonus of NT$1,618 million, and directors' remuneration of NT$9 million.

Jun. 5, 2012

A*STAR Institute of Microelectronics and UMC to Develop TSV Technology for BSI Image Sensor Used in Mobile Applications

May. 24, 2012

UMC Holds Groundbreaking Ceremony for Fab 12A Phase 5 & 6

Apr. 30, 2012

UMC Receives 2011 Best Supplier Award from Xilinx

Apr. 27, 2012

UMC Files Form 20-F for 2011 with US Securities and Exchange Commission

Apr. 25, 2012

UMC 1Q 2012 Financial Results

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

Third Quarter of 2012 Outlook & Guidance

Quarter-over-Quarter Guidance:

  • Wafer shipment: Increase marginally
  • Wafer ASP in US$: Increase marginally
  • Gross Margin: Mid 20% range
  • Capacity utilization: Remain flat from previous quarter
  • Segments: The computer and consumer segments will outpace communication segment.

Conference Call / Webcast Announcement

Wednesday, July 25, 2012

Time: 

8:00 PM (Taipei) / 8:00 AM (New York) / 1:00 PM (London)

Dial-in numbers and Access Codes:

USA Toll Free:

1866 519 4004

UK Toll Free:

0808 234 6646

Singapore and Other Areas: 

+65 6723 9381



Access Code: 

UMC

A live webcast and replay of the 2Q12 results announcement will be available at www.umc.com under the "Investor Relations \ Investor Events" section.

About UMC

UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing services for applications spanning every major sector of the IC industry. UMC's customer-driven foundry solutions allow chip designers to leverage the strength of the company's leading-edge processes, which include 28nm, 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 are both in volume production for a variety of customer products. The company employs over 13,000 people worldwide and has offices in Taiwan, Japan, Singapore, Europe, 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 concerning these risks is included in UMC's filings with the U.S. SEC, including on Form F-1, F-3, F-6 and 20-F, each as amended.

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 on Form F-1, F-3, F-6 and 20-F, 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 unaudited and unconsolidated, and prepared and published in accordance with ROC GAAP.  Investors are cautioned that there are many differences between 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.

Notes:

(1) Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with ROC GAAP, which differ in some material respects from generally accepted accounting principles in the United States.  They are un-audited, unconsolidated, and represent comparisons among the three-month period ending Jun 30, 2012, the three-month period ending Mar 31, 2012, and the equivalent three-month period that ended Jun 30, 2011.  For all 2Q12 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Jun 30, 2012 exchange rate of NT$29.87 per U.S. Dollar.

(2) One ADS represents five Taiwan-listed ordinary shares.

(3) Revenue in this section represents wafer sales.

(4) Utilization Rate = Quarterly Wafer Out / Quarterly Capacity

(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.

- FINANCIAL TABLES TO FOLLOW -

 

UNITED MICROELECTRONICS CORPORATION 

Condensed Unconsolidated Balance Sheet

As of  June  30, 2012

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














June  30, 2012


US$


NT$


%

ASSETS






Current Assets






 Cash and Cash Equivalents

1,224


36,565


13.1%

 Financial Assets at Fair Value through Profit or Loss, current

24


704


0.3%

 Available-for-Sale Financial Assets, current

180


5,384


1.9%

 Notes & Accounts Receivable, net

542


16,193


5.8%

 Inventories, net

356


10,628


3.8%

 Other Current Assets

53


1,581


0.6%

    Total Current Assets

2,379


71,055


25.5%







Non-Current Assets






 Funds and Investments

1,909


57,014


20.4%

 Property, Plant and Equipment, net

4,791


143,113


51.3%

 Other Assets

256


7,664


2.8%

    Total Non-Current Assets

6,956


207,791


74.5%

TOTAL ASSETS

9,335


278,846


100.0%







LIABILITIES






Current Liabilities






 Short-term Loans

80


2,394


0.9%

 Financial Liabilities at Fair Value through Profit or Loss, current

24


724


0.3%

 Payables

831


24,816


8.9%

 Dividends Payable

211


6,316


2.3%

 Current Portion of Long-term Liabilities

226


6,758


2.4%

 Other Current Liabilities

22


638


0.1%

    Total Current Liabilities

1,394


41,646


14.9%







Non-Current Liabilities






 Bonds Payable

737


22,021


7.9%

 Long-term Loans

191


5,694


2.0%

 Other Liabilities

119


3,550


1.3%

    Total Non-Current Liabilities

1,047


31,265


11.2%

TOTAL LIABILITIES

2,441


72,911


26.1%







STOCKHOLDERS' EQUITY






Capital Stock

4,331


129,379


46.4%

Additional Paid-in Capital

1,572


46,970


16.8%

Retained Earnings, Unrealized Gain or Loss on Financial
     Instruments and Cumulative Translation Adjustment 

1,157


34,549


12.5%

Treasury Stock

(166)


(4,963)


(1.8%)

TOTAL STOCKHOLDERS' EQUITY

6,894


205,935


73.9%

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

9,335


278,846


100.0%



















Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2012 exchange rate of NT $29.87 per U.S. Dollar.

          All figures are in ROC GAAP.








UNITED MICROELECTRONICS CORPORATION

Condensed Unconsolidated Income Statement

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




June 30, 2012


June 30, 2011


%


June 30, 2012


March 31, 2012


%


US$


NT$


US$


NT$


Chg.


US$


NT$


US$


NT$


Chg.

Net Sales

925


27,620


942


28,150


(1.9%)


925


27,620


796


23,765


16.2%

Cost of Goods Sold

(699)


(20,880)


(717)


(21,432)


(2.6%)


(699)


(20,880)


(644)


(19,215)


8.7%

Net Gross Profit

226


6,740


225


6,718


0.3%


226


6,740


152


4,550


48.1%


24.4%


24.4%


23.9%


23.9%




24.4%


24.4%


19.1%


19.1%



Operating Expenses




















  - Sales & Marketing

(16)


(492)


(20)


(585)


(15.9%)


(16)


(492)


(16)


(509)


(3.3%)

  - General & Administrative

(21)


(626)


(20)


(588)


6.5%


(21)


(626)


(18)


(552)


13.4%

  - Research & Development

(82)


(2,440)


(74)


(2,225)


9.7%


(82)


(2,440)


(74)


(2,165)


12.7%


(119)


(3,558)


(114)


(3,398)


4.7%


(119)


(3,558)


(108)


(3,226)


10.3%

Operating Income

107


3,182


111


3,320


(4.2%)


107


3,182


44


1,324


100.0%


11.5%


11.5%


11.8%


11.8%




11.5%


11.5%


5.6%


5.6%























Net Non-Operating Income (Expenses)

8


261


7


203


28.6%


8


261


6


169


54.4%

Income from Continuing Operations before
   Income Tax

115


3,443


118


3,523


(2.3%)


115


3,443


50


1,493


100.0%


12.5%


12.5%


12.5%


12.5%




12.5%


12.5%


6.3%


6.3%























Income Tax Expense

(15)


(453)


(11)


(331)


36.9%


(15)


(453)


(5)


(158)


100.0%

Net Income

100


2,990


107


3,192


(6.3%)


100


2,990


45


1,335


100.0%


10.8%


10.8%


11.3%


11.3%




10.8%


10.8%


5.6%


5.6%























Earnings per Share

0.008


0.24


0.009


0.26




0.008


0.24


0.004


0.11



Earnings per ADS (2)

0.040


1.20


0.044


1.30




0.040


1.20


0.018


0.55



Weighted Average Number of Shares




















Outstanding (in millions)



12,622




12,514






12,622




12,613











































Notes:




















(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2012 exchange rate of NT $29.87 per U.S. Dollar.

     All figures are in ROC GAAP.

(2) 1 ADS equals 5 common shares.







 

 UNITED MICROELECTRONICS CORPORATION

Condensed Unconsolidated Income Statement

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 Six-Month Period Ended


June 30, 2012


June 30, 2012


US$


NT$


%


US$


 NT$ 


%

Net Sales

925


27,620


100.0%


1,720


51,385


100.0%

Cost of Goods Sold

(699)


(20,880)


(75.6%)


(1,342)


(40,095)


(78.0%)

Net Gross Profit

226


6,740


24.4%


378


11,290


22.0%

























Operating Expenses












  - Sales & Marketing

(16)


(492)


(1.8%)


(34)


(1,001)


(1.9%)

  - General & Administrative

(21)


(626)


(2.3%)


(39)


(1,178)


(2.3%)

  - Research & Development

(82)


(2,440)


(8.8%)


(154)


(4,605)


(9.0%)


(119)


(3,558)


(12.9%)


(227)


(6,784)


(13.2%)

Operating Income 

107


3,182


11.5%


151


4,506


8.8%













Net Non-Operating Income (Expenses)

8


261


1.0%


14


430


0.8%

Income from Continuing Operations before
    Income Tax

115


3,443


12.5%


165


4,936


9.6%

























Income Tax Expense

(15)


(453)


(1.7%)


(20)


(611)


(1.2%)

Net Income 

100


2,990


10.8%


145


4,325


8.4%













Earnings per Share

0.008


0.24




0.011


0.34



Earnings per ADS (2)

0.040


1.20




0.057


1.70















Weighted Average Number of Shares
     Outstanding (in millions)



12,622






12,617















Notes:












(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2012 exchange rate of NT $29.87 per U.S. Dollar.



     All figures are in ROC GAAP.

(2) 1 ADS equals 5 common shares.













 UNITED MICROELECTRONICS CORPORATION

Condensed Unconsolidated Statement of Cash Flows

For The Six-Month Period Ended June 30, 2012

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







USD


NTD


Cash flows from operating activities :





    Net Income

145


4,325


    Depreciation & Amortization

534


15,949


    Gain on recovery in bad debt

(0)


(0)


    Gain on recovery in market value and obsolescence of inventories 

(11)


(315)


    Investment lossaccounted for under the equity method

22


646


    Gain on valuation of financial assets and liabilities

(1)


(24)


    Impairment loss

1


21


    Gain on disposal of investments

(15)


(445)


    Gain on disposal of property, plant and equipment

(0)


(11)


    Exchange gain on financial assets and liabilities

(2)


(57)


    Exchange gain on long-term liabilities

(3)


(78)


    Amortization of bond discounts 

6


171


    Amortization of deferred income

(1)


(41)


    Stock-based payment

6


174


    Exchange gain on capital reduction of long-term investments accounted for under the
         equity method

(10)


(311)


    Changes in assets, liabilities and others

(10)


(251)


Net cash provided by operating activities

661


19,753







Cash flows from investing activities :





    Proceeds from disposal of available-for-sales financial assets

25


758


    Acquisition of long-term investments accounted for under the equity method

(1)


(16)


    Proceeds from liquidation of long-term investments

80


2,376


    Acquisition of property, plant and equipment

(903)


(26,983)


    Proceeds from disposal of property, plant and equipment 

0


11


    Increase in deferred charges

(13)


(404)


    Increase in other assets - others

(32)


(945)


Net cash used in investing activities

(844)


(25,203)







Cash flows from financing activities :





    Decrease in short-term loans

(70)


(2,098)


    Proceeds from long-term loans

150


4,500


    Repayments of long-term loans

(40)


(1,192)


    Proceeds from bonds issued

335


10,000


    Bonds issue cost

(0)


(9)


    Exercise of employee stock options

4


118


    Proceeds from disposal of treasury stock

0


4


    Increase in deposits-in

0


0


Net cash providedby financing activities

379


11,323







Effect of exchange rate changes on cash and cash equivalents

(4)


(137)


Net increase in cash and cash equivalents

192


5,736







Cash and cash equivalents at beginning of period

1,032


30,829







Cash and cash equivalents at end of period

1,224


36,565












Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2012 exchange rate of NT $29.87 per U.S. Dollar.

         All figures are in ROC GAAP.

Contacts:

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

SOURCE United Microelectronics Corporation



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http://www.umc.com
http://www.umc.com/english/investors/2Q12_ASP_trend.asp

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