ChipMOS REPORTS FIRST QUARTER 2011 RESULTS

Selected Operation Data

1Q11

4Q10

Revenue by segment

  Testing

34%

36%

  Assembly

32%

33%

  LCD Driver

34%

31%

Utilization by segment

  Testing

62%

60%

  Assembly

82%

72%

  LCD Driver

88%

72%

  Overall

77%

68%

CapEx

US$28.0 million

US$36.6 million

  Testing

12%

37%

  Assembly

13%

11%

  LCD Driver

75%

52%

Depreciation and amortization expenses (US GAAP)

US$49.0 million

US$52.7 million

ChipMOS TECHNOLOGIES (Bermuda) LTD.

CONSOLIDATED INCOME STATEMENT

For the Three Months Ended Mar. 31, 2011, Dec. 31, and Mar. 31, 2010

Figures in Million of U.S. dollars (USD) ⁽¹⁾

Except for Per Share Amounts and Shares Outstanding

ROC GAAP

US GAAP

3 months ended

3 months ended

Mar. 31, 2011

(Unaudited)

Dec. 31, 2010

(Unaudited)

Mar. 31, 2010

(Unaudited)

Mar. 31, 2011

(Unaudited)

Dec. 31, 2010

(Unaudited)

Mar. 31, 2010

(Unaudited)

USD

USD

USD

USD

USD

USD

Net Revenue

152.0

147.0

124.9

152.0

147.0

124.9

Cost of Revenue

140.1

137.3

136.5

140.5

138.3

137.0

Gross Profit (Loss)

11.9

9.7

(11.6)

11.5

8.7

(12.1)

Other Operating Income

-

-

-

0.6

110.0

37.7

Operating Expenses

Research and Development

3.5

3.6

3.1

3.5

3.6

3.1

Sales and Marketing

0.5

0.5

0.4

0.5

0.5

0.4

General and Administrative

5.1

6.0

5.3

4.8

5.6

5.4

Other Operating Expenses

-

-

-

0.4

49.8

1.3

Total Operating Expenses

9.1

10.1

8.8

9.2

59.5

10.2

Income (Loss) from Operations

2.8

(0.4)

(20.4)

2.9

59.2

15.4

Non-Operating Income (Expenses), Net

(6.5)

49.7

28.5

(6.7)

(10.5)

(8.0)

Income (Loss) before Income Tax

(3.7)

49.3

8.1

(3.8)

48.7

7.4

Income Tax Benefit (Expense)

0.4

1.3

1.7

0.5

1.6

1.8

Net Income (Loss)

(3.3)

50.6

9.8

(3.3)

50.3

9.2

Add: Net Loss (Income) Attributable to Noncontrolling Interests

(0.8)

(4.9)

(0.2)

(0.7)

(4.5)

(0.1)

Net Income (Loss) Attributable to ChipMOS

(4.1)

45.7

9.6

(4.0)

45.8

9.1

Earnings (Loss) Per Share Attributable to ChipMOS -Basic

(0.16)

1.78

0.47

(0.16)

1.78

0.45

Shares Outstanding (in thousands)-Basic⁽²⁾

25,748

25,705

20,201

25,748

25,705

20,201

Net Income (Loss) Attributable to ChipMOS -Diluted

(4.1)

45.8

0.3

(4.0)

46.0

(0.1)

Earnings (Loss) Per Share Attributable to ChipMOS -Diluted

(0.16)

1.66

0.01

(0.16)

1.66

(0.00)

Shares Outstanding (in thousands)-Diluted⁽²⁾

25,748

27,694

27,113

25,748

27,694

27,113

Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$29.40 against US$1.00 as of Mar. 31, 2011. The convenience translation should not be construed as representations that the NT dollar amounts have been, or could be in the future be, converted into US dollars at this or any other exchange rate.

(2) The outstanding shares for the three months ended Dec. 31, and Mar. 31, 2010 have been retroactively adjusted for the reverse stock split of the Company's common stock with a ratio of 1-for-every-4 shares effective on January 21, 2011.

ChipMOS TECHNOLOGIES (Bermuda) LTD.

CONSOLIDATED INCOME STATEMENT

For the Three Months Ended Mar. 31, 2011, Dec. 31, and Mar. 31, 2010

Figures in Million of NT dollars (NTD)

Except for Per Share Amounts and Shares Outstanding

ROC GAAP

US GAAP

3 months ended

3 months ended

Mar. 31, 2011

(Unaudited)

Dec. 31, 2010

(Unaudited)

Mar. 31, 2010

(Unaudited)

Mar. 31, 2011

(Unaudited)

Dec. 31, 2010

(Unaudited)

Mar. 31, 2010

(Unaudited)

NTD

NTD

NTD

NTD

NTD

NTD

Net Revenue

4,469.6

4,322.6

3,671.5

4,469.6

4,322.6

3,671.5

Cost of Revenue

4,118.4

4,037.2

4,012.6

4,132.1

4,067.8

4,026.2

Gross Profit (Loss)

351.2

285.4

(341.1)

337.5

254.8

(354.7)

Other Operating Income

-

-

-

16.5

3,234.7

1,109.4

Operating Expenses

Research and Development

103.4

107.1

92.6

103.4

107.1

92.6

Sales and Marketing

15.8

14.2

12.3

15.8

14.2

12.3

General and Administrative

149.6

175.0

155.3

140.9

163.6

158.2

Other Operating Expenses

-

-

-

9.8

1,465.0

39.1

Total Operating Expenses

268.8

296.3

260.2

269.9

1,749.9

302.2

Income (Loss) from Operations

82.4

(10.9)

(601.3)

84.1

1,739.6

452.5

Non-Operating Income (Expenses), Net

(190.2)

1,461.3

836.9

(197.4)

(308.9)

(233.9)

Income (Loss) before Income Tax

(107.8)

1,450.4

235.6

(113.3)

1,430.7

218.6

Income Tax Benefit (Expense)

12.3

38.7

49.9

14.7

47.9

52.6

Net Income (Loss)

(95.5)

1,489.1

285.5

(98.6)

1,478.6

271.2

Add: Net Loss (Income) Attributable to Noncontrolling Interests

(23.6)

(145.9)

(4.5)

(20.1)

(131.8)

(2.5)

Net Income (Loss) Attributable to ChipMOS

(119.1)

1,343.2

281.0

(118.7)

1,346.8

268.7

Earnings (Loss) Per Share Attributable to ChipMOS-Basic

(4.63)

52.25

13.91

(4.61)

52.39

13.30

Shares Outstanding (in thousands)-Basic⁽¹⁾

25,748

25,705

20,201

25,748

25,705

20,201

Net Income (Loss) Attributable to ChipMOS –Diluted

(119.1)

1,347.5

9.7

(118.7)

1,351.2

(2.5)

Earnings (Loss) Per Share Attributable to ChipMOS-Diluted

(4.63)

48.66

0.36

(4.61)

48.79

(0.09)

Shares Outstanding (in thousands)-Diluted⁽¹⁾

25,748

27,694

27,113

25,748

27,694

27,113

Note:

(1) The outstanding shares for the three months ended Dec. 31, and Mar. 31, 2010 have been retroactively adjusted for the reverse stock split of the Company's common stock with a ratio of 1-for-every-4 shares effective on January 21, 2011.

ChipMOS TECHNOLOGIES (Bermuda) LTD.

RECONCILIATION OF US GAAP NET INCOME (LOSS) ATTRIBUTABLE TO CHIPMOS

TO NON-GAAP NET INCOME (LOSS) ATTRIBUTABLE TO CHIPMOS (UNAUDITED)

For the Three Months Ended Mar. 31, 2011, Dec. 31, and Mar. 31, 2010

Figures in Million of U.S. dollars (USD) ⁽¹⁾

Except for Per Share Amounts

Use of Non-GAAP Financial Information

To supplement our consolidated income statement (unaudited) for the three months ended Mar. 31, 2011 on a US GAAP basis, the Company uses a non-GAAP measure of net income (loss) attributable to ChipMOS, which is US GAAP net income (loss) attributable to ChipMOS adjusted to exclude two non-cash items referred to as special items.  The two non-cash items excluded are changes in the fair value of the embedded derivative liabilities and amortization of discount on convertible notes. These items are considered by the management to be outside of the Company's core operating results.  For example, changes in the fair value of the embedded derivative liabilities relate heavily to the Company's stock price, interest rate and volatility, all of which are difficult to predict and outside of the control of the Company and its management.

For these reasons, management uses non-GAAP adjusted measures of net income (loss) attributable to ChipMOS and non-GAAP earnings (loss) per share attributable to ChipMOS to evaluate the performance of our core businesses and to estimate future core performance. In addition, this information facilitates our management's internal comparisons to our historical operating results as well as to the operating results of our competitors.

The Company's management finds these supplemental non-GAAP measures to be useful, and we believe these non-GAAP measures are useful to investors in enabling them to perform additional analyses of past, present and future operating performance and as a supplemental means to evaluate our core operating results. However, readers are reminded that non-GAAP numbers are merely a supplement to, and not a replacement for, US GAAP financial measures. They should be read in conjunction with the US GAAP financial measures. It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies.

3 months ended

Mar. 31, 2011

Dec. 31, 2010

Mar. 31, 2010

US GAAP Net Income (Loss) Attributable to ChipMOS-Basic

(4.0)

45.8

9.1

US GAAP Net Income (Loss) Attributable to ChipMOS-Diluted

(4.0)

46.0

(0.1)

Special Items (in Non-Operating Income (Expenses), Net)

Changes in the fair value of the embedded derivative liabilities⁽²⁾

2.1

0.4

0.2

Amortization of discount on convertible notes⁽³⁾

0.1

0.1

0.2

Total Special Items

2.2

0.5

0.4

Non-GAAP Adjusted Net Income (Loss) Attributable to ChipMOS-Basic

(1.8)

46.3

9.5

Non-GAAP Adjusted Net Income (Loss) Attributable to ChipMOS-Diluted⁽⁴⁾

(1.8)

46.0

(0.1)

US-GAAP Earnings (Loss) Per Share Attributable to ChipMOS-Basic

(0.16)

1.78

0.45

    Adjustment for special items

0.09

0.02

0.02

Non-GAAP Earnings (Loss) Per Share Attributable to ChipMOS-Basic

(0.07)

1.80

0.47

US-GAAP Earnings (Loss) Per Share Attributable to ChipMOS-Diluted

(0.16)

1.66

(0.00)

    Adjustment for special items

0.09

-

-

Non-GAAP Earnings (Loss) Per Share Attributable to ChipMOS-Diluted

(0.07)

1.66

(0.00)

Notes:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$29.40 against US$1.00 as of Mar. 31, 2011. The convenience translation should not be construed as representations that the NT dollar amounts have been, or could be in the future be, converted into US dollars at this or any other exchange rate.

(2) The Company's management believes excluding non-cash special item for the changes in the fair value of the embedded derivative liabilities from its non-GAAP financial measure of net income (loss) attributable to ChipMOS is useful for itself and investors as such gain (expense) does not have any impact on cash available to the Company.

(3) The Company's management believes excluding non-cash amortization expense of discount on convertible notes from its non-GAAP financial measure of net income (loss) attributable to ChipMOS is useful for itself and investors as such expense does not have any impact on cash available to the Company.

(4) US GAAP Net Income (Loss) Attributable to ChipMOS-Diluted for the three months ended Dec. 31, 2010 and Mar. 31, 2010 already excludes non-cash special items for the changes in the fair value of the embedded derivative liabilities and non-cash amortization expense of discount on convertible notes.

ChipMOS TECHNOLOGIES (Bermuda) LTD.

NON-GAAP CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)

(Excluding non-cash items for changes in the fair value of the embedded derivative liabilities and amortization of discount on convertible notes)

For the Three Months Ended Mar. 31, 2011, Dec. 31, and Mar. 31, 2010

Figures in Million of U.S. dollars (USD) ⁽¹⁾

Except for Per Share Amounts and Shares Outstanding

3 months ended

Mar. 31, 2011

Dec. 31, 2010

Mar. 31, 2010

Net Revenue

152.0

147.0

124.9

Cost of Revenue

140.5

138.3

137.0

Gross Profit (Loss)

11.5

8.7

(12.1)

Other Operating Incomes

0.6

110.0

37.7

Operating Expenses

Research and Development

3.5

3.6

3.1

Sales and Marketing

0.5

0.5

0.4

General and Administrative

4.8

5.6

5.4

Other Operating Expenses

0.4

49.8

1.3

Total Operating Expenses

9.2

59.5

10.2

Income (Loss) from Operations

2.9

59.2

15.4

Non-Operating Income (Expenses), Net⁽²⁾

(4.5)

(10.0)

(7.6)

Income (Loss) before Income Tax ⁽²⁾

(1.6)

49.2

7.8

Income Tax Benefit (Expense)

0.5

1.6

1.8

Net Income (Loss)⁽²⁾

(1.1)

50.8

9.6

Add: Net Loss (Income) Attributable to Noncontrolling Interests

(0.7)

(4.5)

(0.1)

Net Income (Loss) Attributable to ChipMOS-Basic ⁽²⁾

(1.8)

46.3

9.5

Earnings (Loss) Per Share Attributable to ChipMOS-Basic⁽²⁾

(0.07)

1.80

0.47

Shares Outstanding (in thousands)-Basic⁽³⁾

25,748

25,705

20,201

Net Income (Loss) Attributable to ChipMOS -Diluted⁽²⁾

(1.8)

46.0

(0.1)

Earnings (Loss) Per Share Attributable to ChipMOS-Diluted⁽²⁾

(0.07)

1.66

(0.00)

Shares Outstanding (in thousands)-Diluted⁽³⁾

25,748

27,694

27,113

Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$29.40 against US$1.00 as of Mar. 31, 2011. The convenience translation should not be construed as representations that the NT dollar amounts have been, or could be in the future be, converted into US dollars at this or any other exchange rate.

(2) The amount presented is not prepared in accordance with US GAAP and does not include non-cash loss for changes in the fair value of the embedded derivative liabilities of NT$62.0 million or US$2.1 million and amortization of discount on convertible notes of NT$1.1 million or US$0.1 million for the three months ended Mar. 31, 2011, non-cash loss for changes in the fair value of the embedded derivative liabilities of NT$12.2 million or US$0.4 million and amortization of discount on convertible notes of NT$1.6 million or US$0.1 million for the three months ended Dec. 31, 2010, and non-cash loss for changes in the fair value of the embedded derivative liabilities of NT$5.6 million or US$0.2 million and amortization of discount on convertible notes of NT$5.5 million or US$0.2 million for the three months ended Mar. 31, 2010. Please see "Reconciliation of US GAAP Net Income (Loss) Attributable to ChipMOS to Non-GAAP Net Income (Loss) Attributable to ChipMOS (Unaudited)" above.

(3) The outstanding shares for the three months ended Dec. 31, and Mar. 31, 2010 have been retroactively adjusted for the reverse stock split of the Company's common stock with a ratio of 1-for-every-4 shares effective on January 21, 2011.

ChipMOS TECHNOLOGIES (Bermuda) LTD.

CONSOLIDATED BALANCE SHEET

As of Mar. 31, 2011, Dec. 31, and Mar. 31, 2010

Figures in Million of U.S. dollars (USD) ⁽¹⁾

ROC GAAP

US GAAP

Mar. 31, 2011

(Unaudited)

Dec. 31, 2010

(Audited)

Mar. 31, 2010

(Unaudited)

Mar. 31, 2011

(Unaudited)

Dec. 31, 2010

(Audited)

Mar. 31, 2010

(Unaudited)

ASSETS

USD

USD

USD

USD

USD

USD

Cash and Cash Equivalents

194.1

243.0

172.1

194.1

243.0

172.1

Financial Assets at Fair Value Through Profit or Loss

-

0.1

4.6

-

0.1

4.6

Accounts and Notes Receivable

113.0

105.0

87.9

113.0

105.0

87.9

Inventories

43.6

43.5

29.4

43.6

43.6

29.4

Other Current Assets

68.5

43.4

42.1

68.3

43.2

41.9

Total Current Assets

419.2

435.0

336.1

419.0

434.9

335.9

Long-Term Investments

0.4

0.4

0.7

0.4

0.4

0.7

Property, Plant & Equipment-Net

568.2

587.5

681.0

555.9

575.6

670.6

Intangible Assets

3.3

3.2

3.5

3.3

3.2

3.5

Other Assets

40.1

39.0

32.5

42.7

41.5

34.6

Total Assets

1,031.2

1,065.1

1,053.8

1,021.3

1,055.6

1,045.3

LIABILITIES

Current Liabilities

Short-Term Loans

36.4

50.8

77.0

36.4

50.8

77.0

Current Portion of Long-Term Debts

149.2

169.8

117.9

149.2

169.8

117.9

Accounts Payable and Payables to Contractors and Equipment Suppliers

29.6

50.4

31.3

29.6

50.4

31.3

Current Portion of Long-Term Lease Payable

28.5

28.0

27.3

28.5

28.0

27.3

Other Current Liabilities

61.9

64.9

56.6

61.9

64.9

56.6

Total Current Liabilities

305.6

363.9

310.1

305.6

363.9

310.1

Long-Term Liabilities

Long-Term Debts

209.2

198.8

340.8

209.2

198.8

340.8

Long-Term Lease Payable

14.9

21.5

43.4

14.9

21.5

43.4

Other Liabilities

3.3

3.3

3.6

16.6

16.6

13.0

Total Liabilities

533.0

587.5

697.9

546.3

600.8

707.3

EQUITY

Shareholders' Equity

Capital Stock

1.3

1.2

1.0

1.3

1.2

1.0

Deferred Compensation

(0.1)

(0.1)

(0.2)

-

-

(0.2)

Capital Surplus

514.8

477.6

445.5

504.7

467.8

436.4

Retained Earnings (Accumulated Losses)

(132.4)

(128.3)

(174.7)

(132.0)

(127.9)

(173.7)

Treasury Stock

(37.9)

(4.4)

(3.1)

(37.9)

(4.4)

(3.1)

Cumulated Translation Adjustments

11.9

11.1

13.5

11.9

11.1

13.5

Unrecognized Pension Cost

-

-

-

(9.0)

(9.5)

(7.7)

Total Shareholders' Equity

357.6

357.1

282.0

339.0

338.3

266.2

Noncontrolling Interests

140.6

120.5

73.9

136.0

116.5

71.8

Total Equity

498.2

477.6

355.9

475.0

454.8

338.0

Total Liabilities & Equity

1,031.2

1,065.1

1,053.8

1,021.3

1,055.6

1,045.3

Note:

(1) All U.S. dollar figures in this release are based on the exchange rate of NT$29.40 against US$1.00 as of Mar. 31, 2011. The convenience translation should not be construed as representations that the NT dollar amounts have been, or could be in the future be, converted into US dollars at this or any other exchange rate.

ChipMOS TECHNOLOGIES (Bermuda) LTD.

CONSOLIDATED BALANCE SHEET

As of Mar. 31, 2011, Dec. 31, and Mar. 31, 2010

Figures in Million of NT dollars (NTD)

ROC GAAP

US GAAP

Mar. 31, 2011

(Unaudited)

Dec. 31, 2010

(Audited)

Mar. 31, 2010

(Unaudited)

Mar. 31, 2011

(Unaudited)

Dec. 31, 2010

(Audited)

Mar. 31, 2010

(Unaudited)

ASSETS

NTD

NTD

NTD

NTD

NTD

NTD

Cash and Cash Equivalents

5,707.8

7,143.3

5,059.6

5,707.8

7,143.3

5,059.6

Financial Assets at Fair Value Through Profit or Loss

-

3.0

134.0

-

3.0

134.0

Accounts and Notes Receivable

3,323.4

3,088.0

2,584.3

3,323.4

3,088.0

2,584.3

Inventories

1,282.2

1,279.8

863.7

1,283.1

1,280.9

864.6

Other Current Assets

2,014.9

1,276.2

1,239.4

2,008.7

1,270.0

1,233.2

Total Current Assets

12,328.3

12,790.3

9,881.0

12,323.0

12,785.2

9,875.7

Long-Term Investments

10.5

10.5

20.0

10.5

10.5

20.0

Property, Plant & Equipment-Net

16,704.8

17,273.0

20,023.0

16,342.4

16,924.1

19,714.9

Intangible Assets

95.6

94.2

101.6

95.6

94.2

101.6

Other Assets

1,179.4

1,147.0

956.3

1,255.4

1,221.1

1,018.5

Total Assets

30,318.6

31,315.0

30,981.9

30,026.9

31,035.1

30,730.7

LIABILITIES

Current Liabilities

Short-Term Loans

1,070.6

1,494.7

2,265.0

1,070.6

1,494.7

2,265.0

Current Portion of Long-Term Debts

4,386.1

4,991.5