Siliconware Precision Industries Reports a 10.8% Quarter-over-Quarter Growth in Revenues Resulting in Earnings per Share of NT$ 0.47 or Earnings per ADS of US$ 0.08 for Third Quarter 2011

TAICHUNG, Taiwan, Oct. 26, 2011 /PRNewswire-Asia/ -- Siliconware Precision Industries Co., Ltd. ("SPIL" or the "Company") (Taiwan Stock Exchange: 2325, NASDAQ: SPIL) today announced that its consolidated sales revenues for the third quarter of 2011 were NT$ 16,325 million, which represented a 10.8% growth in revenues compared to the second quarter of 2011 and a 0.1% growth in revenues compared to the third quarter of 2010. SPIL reported a net income of NT$ 1,471 million for the third quarter of 2011, compared with a net income of NT$ 1,125 million and a net income of NT$ 1,490 million for the second quarter of 2011 and the third quarter of 2010, respectively.

Diluted earnings per ordinary share for this quarter was NT$ 0.47, and diluted earnings per ADS was US$ 0.08.

All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.

Operating results review:

• For the third quarter of 2011, net revenues from IC packaging were NT$ 14,947 million and represented 91% of total net revenues. Net revenues from testing operations were NT$ 1,378 million and represented 9% of total net revenues.
• Cost of goods sold was NT$ 13,843 million, representing an increase of 11.3% compared to the second quarter of 2011 and a decrease of 1.0% compared to the third quarter of 2010.
  • Raw materials costs were NT$ 7,568 million for the third quarter of 2011, and represented 46.4% of total net revenues, whereas raw materials costs were NT$ 6,570 million and represented 44.6% of total net revenues for the second quarter of 2011.
  • The accrued expenses of bonuses to employees accounted for under cost of goods sold totaled NT$ 115 million.    
• Gross profit was NT$ 2,482 million for the third quarter of 2011, representing a gross margin of 15.2%, which declined from a gross margin of 15.6% for the second quarter of 2011 and was up from 14.2% for the third quarter of 2010.    
• Total operating expenses for the third quarter of 2011 were NT$ 1,135 million, which included selling expenses of NT$ 196 million, administrative expenses of NT$ 430 million and R&D expenses of NT$ 509 million. Total operating expenses represented 7.0% of total net revenues for the third quarter of 2011.
  • The accrued expenses of bonuses to employees, directors and supervisors accounted for under operating expenses totaled NT$ 49 million.  
• Operating income was NT$ 1,347 million for the third quarter of 2011, representing an operating margin of 8.2%, which decreased from 8.3% for the second quarter of 2011 and decreased from 9.6% for the third quarter of 2010.
• Non-operating items:
  • Our net currency exchange gain of NT$ 79 million for the third quarter of 2011 was mainly due to appreciation of our US dollar denominated asset as a result of an appreciation in the foreign currency exchange rate of the US dollar against NT dollar, our reporting currency.
  • Our net investment income of NT$ 199 million for the third quarter of 2011 was primarily cash dividends received from Unimicron.  
• Net income before tax was NT$ 1,629 million for the third quarter of 2011, which increased from a net income before tax of NT$ 1,268 million for the second quarter of 2011 and increased from a net income before tax of NT$ 1,479 million for the third quarter of 2010.
• Income tax expense was NT$ 158 million for the third quarter of 2011, compared with income tax expense of NT$ 143 million for the second quarter of 2011 and income tax credit of NT$ 11 million for the third quarter of 2010.
• Net income was NT$ 1,471 million for the third quarter of 2011, which increased from a net income of NT$ 1,125 million for the second quarter of 2011 and decreased from a net income of NT$ 1,490 million for the third quarter of 2010.
• Total number of shares outstanding was 3,124 million shares as of Sept 30, 2011. Diluted earnings per ordinary share for this quarter was NT$ 0.47, or US$ 0.08 per ADS.  

Capital expenditure and balance sheet highlight:

• Our cash balances totaled NT$ 14,230 million as of Sept 30, 2011 from NT$ 14,267 million as of June 30, 2011, and NT$ 11,820 million as of Sept 30, 2010.  
• Capital expenditures for the third quarter of 2011 totaled NT$ 2,681 million, which included NT$ 2,298 million for packaging equipment and NT$ 383 million for testing equipment.
• Total depreciation expenses for the third quarter of 2011 totaled NT$ 2,293 million, which included NT$ 1,741 million was from packaging operations and NT$ 552 million from testing operations.

IC packaging service:

• Net revenues from IC packaging operations were NT$ 14,947 million for the third quarter of 2011, which represented an increase of NT$ 1,498 million or 11.1% compared to the second quarter of 2011.
• Substrate-based packaging, leadframe-based packaging and wafer bumping & FCBGA accounted for 45%, 27% and 19%, respectively, of total net revenues for the third quarter of 2011.
• Capital expenditures for IC packaging operations totaled NT$ 2,298 million for the third quarter of 2011, which included NT$ 2,281 million for packaging and building construction and NT$ 17 million for wafer bumping operations.
• As of Sept 30, 2011 we had 6,616 wirebonders installed, of which 290 were added   and 384 were disposed in the third quarter of 2011.

IC testing service:                      

• Net revenues from testing operations were NT$ 1,378 million for the third quarter of 2011, which represented an increase of NT$ 92 million or 7.1% compared to the second quarter of 2011.
• Capital expenditures for testing operations totaled NT$ 383 million for the third quarter of 2011.
• As of Sept 30, 2011 we had 337 testers installed, of which 1 was added and 10 were disposed in the third quarter of 2011.

Revenue Analysis

• Breakdown by end applications:

• Breakdown by packaging type:

About SPIL

Siliconware Precision Industries Ltd. ("SPIL")(NASDAQ:SPIL, Taiwan Stock Exchange:2325) is a leading provider of comprehensive semiconductor assembly and test services. SPIL is dedicated to meeting all of its customers' integrated circuit packaging and testing requirements, with turnkey solutions that range from design consultations, modeling and simulations, wafer bumping, wafer probe and sort, package assembly, final test, burn-in, to shipment. Products include advanced leadframe, substrate packages, wafer bumping and FCBGA, which are widely used in personal computers, communications, Internet appliances, cellular phones, digital cameras, cable modems, personal digital assistants and LCD monitors. SPIL supplies services and support to fabless design houses, integrated device manufacturers and wafer foundries globally. For further information, visit SPIL's web site at www.spil.com.tw.

Safe Harbor Statement

The information herein contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. We have based these forward-looking statements on our current expectation and projections about future events. Such forward-looking statements are inherently subject to known and unknown risks, uncertainties, assumptions about us and other factors that may cause the actual performance, financial condition or results of operations of SPIL to be materially different from what may be implied by 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, among other things:

• the intensely competitive personal computer, communications, consumer ICs and non-commodity memory semiconductor industries and markets;
• cyclical nature of the semiconductor industry;
• risks associated with global business activities;
• non-operating losses due to poor financial performance of some of our investments;
• our dependence on key personnel;
• general economic and political conditions;
• possible disruptions in commercial activities caused by natural and human induced disaster, including terrorist activities and armed conflicts and contagious disease, such as the Severe Acute Respiratory Syndrome;
• fluctuations in foreign currency exchange rates; and
• other risks identified in our annual reports on Form 20-F filed with the U.S. Securities and Exchange Commission each year.

The words "anticipate," "believe," "estimate," "expect," "intend," "plan" and similar expressions, as they relate to us, are intended to identify a number of these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.  In light of these risks, uncertainties and assumptions, the forward-looking events discussed herein might not occur and our actual results could differ materially from those anticipated in these forward-looking statements.

All financial figures discussed herein are prepared pursuant to ROC GAAP on an unaudited consolidated basis. Audited consolidated financial figures will be publicly announced upon the completion of our audit process. The investment gains or losses of our company for the three months ended Sept 30, 2011 reflect our gains or losses attributable to the third quarter of 2011 unaudited financial results of several of our investees which are evaluated under the equity method. Neither the unaudited consolidated financial data for our company for the three months ended Sept 30, 2011, nor the unaudited consolidated financial data for our company for the nine months ended Sept 30 2011 is necessarily indicative of the results that may be expected for any period thereafter.

Contact:

Siliconware Precision Industries Co., Ltd.
No.45, Jieh Show Rd.
Hsinchu Science Park, Hsinchu
Taiwan, 30056
www.spil.com.tw

Janet Chen, IR Director
[email protected]
+886-3-5795678#3675

Byron Chiang, Spokesperson
[email protected]
+886-3-5795678#3671

SOURCE Siliconware Precision Industries Co., Ltd.