UMC Reports Second Quarter 2013 Results

UMC's Engagement with IBM to Propel 10nm Process Development

07 Aug, 2013, 06:52 ET from United Microelectronics Corporation

TAIPEI, Aug. 7, 2013 /PRNewswire/ --

Second Quarter 2013 Overview[1]:

  • Revenue: NT$31.91 billion (US$1.06 billion)
  • Gross margin: 19.4%; operating margin: 3.6%
  • Foundry Capacity Utilization Rate: 85%
  • Net income attributable to the stockholders of the parent: NT$1.81 billion (US$60 million)
  • Earnings per share: NT$0.15; earnings per ADS: US$0.025

[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 Jun 30, 2013, the three-month period ending Mar 31, 2013, and the equivalent three-month period that ended Jun 30, 2012. For all 2Q13 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Jun 30, 2013 exchange rate of NT$29.98 per U.S. Dollar.

United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC" or "The Company"), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2013.

Revenue was NT$31.91 billion, with gross margin at 19.4% and operating margin at 3.6%.  Net income attributable to the stockholders of the parent was NT$1.81 billion, with earnings per ordinary share of NT$0.15.

Mr. Po-Wen Yen, CEO of UMC, said, "UMC's second quarter 2013 operating results exceeded expectations.  The foundry segment recorded NT$30.33 billion in revenues, with profit margin from foundry operations of 5.3%.  Wafer shipments reached 1.307 million 8-inch equivalent wafers, bringing overall capacity utilization to 85%.  Revenue contribution from 40nm and below technologies grew from 18% in 1Q13 to 20% in 2Q13."

CEO Yen added, "As the industry advances to more cutting edge nodes, our customers expect to adopt new technologies for their upcoming advanced products.  To satisfy their increasing reliance on leading-edge geometries, we have recently announced our participation in the IBM alliance for 10nm FinFET CMOS process technology.  We are excited to team up with IBM and strongly believe the collaborative effort will help overcome a variety of research challenges to realize ground-breaking results that will better serve the industry's needs.  UMC will offer our upcoming process platforms based upon IBM fundamental technology and develop derivative processes according to customer requirements."

CEO Yen continued, "With the arrival of the third quarter, we project sequential revenue growth to follow a better-than-seasonal second quarter in the foundry segment.  In the mid-term, to perpetuate our leading position in the advanced specialty technology segment, UMC's R&D team continues to pull-in production milestones with enhanced process implementations to facilitate customer product deployment. UMC's comprehensive range of technologies enables customers from a wide array of industry segments to differentiate their products, thus helping UMC to expand its business scope, elevate overall competitiveness, and strengthen long term profitability."

Summary of Operating Results

Operating Results

(Amount: NT$ million)

2Q13

1Q13

QoQ % change

2Q12

YoY % change

Net Operating Revenues

31,905

27,781

14.8

30,377

5.0

Gross Profit

6,177

4,492

37.5

6,339

(2.6)

Operating Expenses

(5,017)

(4,178)

20.1

(4,173)

20.2

Net Other Operating Income and Expenses

(11)

(20)

(45.0)

4

-

Operating Income

1,149

294

290.8

2,170

(47.1)

Net Non-Operating Income and Expenses

631

7,249

(91.3)

655

(3.7)

Net Income Attributable to the Stockholders of the Parent

1,812

6,593

(72.5)

2,651

(31.6)

EPS   (NT$ per share)

0.15

0.52

0.21

         (US$ per ADS[2])

0.025

0.087

0.035

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

Consolidated revenue increased 14.8% QoQ from NT$27.78 billion in 1Q13 to NT$31.91 billion in 2Q13, and increased 5.0% YoY from NT$30.38 billion in 2Q12.  Gross profit was NT$6.18 billion, or 19.4% of revenue, compared to NT$4.49 billion, or 16.2% of 1Q13 revenue.  Operating income for the quarter was NT$1.15 billion, or 3.6% of revenue, compared to operating income of NT$0.29 billion, or 1.1% of 1Q13 revenue.  Net income attributable to the stockholders of the parent was NT$1.81 billion, compared to NT$6.59 billion in 1Q13.

Earnings per ordinary share for the quarter were NT$0.15.  Earnings per ADS were US$0.025.  The basic weighted average number of outstanding shares in 2Q13 was 12,464,972,126, compared with 12,631,240,995 shares in 1Q13 and 12,621,506,549 shares in 2Q12.  The diluted weighted average number of outstanding shares was 13,236,433,274 in 2Q13, compared with 13,396,609,065 shares in 1Q13 and 13,443,771,438 shares in 2Q12.  The fully diluted share count on June 30, 2013 was approximately 13,754,875,000.  On June 30, 2013, UMC held 200 million treasury shares acquired from the 15th share buy-back program.

Detailed Financials Section

COGS & Expenses

(Amount: NT$ million)

2Q13

1Q13

QoQ % change

2Q12

YoY % change

Net Operating Revenues

31,905

27,781

14.8

30,377

5.0

COGS

(25,728)

(23,289)

10.5

(24,038)

7.0

  Depreciation

(8,546)

(7,628)

12.0

(7,579)

12.8

  Other Mfg. Costs

(17,182)

(15,661)

9.7

(16,459)

4.4

Gross Profit

6,177

4,492

37.5

6,339

(2.6)

Gross Margin (%)

19.4%

16.2%

20.9%

Operating Expenses

(5,017)

(4,178)

20.1

(4,173)

20.2

  G&A

(966)

(1,019)

(5.2)

(841)

14.9

  Sales & Marketing

(800)

(763)

4.8

(776)

3.1

  R&D

(3,251)

(2,396)

35.7

(2,556)

27.2

Net Other Operating

Income & Expenses

(11)

(20)

(45.0)

4

-

Operating Income

1,149

294

290.8

2,170

(47.1)

The rise in revenue and other manufacturing costs were largely due to the increase in shipments for 2Q13.  R&D expenses rose to NT$3.25 billion from NT$2.40 billion QoQ, mainly reflecting the development costs associated with 28nm, 14nm and 10nm. 

Non-Operating Income and Expenses

(Amount: NT$ million)

2Q13

1Q13

2Q12

Non-Operating Income and Expenses

631

7,249

655

Net Interest Income and Expenses

(83)

(82)

(42)

Net Investment Gain and Loss

(33)

12

(18)

Gain and Loss on Disposal of Investment

671

33

401

Exchange Gain and Loss

(11)

37

122

Other Gain and Loss

87

7,249

192

Net non-operating income during 2Q13 was NT$631 million.  Gains on the disposal of investments include the EB conversion of Novatek shares.

Cash Flow Summary

(Amount: NT$ million)

For the 3-Month

Period Ended

Jun. 30, 2013

For the 3-Month

Period Ended 

Mar. 31, 2013

Cash Flow from Operating Activities

9,566

9,856

  Net Income before tax

1,780

7,543

  Depreciation & Amortization

9,744

9,625

  Bargain Purchase Gain

(14)

(7,140)

  Changes in Working Capital

(698)

(400)

  Other

(1,246)

228

Cash Flow from Investing Activities

(7,808)

(5,248)

  Capital Expenditures

(7,964)

(7,182)

Acquisition of Subsidiaries

(net of cash acquired)

(9)

2,650

  Other

165

(716)

Cash Flow from Financing Activities

(2,399)

5,729

  Bank Loans

(712)

(3,422)

Bonds Issued

(2)

9,990

Treasury Stock Acquired

(1,726)

(519)

  Other

41

(320)

Effect of Exchange Rate Changes

 on Cash and Cash Equivalents

80

494

Net Increase (Decrease) in Cash

 and Cash Equivalents

(561)

10,831

In 2Q13, cash generated from operations reached NT$9.57 billion.  CAPEX spending for the quarter was NT$7.96 billion, including NT$7.81 billion from the foundry segment.  The NT$2.40 billion of financing cash outflow that included NT$712 million of bank loan repayment and NT$1.73 billion of treasury share purchase.

Current Assets

(Amount: NT$ billion)

2Q13

1Q13

 2Q12

Cash and Cash Equivalents

52.86

53.42

48.94

Notes & Accounts Receivable

19.38

17.44

18.67

  Days Sales Outstanding

53

55

50

Inventories, net

14.33

14.23

13.72

  Days of Inventory

51

53

50

Total Current Assets

92.90

91.80

89.58

Cash and cash equivalents decreased to NT$52.86 billion.  Days sales outstanding also decreased by 2 days to 53 days.

Liabilities

(Amount: NT$ billion)

2Q13

1Q13

2Q12

Total Current Liabilities

57.62

37.30

53.22

  Notes & Accounts Payable

7.17

6.63

7.76

  Short-Term Credit / Bonds

23.51

11.23

15.51

  Payable on Equipment

7.59

5.74

9.52

  Other

19.35

13.70

20.43

Long-Term Credit / Bonds

28.54

41.55

32.50

Total Liabilities

93.19

86.02

91.08

Debt to Equity

44%

40%

43%

Total current liabilities grew to NT$57.62 billion.  Other current liabilities included NT$5.06 billion of cash dividends payable to stockholders.  Debt to equity ratio increased to 44%, which will be reduced after dividends are paid out in 3Q13.

Analysis of Revenue[3] for Foundry Segment

[3]

Revenue in this section represents wafer sales

Revenue Breakdown by Region

Region

2Q13

1Q13

4Q12

3Q12

2Q12

North America

47%

44%

45%

50%

45%

Asia Pacific

42%

46%

45%

40%

46%

Europe

8%

9%

9%

9%

8%

Japan

3%

1%

1%

1%

1%

2012 figures account for UMC parent company only.

Revenue contribution from North America and Japan both grew to 47% and 3% respectively.   

Revenue Breakdown by Geometry

Geometry

2Q13

1Q13

4Q12

3Q12

2Q12

40nm and below

20%

18%

15%

13%

9%

40nm

31%

32%

40%

41%

40%

65nm

6%

6%

7%

7%

7%

90nm

15%

14%

15%

15%

18%

0.13um

13%

15%

10%

9%

10%

0.18um

11%

11%

10%

11%

11%

2012 figures account for UMC parent company only.

40nm and below revenue grew from 18% in 1Q13 to 20% in 2Q13, reflecting strong demand from the communication segment.

Revenue Breakdown by Customer Type

Customer Type

2Q13

1Q13

4Q12

3Q12

2Q12

Fabless

90%

90%

90%

83%

82%

IDM

10%

10%

10%

17%

18%

2012 figures account for UMC parent company only.

The percentage of revenue from fabless customers remained at 90%.

Revenue Breakdown by Application (1)

Application

2Q13

1Q13

4Q12

3Q12

2Q12

Computer

18%

22%

18%

21%

17%

Communication

51%

47%

50%

49%

54%

Consumer

28%

28%

29%

27%

26%

Others

3%

3%

3%

3%

3%

2012 figures account for UMC parent company only.

(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.

Communication accounted for 51% of revenue in 2Q13.  The growth was driven by the increase in demand for wireless and handheld devices.   

Blended ASP Trend for Foundry Segment

Blended average selling price (ASP) during 2Q13 remained relatively flat

(To view ASP trend, visit http://www.umc.com/english/investors/2Q13_ASP_trend.asp )

Shipment and Utilization Rate[4] for Foundry Segment

[4]

Utilization Rate = Quarterly Wafer Out / Quarterly Capacity

Wafer Shipments

2Q13

1Q13

4Q12

3Q12

2Q12

Wafer Shipments

(8" K equivalents)

1,307

1,125

1,069

1,133

1,142

2012 figures account for UMC parent company only.

Quarterly Capacity Utilization Rate

2Q13

1Q13

4Q12

3Q12

2Q12

Utilization Rate

85%

78%

80%

84%

84%

Total Capacity

(8" K equivalents)

1,537

1,461

1,401

1,376

1,372

2012 figures account for UMC parent company only.

1,307 thousand 8-inch equivalent wafers were shipped during 2Q13, a 16.2% increase sequentially, bringing overall utilization rate for the quarter was 85%. 

Capacity[5] for Foundry Segment

[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.

Foundry segment capacity grew from 1,461K 8-inch equivalent wafers in 1Q13 to 1,537K 8-inch equivalent wafers in 2Q13, which included the full quarter recognition of Fab8N capacity and Fab12A expansion.  The estimated capacity for the third quarter will be 1,548K 8-inch equivalent wafers due to capacity expansion at Fab12i.

Annual Capacity in

thousands of wafers

Quarterly Capacity in

thousands of wafers

FAB

Geometry (um)

2012

2011

2010

2009

FAB

3Q13E

2Q13

1Q13

4Q12

Fab6A

6"

3.5 - 0.45

481

538

588

583

Fab6A

113

113

111

113

Fab8A

8"

0.5 - 0.25

815

813

816

816

Fab8A

204

204

201

204

Fab8C

8"

0.35 - 0.11

360

359

366

405

Fab8C

87

87

86

90

Fab8D

8"

0.13 - 0.09    

371

364

314

267

Fab8D

96

96

94

93

Fab8E

8"

0.5 - 0.18

449

469

410

408

Fab8E

105

105

103

113

Fab8F

8"

0.18 - 0.11

389

388

388

381

Fab8F

98

98

96

98

Fab8S

8"

0.18 - 0.11

348

307

304

300

Fab8S

84

84

83

87

Fab12A

12"

0.18 - 0.028

579

501

374

385

Fab8N

128

128

83

-

Fab12i

12"

0.13 - 0.040      

537

530

454

362

Fab12A

164

164

158

156

Total(1)

5,514

5,322

4,791

4,586

Fab12i

139

134

132

134

YoY Growth Rate                        

4%

11%

4%

2%

Total

1,548

1,537

1,461

1,401

2009~2012 figures account for UMC parent company only.

4Q12 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.

CAPEX for Foundry Segment

UMC Capital Expenditure by Year - in US$ billion

Year

2012

2011

2010

2009

2008

CAPEX

$ 1.7

$ 1.6

$ 1.8

$ 0.55

$ 0.35

2008~2012 figures account for UMC parent company only.

2013 Foundry CAPEX Plan

8"

12"

Total

8%

92%

US$1.5 billion

The 2013 foundry CAPEX budget remains at US$1.5 billion.  UMC spent US$496 million in the first half of 2013. 

Third Quarter of 2013 Outlook & Guidance

Quarter-over-Quarter Guidance:

  • Foundry Segment Wafer Shipments: 3-4% increase
  • Foundry Segment ASP in US$: Will remain flat
  • Foundry Segment Profitability: High single-digit percentage operating margin
  • Foundry Segment Capacity Utilization: Mid-80% range
  • Guidance to New Business Segment: Revenue to be approximately NT$1.5bn and operating loss to be approximately NT$600m

Recent Developments / Announcements

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

Conference Call / Webcast Announcement

Wednesday, August 07, 2013

Time:    

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

Dial-in numbers and Access Codes:

USA Toll Free: 

1800 871 3110, 1888 700 7397

Taiwan Number:  

02 2192 8018

Other Areas:    

+886 2 2192 8018

Access Code:   

UMC

A live webcast and replay of the 2Q13 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 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 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 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 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  June  30, 2013

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

June  30, 2013

US$

NT$

%

Assets

Current assets

 Cash and cash equivalents

1,763

52,863

17.4%

 Financial assets at fair value through profit or loss, current

21

639

0.2%

 Available-for-sale financial assets, current

93

2,782

0.9%

 Notes & Accounts receivable, net

646

19,379

6.4%

 Inventories, net

478

14,330

4.7%

 Other current assets

98

2,907

1.1%

    Total current assets

3,099

92,900

30.7%

Non-current assets

 Funds and investments

1,094

32,798

10.8%

 Property, plant and equipment

5,498

164,825

54.4%

 Other non-current assets

419

12,569

4.1%

    Total non-current assets

7,011

210,192

69.3%

Total assets

10,110

303,092

100.0%

Liabilities

Current liabilities

 Short-term loans

153

4,591

1.5%

 Financial liabilities at fair value through profit or loss, current

9

277

0.1%

 Payables

928

27,825

9.2%

 Dividends payable

169

5,061

1.7%

 Current portion of long-term liabilities

631

18,917

6.2%

 Other current liabilities

32

945

0.3%

    Total current liabilities

1,922

57,616

19.0%

Non-current liabilities

 Bonds payable

666

19,978

6.6%

 Long-term loans

286

8,560

2.8%

 Other non-current liabilities

234

7,034

2.3%

    Total non-current liabilities

1,186

35,572

11.7%

Total liabilities

3,108

93,188

30.7%

Equity

Equity attributable to the parent company

Capital

4,221

126,541

41.8%

Additional paid-in capital

1,512

45,343

15.0%

Retained earnings, unrealized gain or loss on available-for-sale     financial assets and exchange differences on translation of     foreign operations

1,192

35,720

11.8%

Treasury stock

(79)

(2,365)

(0.8%)

     Total equity attributable to the parent company

6,846

205,239

67.8%

Non-controlling interests

156

4,665

1.5%

     Total equity

7,002

209,904

69.3%

Total liabilities and equity

10,110

303,092

100.0%

Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2013 exchange rate of NT $29.98 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

June 30, 2013

June 30, 2012

%

June 30, 2013

March 31, 2013

%

US$

NT$

US$

NT$

Chg.

US$

NT$

US$

NT$

Chg.

Net operating revenues

1,064

31,905

1,013

30,377

5.0%

1,064

31,905

927

27,781

14.8%

Operating costs

(858)

(25,728)

(802)

(24,038)

7.0%

(858)

(25,728)

(777)

(23,289)

10.5%

Gross profit

206

6,177

211

6,339

(2.6%)

206

6,177

150

4,492

37.5%

19.4%

19.4%

20.9%

20.9%

19.4%

19.4%

16.2%

16.2%

Operating expenses

  - Sales and marketing expenses

(27)

(800)

(26)

(776)

3.1%

(27)

(800)

(25)

(763)

4.8%

  - General and administrative expenses

(32)

(966)

(28)

(841)

14.9%

(32)

(966)

(34)

(1,019)

(5.2%)

  - Research and development expenses

(109)

(3,251)

(85)

(2,556)

27.2%

(109)

(3,251)

(80)

(2,396)

35.7%

      Subtotal

(168)

(5,017)

(139)

(4,173)

20.2%

(168)

(5,017)

(139)

(4,178)

20.1%

Net other operating income and expenses

(0)

(11)

0

4

-

(0)

(11)

(1)

(20)

(45.0%)

Operating income

38

1,149

72

2,170

(47.1%)

38

1,149

10

294

100.0%

3.6%

3.6%

7.1%

7.1%

3.6%

3.6%

1.1%

1.1%

Net non-operating income and expenses

21

631

22

655

(3.7%)

21

631

242

7,249

(91.3%)

Income from continuing operations before

   income tax

59

1,780

94

2,825

(37.0%)

59

1,780

252

7,543

(76.4%)

5.6%

5.6%

9.3%

9.3%

5.6%

5.6%

27.2%

27.2%

Income tax expense

(1)

(42)

(16)

(484)

(91.3%)

(1)

(42)

(38)

(1,129)

(96.3%)

Net income

58

1,738

78

2,341

(25.8%)

58

1,738

214

6,414

(72.9%)

5.4%

5.4%

7.7%

7.7%

5.4%

5.4%

23.1%

23.1%

Other comprehensive income

12

350

(36)

(1,090)

-

12

350

51

1,542

(77.3%)

Total comprehensive income

70

2,088

42

1,251

66.9%

70

2,088

265

7,956

(73.8%)

    Net income attributable to:

       Stockholders of the parent

60

1,812

88

2,651

(31.6%)

60

1,812

220

6,593

(72.5%)

       Non-controlling interests

(2)

(74)

(10)

(310)

(76.1%)

(2)

(74)

(6)

(179)

(58.7%)

    Comprehensive income attributable to:

       Stockholders of the parent

72

2,160

52

1,561

38.4%

72

2,160

271

8,119

(73.4%)

       Non-controlling interests

(2)

(72)

(10)

(310)

(76.8%)

(2)

(72)

(6)

(163)

(55.8%)

Earnings per share-basic

0.005

0.15

0.007

0.21

0.005

0.15

0.017

0.52

Earnings per ADS (2)

0.025

0.75

0.035

1.05

0.025

0.75

0.087

2.60

Weighted average number of shares

outstanding (in millions)

12,465

12,622

12,465

12,631

Notes:

(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2013 exchange rate of NT $29.98 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 Six-Month Period Ended

June 30, 2013

June 30, 2013

US$

NT$

%

US$

 NT$ 

%

Net operating revenues

1,064

31,905

100.0%

1,991

59,686

100.0%

Operating costs

(858)

(25,728)

(80.6%)

(1,635)

(49,017)

(82.1%)

Gross profit

206

6,177

19.4%

356

10,669

17.9%

Operating expenses

  - Sales and marketing expenses

(27)

(800)

(2.5%)

(52)

(1,563)

(2.6%)

  - General and administrative expenses

(32)

(966)

(3.0%)

(66)

(1,985)

(3.3%)

  - Research and development expenses

(109)

(3,251)

(10.2%)

(189)

(5,646)

(9.5%)

      Subtotal

(168)

(5,017)

(15.7%)

(307)

(9,194)

(15.4%)

Net other operating income and expenses

(0)

(11)

(0.1%)

(1)

(32)

(0.1%)

Operating income

38

1,149

3.6%

48

1,443

2.4%

Net non-operating income and expenses

21

631

2.0%

263

7,880

13.2%

Income from continuing operations before    income tax

59

1,780

5.6%

311

9,323

15.6%

Income tax expense

(1)

(42)

(0.2%)

(39)

(1,171)

(1.9%)

Net income 

58

1,738

5.4%

272

8,152

13.7%

Other comprehensive income

12

350

1.1%

63

1,892

3.1%

Total comprehensive income

70

2,088

6.5%

335

10,044

16.8%

    Net income attributable to:

       Stockholders of the parent

60

1,812

5.7%

280

8,405

14.1%

       Non-controlling interests

(2)

(74)

(0.3%)

(8)

(253)

(0.4%)

    Comprehensive income attributable to:

       Stockholders of the parent

72

2,160

6.8%

343

10,279

17.2%

       Non-controlling interests

(2)

(72)

(0.3%)

(8)

(235)

(0.4%)

Earnings per share-basic

0.005

0.15

0.022

0.67

Earnings per ADS (2)

0.025

0.75

0.112

3.35

Weighted average number of shares      outstanding (in millions)

12,465

12,548

Notes:

(1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2013 exchange rate of NT $29.98 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 Six-Month Period Ended June 30, 2013

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

USD

NTD

Cash flows from operating activities:

    Net income before tax

311

9,323

    Depreciation & Amortization

646

19,369

    Share of profit of associates and joint ventures

(10)

(311)

    Impairment loss on financial assets

13

386

    Gain on disposal of investments

(23)

(704)

    Bargain purchase gain

(239)

(7,154)

    Exchange loss on financial assets and liabilities

8

249

    Exchange loss on long-term liabilities

7

207

    Changes in assets, liabilities and others

(65)

(1,943)

Net cash provided by operating activities

648

19,422

Cash flows from investing activities:

    Proceeds from disposal of available-for-sale financial assets

26

781

    Acquisition of financial assets measured at cost

(17)

(523)

    Proceeds from capital reduction and liquidation of investment

8

244

    Acquisition of subsidiaries (net of cash acquired)

88

2,641

    Acquisition of property, plant and equipment

(505)

(15,146)

    Proceeds from disposal of property, plant and equipment 

11

325

    Acquisition of intangible assets

(47)

(1,395)

    Others

1

17

Net cash used in investing activities

(435)

(13,056)

Cash flows from financing activities:

    Decrease in short-term loans

(43)

(1,284)

    Proceeds from bonds issued

334

10,000

    Proceeds from long-term loans

55

1,650

    Repayments of long-term loans

(150)

(4,500)

    Treasury stock acquired

(75)

(2,245)

    Acquisition of subsidiaries

(10)

(285)

    Others

(0)

(6)

Net cash provided by financing activities

111

3,330

Effect of exchange rate changes on cash and cash equivalents

18

574

Net increase in cash and cash equivalents

342

10,270

Cash and cash equivalents at beginning of period

1,421

42,593

Cash and cash equivalents at end of period

1,763

52,863

Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2013 exchange rate of NT $29.98 per U.S. Dollar.  All figures are prepared in accordance with TIFRSs.

Contacts:

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

SOURCE United Microelectronics Corporation



RELATED LINKS

http://www.umc.com


http://www.umc.com/english/investors/2Q13_ASP_trend.asp