UMC Reports Third Quarter 2013 Results Results Top 3Q Guidance, Company Sees Slowdown in 4Q

TAIPEI, Taiwan, Oct. 30, 2013 /PRNewswire/ --

Third Quarter 2013 Overview[1]:

  • Revenue: NT$33.41 billion (US$1.13 billion)
  • Gross margin: 22.0%; operating margin: 7.2%
  • Foundry Capacity Utilization Rate: 87%
  • Net income attributable to the stockholders of the parent: NT$3.48 billion (US$117 million)
  • Earnings per share: NT$0.28; earnings per ADS: US$0.047

[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 Sep 30, 2013, the three-month period ending Jun 30, 2013, and the equivalent three-month period that ended Sep 30, 2012. For all 3Q13 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the Sep 30, 2013 exchange rate of NT$ 29.62 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 third quarter of 2013.

Revenue was NT$33.41 billion, with gross margin at 22.0% and operating margin at 7.2%.  Net income attributable to the stockholders of the parent was NT$3.48 billion, with earnings per ordinary share of NT$0.28.

Mr. Po-Wen Yen, CEO of UMC, said "In the third quarter of 2013, the foundry segment recorded NT$31.60 billion in revenues, with profit margin from foundry operations of 9.0%.  Wafer shipments hit an all-time high of 1.329 million 8-inch equivalent wafers, bringing overall capacity utilization to 87%.  The New Business segment recorded NT$1.83 billion in revenue, with net loss of NT$0.51 billion, down from a loss of NT$0.57 billion in 2Q13.  40nm business continued to grow and accounted for 20% of sales during 3Q13."

CEO Yen added, "During the last couple of quarters, the engineering group has focused relentlessly on yield enhancement activities to improve our 28nm manufacturing technologies.  These accumulated efforts enabled 28nm Poly SiON and HK/MG yields to accelerate its climb.  This accomplishment allows our pre-production customers to shift closer towards volume production, and concurrently shortens the time required for new customer adoption of UMC's 28nm platform.  In the upcoming months, we look forward to further optimizing 28nm yield levels to move more customers towards volume production.  In terms of specialty technologies, UMC continues to lead the foundry sector in high-voltage (HV) manufacturing processes used for applications such as driver ICs in mobile devices.  Our unique HV technologies increase our customers' competitiveness so they may further gain market share in today's growing display industry."

CEO Yen continued, "For the fourth quarter, we have seen a decline in wafer demand.  Primary factors that led to a weakened outlook stemmed from seasonal correction, supply chain inventory control and the uncertainties culminating in the macro economy.  We firmly believe UMC is well positioned to benefit from the robust 28nm demand in the mobile industry for the next several years.  To secure long-term foundry growth, UMC continues to deploy our advanced logic/mixed mode and specialty derivative technology offerings.  UMC's diversified product portfolio will enhance our manufacturing flexibilities to accommodate additional customer production requirements, broaden our business scale and solidify our position as a one of the leading players in the foundry industry."

Summary of Operating Results

Operating Results

(Amount: NT$ million)

3Q13

2Q13

QoQ %
change

3Q12

YoY %
change

Net Operating Revenues

33,407

31,905

4.7

30,174

10.7

Gross Profit

7,337

6,177

18.8

5,724

28.2

Operating Expenses

(4,894)

(5,017)

(2.5)

(3,752)

30.4

Net Other Operating Income and Expenses

(48)

(11)

336.4

(2,704)

(98.2)

Operating Income

2,395

1,149

108.4

(732)

-

Net Non-Operating Income and Expenses

1,561

631

147.4

2,481

(37.1)

Net Income Attributable to the Stockholders of

   the Parent

3,476

1,812

91.8

1,493

132.8

EPS (NT$ per share)

0.28

0.15


0.12


        (US$ per ADS[2])

0.047

0.025


0.020



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

The consolidated revenue increased 4.7% QoQ, from NT$31.91 billion in 2Q13 to NT$33.41 billion in 3Q13, and increased 10.7% YoY from NT$30.17 billion in 3Q12.  Gross profit was NT$7.34 billion, or 22.0% of revenue, compared to NT$6.18 billion, or 19.4% of 2Q13 revenue.  Operating income for the quarter was NT$2.40 billion, or 7.2% of revenue, compared to operating income of NT$1.15 billion, or 3.6% of 2Q13 revenue.  Net income attributable to the stockholders of the parent was NT$3.48 billion, compared to NT$1.81 billion in 2Q13.

Earnings per ordinary share for the quarter were NT$0.28.  Earnings per ADS were US$0.047.  The basic weighted average number of outstanding shares in 3Q13 was 12,459,978,088, compared with 12,464,972,126 shares in 2Q13 and 12,628,658,938 shares in 3Q12.  The diluted weighted average number of outstanding shares was 13,201,315,449 in 3Q13, compared with 13,236,433,274 shares in 2Q13 and 13,358,778,084 shares in 3Q12.  The fully diluted share count on September 30, 2013 was approximately 13,767,258,000.  On September 30, 2013, UMC held 200 million treasury shares acquired from the 15th share buy-back programs.

Detailed Financials Section

COGS & Expenses

(Amount: NT$ million)

3Q13

2Q13

QoQ %

3Q12

YoY %

change

change

Net Operating Revenues

33,407

31,905

4.7

30,174

10.7

COGS

(26,070)

(25,728)

1.3

(24,450)

6.6

  Depreciation

(8,151)

(8,546)

(4.6)

(7,733)

5.4

  Other Mfg. Costs

(17,919)

(17,182)

4.3

(16,717)

7.2

Gross Profit

7,337

6,177

18.8

5,724

28.2

Gross Margin (%)

22.0%

19.4%


19.0%


Operating Expenses

(4,894)

(5,017)

(2.5)

(3,752)

30.4

  G&A

(854)

(966)

(11.6)

(727)

17.5

  Sales & Marketing

(778)

(800)

(2.8)

(687)

13.2

  R&D

(3,262)

(3,251)

0.3

(2,338)

39.5

Net Other Operating

Income & Expenses

(48)

(11)

336.4

(2,704)

(98.2)

Operating Income

2,395

1,149

108.4

(732)

-

The rise in revenue and other manufacturing costs was primarily due to the increase in shipments during 3Q13.  Depreciation within COGS decreased 4.6% to NT$8.15 billion. Total operating expenses decreased by 2.5% to NT$4.89 billion.  G&A expenses decreased 11.6% to NT$854 million. R&D expenses remained relatively flat at NT$3.26 billion

Non-Operating Income and Expenses

(Amount: NT$ million)

3Q13

2Q13

3Q12

Non-Operating Income and Expenses

1,561

631

2,481

   Net Interest Income and Expenses

(77)

(83)

(75)

   Net Investment Gain and Loss

639

(33)

876

   Gain and Loss on Disposal of Investment

506

671

2,001

   Exchange Gain and Loss

53

(11)

62

   Other Gain and Loss

440

87

(383)

Net non-operating income for 3Q13 was NT$1.56 billion.  Net investment income was NT$639 million, mainly from cash dividend payments from invested companies.  Gain on the disposal of investments was NT$506 million. Other gain was NT$440 million, mainly from valuation of financial liabilities.

Cash Flow Summary

(Amount: NT$ million)

For the 3-Month

Period Ended 

For the 3-Month
Period Ended 

Sep. 30, 2013

Jun. 30, 2013

Cash Flow from Operating Activities

13,140

9,566

      Net Income before tax

3,956

1,780

      Depreciation & Amortization

9,495

9,744

      Bargain Purchase Gain

-

(14)

      Changes in Working Capital

414

(698)

      Other

(725)

(1,246)

Cash Flow from Investing Activities

(10,722)

(7,808)

      Capital Expenditures

(10,015)

(7,964)

      Acquisition of Subsidiaries 
          (net of cash acquired)

-

(9)

      Other

(707)

165

Cash Flow from Financing Activities

(4,467)

(2,399)

      Bank Loans

291

(712)

Bonds Issued

-

(2)

Treasury Stock Acquired

-

(1,726)

Cash Dividends

(5,061)

-

      Other

303

41

Effect of Exchange Rate Changes

   on Cash and Cash Equivalents

(478)

80

Net Decrease in Cash and Cash

Equivalents

(2,527)

(561)

Cash inflow from operations was NT$13.14 billion in 3Q13.  Higher operating cash flow in 3Q13 reflects the increase in net income before tax.  CAPEX spending during 3Q13 was NT$10.02 billion including NT$9.64 billion from the foundry segment.  Cash outflow from financing was NT$4.47 billion, due to a NT$5.06 billion payment of cash dividends to stockholders. Net cash outflow in 3Q13 was NT$2.53 billion.

Current Assets

(Amount: NT$ billion)

3Q13

2Q13

 3Q12

Cash and Cash Equivalents

50.34

52.86

42.97

Notes & Accounts Receivable

18.66

19.38

17.90

  Days Sales Outstanding

52

53

50

Inventories, net

14.17

14.33

13.48

  Days of Inventory 

50

51

50

Total Current Assets

88.90

92.90

84.10

Cash and cash equivalents decreased to NT$50.34 billion due to CAPEX spending and dividend payment in 3Q13.  Days of inventory decreased by one day to 50 days.

Liabilities

(Amount: NT$ billion)

3Q13

2Q13

3Q12

Total Current Liabilities

52.27

57.62

45.85

  Notes & Accounts Payable

7.62

7.17

6.13

  Short-Term Credit / Bonds

23.44

23.51

16.53

  Payable on Equipment

8.95

7.59

10.06

  Other

12.26

19.35

13.13

Long-Term Credit / Bonds

28.80

28.54

32.05

Total Liabilities

88.35

93.19

83.68

Debt to Equity

42%

44%

40%

Current liabilities decreased to NT$52.27 billion, reflecting the payment of NT$5.06 billion cash dividends to stockholders.  Debt to equity ratio decreased to 42%.

Analysis of Revenue[3] for Foundry Segment

Revenue Breakdown by Region

Region

3Q13

2Q13

1Q13

4Q12

3Q12

North America

43%

47%

44%

45%

50%

Asia Pacific

44%

42%

46%

45%

40%

Europe

7%

8%

9%

9%

9%

Japan

6%

3%

1%

1%

1%







2012 figures account for UMC parent company only.

Revenue contribution from Asia Pacific and Japan both grew to 44% and 6% respectively.

Revenue Breakdown by Geometry

Geometry

3Q13

2Q13

1Q13

4Q12

3Q12

40nm and below

20%

20%

18%

15%

13%

40nm<x<=65nm

34%

31%

32%

40%

41%

65nm<x<=90nm

6%

6%

6%

7%

7%

90nm<x<=0.13um

16%

15%

14%

15%

15%

0.13um<x<=0.18um

11%

13%

15%

10%

9%

0.18um<x<=0.35um

10%

11%

11%

10%

11%

0.5um and above

3%

4%

4%

3%

4%


2012 figures account for UMC parent company only.

Advanced node contribution from 65nm and below revenue grew to 54% in 3Q13 from 51% in 2Q13.

Revenue Breakdown by Customer Type

Customer Type

3Q13

2Q13

1Q13

4Q12

3Q12

Fabless

86%

90%

90%

90%

83%

IDM

14%

10%

10%

10%

17%


2012 figures account for UMC parent company only.

The percentage of revenue from IDM customers increased to 14%.  

Revenue Breakdown by Application (1)

Application

3Q13

2Q13

1Q13

4Q12

3Q12

Computer

16%

18%

22%

18%

21%

Communication

52%

51%

47%

50%

49%

Consumer

28%

28%

28%

29%

27%

Others

4%

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.

The communication segment contribution continued to grow in 3Q13, accounting for 52% of sales, reflecting the continuous strength and robust demand for wireless and handheld devices. 

[3] Revenue in this section represents wafer sales

Blended ASP Trend for Foundry Segment

Blended average selling price (ASP) during 3Q13 remained relatively flat.

(To view ASP trend, visit http://www.umc.com/english/investors/3Q13_ASP_trend.asp )

Shipment and Utilization Rate[4] for Foundry Segment

Wafer Shipments


3Q13

2Q13

1Q13

4Q12

3Q12

Wafer Shipments
(8" K equivalents)

1,329

1,307

1,125

1,069

1,133







2012 figures account for UMC parent company only.


Quarterly Capacity Utilization Rate


3Q13

2Q13

1Q13

4Q12

3Q12

Utilization Rate

87%

85%

78%

80%

84%

Total Capacity
(8" K equivalents)

1,548

1,537

1,461

1,401

1,376







2012 figures account for UMC parent company only.

 

Wafer shipments increased 1.7% QoQ, bringing total shipments to 1,329 thousand 8-inch equivalent wafers during 3Q13. Overall utilization rate for the quarter was 87%.

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

Capacity[5] for Foundry Segment

Foundry segment capacity grew from 1,537 8-inch equivalent wafers in 2Q13 to 1,548 8-inch equivalent wafers in 3Q13 due to Fab12i capacity expansion. The estimated capacity for the fourth quarter will increase to 1,560K 8-inch equivalent wafers as expansion continues at Fab12i in Singapore.

Annual Capacity in
thousands of wafers


Quarterly Capacity in

thousands of wafers

FAB

Geometry
(um)

2012

2011

2010

2009


FAB

4Q13E

3Q13

2Q13

1Q13

Fab6A

6"

3.5 – 0.45

481

538

588

583


Fab6A

113

113

113

111

Fab8A

8"

0.5 – 0.25

815

813

816

816


Fab8A

204

204

204

201

Fab8C

8"

0.35 – 0.11

360

359

366

405


Fab8C

87

87

87

86

Fab8D

8"

0.13 – 0.09

371

364

314

267


Fab8D

96

96

96

94

Fab8E

8"

0.5 – 0.18

449

469

410

408


Fab8E

105

105

105

103

Fab8F

8"

0.18 – 0.11

389

388

388

381


Fab8F

98

98

98

96

Fab8S

8"

0.18 – 0.11

348

307

304

300


Fab8S

84

84

84

83

Fab12A

12"

0.18 – 0.028

579

501

374

385


Fab8N

128

128

128

83

Fab12i

12"

0.13 – 0.040

537

530

454

362


Fab12A

164

164

164

158

Total(1)

5,514

5,322

4,791

4,586


Fab12i

145

139

134

132

YoY Growth Rate

4%

11%

4%

2%


Total

1,560

1,548

1,537

1,461


2009~2012 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.

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

9%

91%

US$1.5 billion

The 2013 foundry CAPEX budget will remain unchanged at US$1.5 billion. At the conclusion of the third quarter, UMC's year-to-date CAPEX spending totaled US$818 million.

[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.  

Fourth Quarter of 2013 Outlook & Guidance

Quarter-over-Quarter Guidance:

  • Foundry Segment Wafer Shipments: 8-10% decrease
  • Foundry Segment ASP in US$: Will decrease by approximately 2%
  • Foundry Segment Profitability: Operating margin to be approximately break-even
  • Foundry Segment Capacity Utilization: Mid-70% range
  • Guidance to New Business Segment: Revenue to be approximately NT$2.2bn and operating loss to be approximately NT$550m

Recent Developments / Announcements

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

Conference Call / Webcast Announcement

Wednesday, October 30, 2013

Time:     5:00 PM (Taipei) / 5:00 AM (New York) / 09:00 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 3Q13 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 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  September  30, 2013

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














September  30, 2013


US$


NT$


%

Assets






Current assets






 Cash and cash equivalents

1,699


50,336


16.8%

 Financial assets at fair value through profit or loss, current

21


632


0.2%

 Available-for-sale financial assets, current

80


2,380


0.8%

 Notes & Accounts receivable, net

630


18,659


6.2%

 Inventories, net

478


14,171


4.7%

 Other current assets

94


2,725


1.0%

    Total current assets

3,002


88,903


29.7%







Non-current assets






 Funds and investments

1,067


31,595


10.5%

 Property, plant and equipment

5,623


166,559


55.6%

 Other non-current assets

428


12,692


4.2%

    Total non-current assets

7,118


210,846


70.3%

Total assets

10,120


299,749


100.0%







Liabilities






Current liabilities






 Short-term loans

172


5,086


1.7%

 Financial liabilities at fair value through profit or loss, current

2


51


0.0%

 Payables

940


27,833


9.3%

 Current portion of long-term liabilities

620


18,350


6.1%

 Other current liabilities

31


949


0.3%

    Total current liabilities

1,765


52,269


17.4%







Non-current liabilities






 Bonds payable

674


19,978


6.7%

 Long-term loans

298


8,823


2.9%

 Other non-current liabilities

246


7,282


2.5%

    Total non-current liabilities

1,218


36,083


12.1%

    Total liabilities

2,983


88,352


29.5%







Equity






Equity attributable to the parent company






Capital

4,284


126,905


42.3%

Additional paid-in capital

1,532


45,383


15.1%

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

1,249


36,974


12.4%

Treasury stock

(80)


(2,365)


(0.8%)

     Total equity attributable to the parent company

6,985


206,897


69.0%

Non-controlling interests

152


4,500


1.5%

     Total equity

7,137


211,397


70.5%

Total liabilities and equity

10,120


299,749


100.0%


Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2013 exchange rate of NT $29.62 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




September 30, 2013


September 30, 2012


%


September 30, 2013


June 30, 2013


%


US$


NT$


US$


NT$


Chg.


US$


NT$


US$


NT$


Chg.

Net operating revenues

1,128


33,407


1,019


30,174


10.7%


1,128


33,407


1,077


31,905


4.7%

Operating costs

(880)


(26,070)


(826)


(24,450)


6.6%


(880)


(26,070)


(868)


(25,728)


1.3%

Gross profit

248


7,337


193


5,724


28.2%


248


7,337


209


6,177


18.8%


22.0%


22.0%


19.0%


19.0%




22.0%


22.0%


19.4%


19.4%



Operating expenses




















  - Sales and marketing expenses

(26)


(778)


(23)


(687)


13.2%


(26)


(778)


(27)


(800)


(2.8%)

  - General and administrative expenses

(29)


(854)


(25)


(727)


17.5%


(29)


(854)


(33)


(966)


(11.6%)

  - Research and development expenses

(110)


(3,262)


(79)


(2,338)


39.5%


(110)


(3,262)


(109)


(3,251)


0.3%

      Subtotal

(165)


(4,894)


(127)


(3,752)


30.4%


(165)


(4,894)


(169)


(5,017)


(2.5%)

Net other operating income and expenses

(2)


(48)


(91)


(2,704)


(98.2%)


(2)


(48)


(1)


(11)


100.0%

Operating income (loss)

81


2,395


(25)


(732)


-


81


2,395


39


1,149


100.0%


7.2%


7.2%


(2.4%)


(2.4%)




7.2%


7.2%


3.6%


3.6%























Net non-operating income and expenses

53


1,561


84


2,481


(37.1%)


53


1,561


21


631


100.0%

Income from continuing operations before
   income tax

134


3,956


59


1,749


100.0%


134


3,956


60


1,780


100.0%


11.8%


11.8%


5.8%


5.8%




11.8%


11.8%


5.6%


5.6%























Income tax expense

(20)


(590)


(45)


(1,331)


(55.7%)


(20)


(590)


(1)


(42)


100.0%

Net income

114


3,366


14


418


100.0%


114


3,366


59


1,738


93.7%


10.1%


10.1%


1.4%


1.4%




10.1%


10.1%


5.4%


5.4%























Other comprehensive income

(76)


(2,249)


(81)


(2,412)


(6.8%)


(76)


(2,249)


11


350


-





















Total comprehensive income

38


1,117


(67)


(1,994)


-


38


1,117


70


2,088


(46.5%)





















    Net income attributable to:




















        Stockholders of the parent

117


3,476


50


1,493


100.0%


117


3,476


61


1,812


91.8%

        Non-controlling interests

(3)


(110)


(36)


(1,075)


(89.8%)


(3)


(110)


(2)


(74)


48.6%





















    Comprehensive income attributable to:




















        Stockholders of the parent

42


1,255


(31)


(920)


-


42


1,255


73


2,160


(41.9%)

        Non-controlling interests

(4)


(138)


(36)


(1,074)


(87.2%)


(4)


(138)


(3)


(72)


91.7%





















Earnings per share-basic

0.009


0.28


0.004


0.12




0.009


0.28


0.005


0.15



Earnings per ADS (2)

0.047


1.40


0.020


0.60




0.047


1.40


0.025


0.75



Weighted average number of shares




















outstanding (in millions)



12,460




12,629






12,460




12,465











































Notes:




















(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2013 exchange rate of NT $29.62 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 Nine-Month Period Ended


September 30, 2013


September 30, 2013


US$


NT$


%


US$


 NT$ 


%

Net operating revenues

1,128


33,407


100.0%


3,143


93,093


100.0%

Operating costs

(880)


(26,070)


(78.0%)


(2,535)


(75,087)


(80.7%)

Gross profit

248


7,337


22.0%


608


18,006


19.3%

























Operating expenses












  - Sales and marketing expenses

(26)


(778)


(2.3%)


(79)


(2,341)


(2.5%)

  - General and administrative expenses

(29)


(854)


(2.6%)


(96)


(2,840)


(3.0%)

  - Research and development expenses

(110)


(3,262)


(9.8%)


(301)


(8,908)


(9.6%)

      Subtotal

(165)


(4,894)


(14.7%)


(476)


(14,089)


(15.1%)

Net other operating income and expenses

(2)


(48)


(0.1%)


(2)


(79)


(0.1%)

Operating income

81


2,395


7.2%


130


3,838


4.1%













Net non-operating income and expenses

53


1,561


4.6%


318


9,441


10.2%

Income from continuing operations before
   income tax

134


3,956


11.8%


448


13,279


14.3%

























Income tax expense

(20)


(590)


(1.7%)


(59)


(1,762)


(1.9%)

Net income 

114


3,366


10.1%


389


11,517


12.4%













Other comprehensive income

(76)


(2,249)


(6.8%)


(12)


(356)


(0.4%)













Total comprehensive income

38


1,117


3.3%


377


11,161


12.0%













    Net income attributable to:












        Stockholders of the parent

117


3,476


10.4%


401


11,881


12.8%

        Non-controlling interests

(3)


(110)


(0.3%)


(12)


(364)


(0.4%)













    Comprehensive income attributable to:












        Stockholders of the parent

42


1,255


3.8%


389


11,534


12.4%

        Non-controlling interests

(4)


(138)


(0.5%)


(12)


(373)


(0.4%)













Earnings per share-basic

0.009


0.28




0.032


0.95



Earnings per ADS (2)

0.047


1.40




0.160


4.75















Weighted average number of shares
     outstanding (in millions)



12,460






12,518















Notes:












(1) New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2013 exchange rate of NT $29.62 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 Nine-Month Period Ended September 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

448


13,279

    Depreciation & Amortization

974


28,864

    Share of profit of associates and joint ventures

(18)


(527)

    Impairment loss on financial assets

22


660

    Gain on disposal of investments

(41)


(1,210)

    Bargain purchase gain

(242)


(7,154)

    Exchange loss on financial assets and liabilities

7


198

    Exchange loss on long-term liabilities

6


163

    Changes in assets, liabilities and others

(57)


(1,711)

Net cash provided by operating activities

1,099


32,562





Cash flows from investing activities :




    Proceeds from disposal of available-for-sale financial assets

70


2,060

    Acquisition of financial assets measured at cost

(28)


(834)

    Proceeds from capital reduction and liquidation of investment

9


273

    Acquisition of subsidiaries (net of cash acquired)

89


2,641

    Acquisition of property, plant and equipment

(849)


(25,161)

    Proceeds from disposal of property, plant and equipment 

18


534

    Acquisition of intangible assets

(87)


(2,568)

    Others

(25)


(723)

Net cash used in investing activities

(803)


(23,778)





Cash flows from financing activities :




    Decrease in short-term loans

(26)


(761)

    Proceeds from bonds issued

338


10,000

    Proceeds from long-term loans

266


7,887

    Repayments of long-term loans

(370)


(10,969)

    Cash dividends

(171)


(5,061)

    Treasury stock acquired

(76)


(2,245)

    Acquisition of subsidiaries

(10)


(303)

    Others

11


315

Net cash used in financing activities

(38)


(1,137)





Effect of exchange rate changes on cash and cash equivalents

3


96

Net increase in cash and cash equivalents

261


7,743





Cash and cash equivalents at beginning of period

1,438


42,593





Cash and cash equivalents at end of period

1,699


50,336









Note: New Taiwan Dollars have been translated into U.S. Dollars at the September 30, 2013 exchange rate of NT $29.62
          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/english/investors/3Q13_ASP_trend.asp
http://www.umc.com/English/news/2013/20130917.asp
http://www.umc.com/English/news/2013/20130917.asp
http://www.umc.com/English/news/2013/20130828.asp
http://www.umc.com/English/news/2013/20130823.asp
http://www.umc.com

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